It looks like Huawei's future in the smartphone market is getting darker by the day. Our South Korean colleagues from The Elec argue that the Chinese company will produce only 50 million mobiles in 2021. A dizzying drop compared to deliveries expected for the current year, which are around 190 million terminals. This decline is even more marked compared to 2019, the year in which Huawei shipped 240 million smartphones worldwide.
The blow is all the harder as the company had just won first place in the ranking of mobile vendors in terms of deliveries. A good second quarter mainly due to an excellent performance in China. But the sanctions from the United States, which now affect the production of SoCs in particular, make things very complicated for Huawei. In the inability to provide itself with specific components, the production of mobiles becomes impossible on a large scale.
Samsung and Xiaomi big winners
Another report corroborates this bad news for Huawei. The manufacturer has reportedly reduced its orders for components dedicated to its future Mate 40 and Mate 40 Pro, expected by the end of the year. An order drop of around 30%, which implies that Huawei would not have great confidence in its ability to properly sell its flagship. The fear of running out of certain components may also explain this decision.
The big winner in this story would be none other than Samsung. The South Korean manufacturer will be able to come and nibble the market share left by its competitor. However, Samsung would benefit above all from Huawei's lower power in Europe – chaebol is hardly present in the smartphone market in China. Within the Middle Empire, it is Xiaomi who could take advantage of the weaknesses of his compatriot.