According to analyst Ming-Chi Kuo, the next few months could be tense for Huawei. It evokes a disaster scenario and an exit of the Chinese brand from the smartphone market. However, the manufacturer seems to have mastered its transition.
Times are troubled for Chinese electronics giant Huawei, at the forefront of a war of geo-strategic domination between the United States and the Middle Kingdom. Blacklisted by the Trump administration, and therefore unable to obtain new Android licenses for its mobiles, the manufacturer could, in a – very – pessimistic scenario, exit the mobile industry in the coming months.
At least that is what Ming-Chi Kuo, a famous specialist in the mobile market, who is regularly quoted before Apple's keynotes, believes, but whose “predictions” have not always been true. In a report consulted by MyFixGuide, the analyst explains that as things stand now, Huawei's performance in the smartphone market may deteriorate. According to him, an optimistic scenario would see the market share of the brand plummet by about 30%, while the more pessimistic version would lead the company to exit the mobile industry.
Admittedly, in recent months the situation has not improved for Huawei in the Western world. While the company had one year of temporary licenses granted by the United States, these were not renewed as the presidential election approached across the Atlantic. Worse, Huawei and its suppliers can no longer use US technologies, which notably impacts the design of its Kirin mobile chips. TSMC is no longer taking new orders, and neither Qualcomm nor MediaTek are likely to be granted permission to work with the Chinese company.
55.8 million Huawei smartphones shipped
But beware of apocalyptic prophecies. Thus, according to the latest IDC figures, Huawei – which already benefits from a gigantic domestic market and permeable to patriotism – became the leading exporter of smartphones across the world in the second quarter of 2020. The brand would have shipped 55.8 million smartphones, ahead of Samsung and its 54.2 million units. The company would also have offset average performance internationally by strong growth in China.
Recall that Huawei has also promoted its own application store (AppGallery) instead of the Play Store. An alternative store that makes it possible to compensate a little for the loss of Google services, even if the use of a mobile under HMS (Huawei Mobile Services) is a little less easy. This ecosystem is however the subject of strong investments on the part of the brand, which will continue to feed it and integrate all the essential daily applications. In short, the strategy is to slowly emancipate oneself from the American technological tutelage …
Huawei's situation could finally change politically. On Tuesday, November 3, 2020, the date of the US presidential election, a new head could be propelled to the White House. What to relax Sino-American relations? The economic journal The Economist does not seem to believe it, citing a policy that risks being unchanged towards China if Democratic candidate Joe Biden wins.