Smartphones: Huawei sales begin to fall in France – 01net.com

Donald Trump going to kill Huawei? Manhandled for many months by the American president, the most famous of Chinese high-tech companies is currently going through a complicated, not to say nightmarish, period.
Even though Huawei's latest products border on excellence (like the P40 Pro + that we recently tested), the United States continues to tighten its sanctions against the company and will soon deprive it of the chips essential to the design of smartphones. These constraints, in addition to Huawei's software problems, are increasingly suffocating the company.

Read also : Huawei soon to be completely out of components?

Until then spared in France (Huawei continues to deny the publications relating the fall in its sales and its deep problems), the Chinese manufacturer is beginning to suffer the consequences of American sanctions. 01net.com has been able to consult several detailed reports on smartphone sales in France since the start of the year, confirming a start of sluggishness. To protect our sources, we have decided to round off some of the values ​​presented in this article.

Sales down 21%

For several months, speculations on the fall of Huawei have been rife. Reports, like those from Canalys, often relayed by Xiaomi, announce that the company has lost 70% of market share. It's wrong. This data does not represent actual brand-by-brand sales, which you will see are still strong.

From January to June 2020, Huawei sold more than 1,306,000 smartphones in France. This represents 19.2% market share and allows the Chinese brand to keep its third place behind a slightly declining Samsung and an Apple in great shape.
These figures, which one might assume good, are lower than those for the same period in 2019 when Huawei had sold more than 1,672,000 smartphones, which then represented 21.3% of the French market.
Certainly, the coronavirus has been there, but it does not explain everything. Xiaomi, for its part, has increased from 3.2 to 7.7% of the market share, recovering a large part of Huawei's sales.

Among operators, Huawei has gone from 23.7% to 20.9% of market share between the first half of 2019 and the first half of 2020. Here, it is Apple, Xiaomi and Oppo who share the crumbs.

5e76f8fa493022188beea5e2a5368 - Smartphones: Huawei sales begin to fall in France - 01net.com

Paradoxically, the month of June was very good for Huawei (+ 27% compared to last year). The numerous promotion / destocking operations carried out by the company have enabled it to boost its half-yearly market share.

On the high end, Huawei disappears

Revealing Huawei's emerging difficulties, market share actually hides the tip of the iceberg: revenue. Huawei France's smartphone activity, which reported € 538.6 million in the first half of 2019 (that is to say twice less than an Apple or a Samsung) only reports, everything is relative of course, 361.9 million euros in the first half of 2020. This 32% drop in turnover is colossal. The Chinese brand suffers more than Samsung (-17.8%) and Apple (-2.49%). Xiaomi, for its part, posted an insolent growth of 105%. Let’s qualify there however, its 61.9 million euros of income are far from those of Huawei.

To understand this phenomenon, we compared smartphone sales by price brackets. The addition is salty for Huawei, the Chinese brand, whose high-end smartphones represented 6.6% of the device market of over 800 euros in 2019 now weighs … less than 1%. With the exception of the 100-200 euro sector, where Huawei has gone from 24 to 28% market share, the rest of the Chinese empire is falling. Gradually, consumers seem to be turning to other brands.

Less than 10% at Christmas?

According to our information, Huawei has informed some of its most important partners of a significant drop in sales in the coming months as its stocks of P30 Pro with Google services start to drain.
The figure of 10% market share has been communicated to us, which would mean that Huawei expects to sell half as much in the second half of 2020. Also according to our information, the competing brands of Huawei would welcome this situation. Some of them have even started to discuss with the operators to recover the sales locations currently reserved for high-end mobiles of the brand.

This completely unprecedented situation risks reinforcing the duopoly of Samsung and Apple, now alone on the high end. In the long run, Huawei's fall could hurt the market and innovation. Xiaomi, often presented as the replacement for Huawei, owes its success only to the entry level and only progresses very little above 400 euros.



Categories Tech

Leave a Comment