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Home / Business / Q3 Huawei smartphone shipments declined as US sanctions continued to take effect

Q3 Huawei smartphone shipments declined as US sanctions continued to take effect



A woman wearing a mask as a precaution against the COVID-19 virus talks on her smartphone outside a shopping mall passing by a Huawei store (back) in Beijing on the 1st April 2020. (Photo by NICOLAS ASFOURI / AFP) (Photo by NICOLAS ASFOURI / AFP via Getty Images)

Nicolas Asfouri | AFP | beautiful images

HANGZHOU, China ̵

1; Huawei phone shipments plummeted in the third quarter as US sanctions continue to affect the Chinese tech giant, while domestic rival Xiaomi has been trying to capitalize on it, new data shows.

In the three months through the end of September, Huawei shipped 51.7 million smartphones, down 23% from the same period last year, according to a Canalys report released on Thursday.

Another company, Counterpoint Research, said on Thursday that Huawei shipped 50.9 million smartphones, down 24% from the same period last year. According to Counterpoint, the Chinese company’s market share fell to 14% from 18% in the third quarter of 2019.

Overall, for the third quarter, worldwide smartphone shipments totaled 348 million units, down 1% year-on-year, but up 22% from Q2, the Canalys report showed.

Huawei has lost its position as the world’s largest smartphone maker, after winning the title in the second quarter of the year.

Samsung overtakes Huawei. Canalys said the South Korean giant’s shipments reached 80.2 million units, up 2% from the same period last year.

The US has waged a campaign against Huawei as part of a trade war with China. Huawei is considered one of China’s national champions and is key to its ambitions in next-generation technologies such as 5G, the next-generation mobile network that offers super data speeds. fast.

Washington has imposed a number of sanctions on Huawei, which are continuing to do damage to them. Last year, Huawei was put on a blacklist by the US known as the Entity List. This has limited American companies from doing business with the Chinese giant. That means Huawei is no longer allowed to use licensed Google Android software on its smartphones.

This isn’t a big deal in China, where Google services are effectively blocked. But in international markets, crucial to Huawei’s growth plan, consumers are accustomed to using Google apps. Huawei’s newest flagship smartphone doesn’t have a licensed Google Android, and that hurts its device sales.

The decline in international markets is continuing for Huawei, according to another IDC report released Thursday, but the company also saw a 15% drop in shipments in China in the third quarter.

There is still plenty of uncertainty about the future of Huawei’s smartphone business. In May, Washington revised a rule aimed at cutting Huawei off from critical chip supplies. Taiwanese company TSMC, the maker of Huawei’s smartphone chips, is no longer authorized to deliver those components to the company.

Xiaomi detained Huawei shipments

Meanwhile, its Chinese rival Xiaomi is continuing the sluggishness.

“Xiaomi has acted very aggressively to capture shipments from Huawei,” said Mo Jia, an analyst with Canalys. “There was symmetry in the third quarter, when Xiaomi added 14.5 million units and Huawei lost 15.1 million units. In Europe, a critical battlefield, Huawei’s shipments fell 25%, while Xiaomi’s increased 88. %. “

Canalys said Xiaomi’s smartphone shipments in the quarter ended September reached 47.1 million units, up 45% from the same period last year. It became the third largest smartphone maker by market share for the first time, surpassing Apple, which came in fourth place and shipped 43.2 million iPhones in the same quarter.

IDC’s number is a bit different. Apple shipped 41.6 million iPhones in the third quarter of 2020, down 10.6% year-on-year, according to research firm data. The decline is expected to be due to the delay in the next generation of iPhone 12, IDC said.

The Cupertino giant announced the iPhone 12 range on a later date than usual in mid-October, with some devices not available until next month.

“Regardless of the iPhone 11 line that did a very good job, contributing the bulk of Apple’s sales, followed by the SE device,” said IDC. “Looking ahead, we expect Apple to grow in the coming quarters with strong early demand for the iPhone 12 coupled with strong buying and selling incentives across major carriers, especially in the US”


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