Trump is no longer in the White House, but Huawei really has nothing to celebrate. The new Biden administration will not give him a freebie. And especially the sales of smartphones of the Chinese manufacturer are in free fall. The Trendforce firm anticipates that the Shenzhen firm will only sell 45 million smartphones in 2021, against no less than 170 million last year. The fall would be vertiginous: of the order of 73%.
In this rather bleak context, Reuters says Huawei is discussing with a consortium of Chinese companies to sell its two high-end brands, the P and Mate series. Even if the Chinese manufacturer denied in the wake, “crumors have no legitimacy. Huawei is not planning anything like that. We remain fully engaged in our smartphone business “, the information seems relevant and credible.
Divest the smartphone business
“The effect of US sanctions is now catastrophic for Huawei, notes Neil Mawston, Strategy Analytics Analyst. Their market share in the third quarter of 2019 in Europe was 18%. For the same period in 2020, it is only 8%. And it will drop to 2% in 2021. “The Chinese manufacturer seems to have chosen, faced with the catastrophic results of sales of smartphones, to separate its activities
telecom of its smartphone business.
Last fall, Huawei sold its subsidiary Honor which sold smartphones at affordable prices for young adults. The sale had raised around $ 15 billion for the manufacturer. And without the embarrassing shadow of Huawei, Honor has now announced that it had succeeded in making agreements with the American companies Intel and Nvidia to supply itself with components … while Huawei can no longer produce its current products. Kirin chips which he is starting to lack for his smartphones. If the information from Reuters is confirmed, Huawei would sell its smartphone business to a consortium in Shenzhen, which would have a good chance of having access to American suppliers.
The maneuver would reduce Huawei’s presence in manufacturing to nothing. “It’s going to be complicated to continue with smartphones for Huawei, confirms Thomas Husson, analyst for Forrester. They managed to maintain good sales after the start of the sanctions thanks to a nationalist feeling in China, but now it is very complicated in Europe. . ” If the Shenzhen group continues its smartphone activity, its sphere of influence would merge with that of China: certain countries in Africa and the Middle East and Southeast Asia.
Screenshot of the message posted by Antoine Griezmann on December 10 on Instagram.
Symptomatic of Huawei’s loss of influence in France, Antoine Griezmann suddenly broke his contract with the equipment manufacturer in early December. The French footballer has been the face of the Chinese brand since 2017. The player has distanced himself following an article in the Washington post claiming, according to an internal Huawei report, that the company had worked in 2018 to develop facial recognition software capable of estimating age, gender and ethnicity and providing “alerts to the presence of Uighurs “.
To raise its head in spite of everything, after the fanfare of its flagship store opening just before the pandemic in Paris at the start of 2020, Huawei has increased its releases and announcements in connected objects, as well as in the laptop market. . Clever, the strategy did not however make it possible to compensate for the fall of the dragon in smartphones. Contacted on multiple occasions to answer questions on these subjects, Huawei did not respond to our requests.