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Huawei sanctions Q3 smartphone shipments plummeted



On April 1, 2020, a woman wearing a mask to prevent COVID-19 coronavirus speaks on a smartphone outside a shopping mall in a Huawei store (back) outside Beijing. (Photo taken by NICOLAS ASFOURI/AFP) Provided by NICOLAS ASFOURI/AFP via Getty Images)

Nicolas Asfouri | AFP | Getty Images

New data shows that as US sanctions continue to hurt the Chinese technology giant, while domestic rival Xiaomi managed to benefit from it, Huawei’s mobile phone shipments plummeted in the third quarter.

According to a report released by Canalys on Thursday, Huawei shipped 51

.7 million smartphones in the three months to the end of September, a year-on-year decrease of 23%.

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

The Canalys report shows that overall, global smartphone shipments reached 348 million units in the third quarter, a year-on-year decrease of 1%, but an increase of 22% over the second quarter.

After receiving this title in the second quarter of this year, Huawei lost its crown as the world’s largest smartphone manufacturer.

Samsung surpassed Huawei. Canalys said that the Korean giant’s shipments totaled 80.2 million units, an increase of 2% year-on-year.

As part of the trade war with China, the United States launched a campaign against Huawei. Huawei is regarded as one of China’s national champions and the key to the country’s ambitious next-generation technologies such as 5G (the next-generation mobile network that provides ultra-high-speed data speeds).

Washington has imposed a series of sanctions on Huawei, and the sanctions continue. Last year, Huawei was included in the US blacklist, known as the “Entity List.” This restricts American companies from doing business with Chinese giants. This means that Huawei is no longer allowed to use licensed Google Android software on its smartphones.

In China, Google services are effectively blocked anyway, which is not a big deal. But in international markets that are critical to Huawei’s growth plans, consumers have become accustomed to using Google apps. Huawei’s latest flagship smartphone has not yet been licensed by Google Android, which is hurting the company’s device sales.

According to another IDC report released on Thursday, Huawei’s decline in the international market continued, but the company’s shipments in China also fell by 15% in the third quarter.

Further uncertainty about the future of Huawei’s smartphone business still exists. In May, Washington revised a rule aimed at cutting off Huawei’s links with key chip supplies. Taiwan Semiconductor Manufacturing Company (TSMC), the Taiwanese company that produces Huawei’s smartphone chips, is no longer allowed to ship these components to the company.

Xiaomi grabs Huawei shipments

At the same time, Chinese rival Xiaomi is gradually getting out of trouble.

Canalys analyst Mo Jia said: “Xiaomi was invaded and executed to seize Huawei’s shipments.” “There is symmetry in the third quarter. Xiaomi added 14.5 million units and Huawei lost 15.1 million units. In Europe, a key battlefield, Huawei’s shipments have fallen by 25%, while Xiaomi’s has increased by 88%.”

Canalys said that Xiaomi’s smartphone shipments totaled 47.1 million units in the quarter ended September, an increase of 45% year-on-year. It became the third-largest smartphone player by market share for the first time, surpassing Apple, which ranked fourth, and sold 43.2 million iPhones in the same quarter.

IDC’s numbers are slightly different. The research firm’s data shows that Apple sold 41.6 million iPhones in the third quarter of 2020, a year-on-year decrease of 10.6%. IDC said that this decline can be expected due to the delay in the launch of the next-generation iPhone 12 series.

The Cupertino Giant announced the iPhone 12 series on a date after mid-October, some of which will not be available until next month.

IDC said: “In any case, the iPhone 11 series performed very well, accounting for most of Apple’s sales, followed by SE devices.” “Looking ahead, we expect Apple to achieve growth in the next few quarters, mainly because The early demand for the iPhone 12 was strong, coupled with the strong discounts offered by major carriers (especially the US).”


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