As analysts worry about the challenges facing Huawei to launch its flagship smartphones in Europe, it turns out that the firm’s Chinese sales – surprise! – are booming. According to new data from research firm Canalys, Huawei’s smartphone shipments in China surged to 37.3 million in the second quarter, up 31% year-on-year. That pushed its market share up to 33%, from 25% in the same period last year.
This being a zero-sum game, Huawei’s competitors saw their smartphone shipments in China fall 6% in the second quarter. Applewas a big decliner, down 14%,but it was the other Chinese brands that felt the crunch hardest: Oppo, Vivo and Xiaomi tumbledby 18%, 19% and 20%, respectively.
There is no guess as to why this happened. Huawei, brilliantly, played the nationalism card. Buying their phones has become a patriotic act of duty in the context of the US-China trade war. But they executed well, also. “Huawei’s core strategy remains investing in aggressive offline expansion, and luring consumers from rival brands, while unleashing a wave of marketing spend to support new channels and technologies,” said Canalys analyst Mo Jia.
Huawei Technologies has announced the release of its first 5G smartphone for commercial use in Shenzhen. The Huawei Mate 20 X (5G), priced at RMB6,199 (about US$900), will be available from August 16 and pre-orders will open from July 26.
Continue reading Huawei launches 5G handsets
Huawei is preparing for a 40% to 60% drop in international smartphone shipments and exploring options including pulling the latest model of its marquee overseas label, the Honor 20, according to Bloomberg.
The device begins selling in parts of Europe on Friday, including France and the U.K., but executives are monitoring the launch and may cut off shipments if it sells poorly as expected, said the news agency.
Huawei sales and marketing managers are internally charting a drop in volumes of anywhere between 40 million to 60 million smartphones this year, the people said. That’s a big chunk of an international business that in 2018 accounted for almost half of the 206 million phones it moved.
Hundreds of U.S. companies that supply Huawei Technologies have been contacting the government for exemptions to the ban on selling their products to the Shenzhen-based tech giant, according to U.S. Commerce Secretary Wilbur Ross.
Caixin Global reported Tuesday that U.S. chipmaker Intel Corp. has been pushing the government to allow it to continue selling components to Huawei. Google, whose android mobile operating system has been used by Huawei in its popular smartphones, has also been trying to convince the U.S. government to exempt it from the ban, the Financial Times reported last week.
When Ross was asked by Caixin for confirmation about US companies seeking exemptions from the government, Ross said: “Many of the current suppliers to Huawei have been in touch with us in one form or another. Those that are not central to national security interest, we will tend to look favorably upon,” he said.
The world’s largest smartphone maker, Samsung, is cutting jobs at its last phone manufacturing facility in Huizhou, reports Caixin Global.
The layoffs at the plant, which opened in 1992, are being carried out on a voluntary basis. Employees agreeing to leave with compensation will need to sign up by June 14. It is unclear how many people will be affected by the job cuts.
It has been a sharp turnaround. In 2017, the factory hired more than 6,000 workers to produce 63 million smartphones, about 17% of Samsung’s global production that year. The closure follows the shuttering of its smartphone plant in Tianjin in December, and the one in Shenzhen, which closed in April last year.
Shenzhen-based tech giant Huawei was kicking the proverbial butt of its chief American competitor in smartphones before the US decided to place it on a blacklist, latest data from tech research firm Gartner shows.
In Q1, Huawei smartphones took 15.7% of the global market, narrowing the lead of #1 maker Samsung (19.2%) and ahead of Apple, whose iPhone slipped further behind in third place (11.9%). Huawei shipped 58.4 million units, up from 40.4 million in Q12017, thanks to growth in Europe (+69%) and Greater China (33%). Apple’s fell by 9.5 million units in the same YoY comparison.
The other two Chinese smartphone manufacturers, Dongguan-based OPPO and Vivo, ranked fourth and fifth, slightly increasing their market share.
Read more (in Chinese).