According to a renowned financial analyst, the Chinese multinational telephone company is threatened with leaving the smartphone market, which it occupies the first place thanks to its sales records in 2020.
By April 2020, Huawei had climbed to the number one spot among smartphone vendors in the world, overtaking Korean Samsung. The Chinese manufacturer can also boast of being the first supplier of 5G compatible smartphones in the world. These exceptional results are misleading, however, according to analyst Ming-Chi Kuo, known for his highly reliable forecasts for Apple.
Tackling Huawei this time around, the analyst has established several scenarios in which he believes Huawei will be significantly affected by US sanctions and more generally by the mistrust of a number of Western countries towards the Chinese company. According to the most optimistic of the assumptions, Huawei would only suffer from a decrease in its market share, but a more pessimistic scenario depicts a Chinese giant withdrawing completely from the mobile phone market, in favor of its competitors.
As a reminder, the United States, through the voice of Donald Trump, clearly displayed their hostility towards the Chinese manufacturer, going so far as to designate Huawei and its subsidiaries as a "threat to national security". The logic of global anti-Huawei escalation seems to be confirmed, with countries like India, Vietnam and Great Britain imposing in turn sanctions against the Chinese company. France, for its part, would also organize the ban of Huawei from its market.
It has been a difficult year for Huawei: the operator has lost its Android license and Western sanctions are preventing it from conquering its most promising market, 5G. Huawei smartphones have been deprived of Google services (Gmail, Maps, Chrome, etc.). What's more, the limitations imposed on Huawei are not just software: the Chinese company is forced to call on foreign companies for the supply of latest generation microprocessors.
But what definitely confirms Huawei's downward trend is the American determination to isolate the Chinese economy as much as possible, a phenomenon amplified by the presidential elections to come next November in the United States. Donald Trump’s recent decision to force Chinese enforcement TikTok to be taken over by an American company is a sign that Chinese companies still have concerns.
The forecast for Huawei is excellent news for its competitors, whether Chinese (Xiaomio, Oppo, Vivo …) or other nationalities (Samsung, Apple …). Huawei's future remains very uncertain, with on the one hand growing pressure from the United States to isolate the Chinese manufacturer, and on the other an ability to resist: despite the sanctions, Huawei made $ 35 million in profit each. day in the first half of 2020.