Huawei’s smartphone problems hit hard in China
we trade bans against Huawei have a very tangible effect on the sales of the home business. Counterpoint Research now estimates that Huawei’s market share in China fell to 16% in January 2021. For the background, the tech giant held 41% of first quarter 2020. Even though the metrics aren’t completely comparable (and Counterpoint is shy about the numbers), there has clearly been a big drop.
Huawei’s decision to sell the Honor brand played a role, but Counterpoint attributed the drop largely to US restrictions. With components like 5G processors and modems in short supply, Huawei is focusing on high-end, low-volume phones like the Mate 40 Pro to get the most out of its limited stock.
The disgrace has already changed the dynamics of the Chinese market. Oppo became the country’s top brand for the first time in January, claiming a 21% stake, while its sister brand Vivo was not far behind at 20%. Huawei was tied with Apple and Xiaomi at 16% each.
The future is not bright for Huawei. Analysts expect it to continue its decline throughout 2021. The competition is not outdone either. Oppo to launch flagship product Find X3 phones on March 11, and increased sales of more affordable devices with the Reno 5 and A series. Xiaomi, meanwhile, recently launched the Mi 11. While Honor may continue the spirit of Huawei’s work, it is evident that Huawei itself faces grim prospects in the months to come.