Some reports have indicated that Huawei Technologies captured a record 42% of China’s smartphone market during the 3rd-quarter. It is due to the local consumers rallied behind it after U.S sanctions leaving Apple to languish towards the bottom of the pile. Apple’s market share in China decreased to 5% from 7% in the same quarter. The July-September quarter marked the weakest sales of iPhones in China during the last 5 years. The vice president of mobility at Canalys, Nicole Peng said that with shipments likely down more than a quarter. Concerns regarding slowing iPhone sales in China have dogged Apple for many quarters even as the global smartphone market has slowed and Huawei has hit record sales in the country.
Huawei is the world’s No. 2 smartphone manufacturer and it was banned by the United States in the month of May from doing business with American companies. It significantly disrupted its ability to source key parts. The company was then granted a reprieve until November but the blacklisting pushed up patriotic purchases of its smartphones in China. Huawei’s advantage is expected to grow further with the expected rollout of the super-fast 5G network in China in the coming months. Peng said, “Huawei is in a strong position to consolidate its dominance further amid 5G network rollout, given its tight operator relationships in 5G network deployment, and control over key components such as local network-compatible 5G chipsets”.
Peng added, “This puts significant pressure on Oppo, Vivo, and Xiaomi, which find it very hard to make any breakthrough”. It is noteworthy that Oppo, Vivo, Xiaomi, and Apple together accounted for 50% of the market in the 3rd quarter, down from 64% a year earlier. Last week, Huawei said that it had sold at least 200 million mobile phones in the world in 2019. The profits of the company have remained resilient and revenue jumped 27% in the 3rd quarter. Canalys said that the Chinese smartphone market contracted by 3% in the 3rd quarter, and Huawei smartphones made up 41.5 million of the 97.8 million shipped in the same period.