Telecom: Huawei's market share collapses in China
5G technology specialist and the world's second-largest cellphone maker, Huawei is faltering.
In the last quarter of 2020, Huawei's sales in China were down 44% year-on-year and its market share in the country fell to 22%, from 38% at the end of 2019. REUTERS - TINGSHU WANG
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3 min
2020 is a year to forget for Huawei as the market share of the Chinese telecommunications giant collapsed in the local smartphone market in the last quarter, according to figures released Thursday by the research firm Canalys.
This is the consequence of US sanctions against the Chinese giant.
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5G technology specialist and the world's second-largest cellphone maker, Huawei is faltering.
The effects of
US sanctions
against him are being seriously felt even in the Chinese market.
In the last quarter of 2020, Huawei's sales in China were down 44% year-on-year and its market share in the country fell to 22%, from 38% at the end of 2019. “
This is probably about the most difficult period for Huawei, which can no longer even fulfill orders on its domestic market
”because of US sanctions, notes Canalys analyst Nicole Peng.
The only consolation, Huawei retains its place as the leading seller of smartphones in the local market, closely followed by two other Chinese manufacturers, Oppo and Vivo.
The American Apple is fourth and achieves "
its best performance in China for years
", according to Canalys.
Over the whole of 2020, the group maintains a comfortable lead over its competitors in China.
Huawei still blacklisted
Accused of potential spy for Beijing, which the group denies, Huawei was blacklisted under
the Trump administration
two years ago.
One way to prevent him from acquiring American technologies essential to his phones.
Since September, Huawei can for example no longer equip its high-end devices with new Kirin chips, which the group does not have the capacity to replace internally.
The firm also does not have access to updates to Android, the operating system of the American Google, which is ultra dominant on phones.
The Chinese giant should remain in Washington's sights as the White House said on Wednesday that the Biden administration will work to protect US telecommunications networks from "
untrustworthy suppliers
" like Huawei, who threaten US national security. .
But the day before, Gina Raimondo, chosen by Joe Biden to head the Commerce Department, had refused to commit to keeping Huawei on the blacklist.
Struggled by US sanctions, Huawei was forced to sell its
entry-level
smartphone
brand, Honor,
in November
.
Earlier this week, Huawei denied wanting to separate from the rest of its
smartphone
activities
.
(
with AFP
)
►
To read: Despite Trump, Huawei becomes the world leader in smartphones
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