Under the U.S. sanctions, Huawei has been hit hard, its operations have been inhibited and sales have declined. Recently, Huawei consumer business CEO Yu Chengdong in the WeChat circle of friends to expose the company’s current situation, just less than two years, the United States has four rounds of sanctions against Huawei, Huawei was forced to desperate, unable to ship.
On April 30, Huawei consumer business CEO Yu Chengdong complained in his circle of friends that the United States had imposed four rounds of sanctions on Huawei in less than two years, “one round more vicious than the other”, forcing Huawei’s consumer business to a desperate situation and unable to ship.
In this predicament, Yu believes that the domestic high-end market for Huawei’s phones and tablets has mainly been ceded to Apple, and the mid-range and low-end to OPPO, Vivo and Xiaomi; as for the overseas market, it has been ceded to Apple, Samsung and their domestic counterparts.
According to Apple’s latest earnings report, iPhone sales grew 65.5% year-on-year last quarter, with a whopping 87% growth in China. IDC and third-party organizations such as Canalys also recently released first quarter data, showing that the current top five are Samsung, Apple, Xiaomi, OPPO and vivo in that order, with Huawei falling out of the top 5 positions globally.
In China, Vivo’s shipments in the first quarter jumped 79% year-on-year to 21.6 million; OPPO followed with 20.6 million, up 65% year-on-year; Huawei shipped 14.9 million, slipping to third place; fourth is Xiaomi, shipped 13.5 million, up 75% year-on-year, and fifth is Apple, shipped 12 million ranked fifth, up 49% year-on-year.
According to a report released by market research firm Canalys, Huawei shipped 14.9 million smartphones in the first quarter of this year, a sharp drop of 50% from the same period last year.
Yu’s release confirms Huawei’s woes and the veracity of the market research report.
On April 28, Huawei informed that its revenue fell 16.5% to RMB 152.2 billion in the first quarter of this year compared to the same period a year earlier. This is the second consecutive quarterly decline in Huawei’s revenue, following an 11.2 percent drop in the fourth quarter of last year.
Huawei said the drop in first-quarter revenue was partly related to the sale of its smartphone sub-brand “Honor” in November last year.
Huawei’s overall global smartphone sales have shrunk after U.S. restrictions banned Huawei phones from installing Google apps and some other U.S. softwares, according to The Wall Street Journal.
Huawei once surpassed Samsung to become the world’s largest smartphone maker. The U.S. has long viewed Huawei as a security threat, accusing it of industrial espionage for Beijing and fearing that the Communist government may use Huawei equipment for surveillance.
In 2019, the Trump administration blacklisted Huawei, banned it from buying U.S. technology, cut off ties between Huawei and component suppliers and pressured allies to bar Huawei from participating in the construction of 5G networks, thereby isolating it and hitting it particularly hard in the semiconductor sector.
The Trump administration’s series of sanctions have virtually eliminated Huawei’s access to the most advanced semiconductors, and in the fourth quarter of 2020, Huawei’s cell phone shipments plummeted 42%. The current U.S. government has continued Trump’s sanctions policy against Huawei, tightening the terms of previously approved export licenses and banning the supply of Huawei’s 5G-related products.
In order to “live”, Huawei not only turned to pig farming, but also began to take orders for fish farming, and involved in the coal mining business. Recently, Huawei even participated in the competition of electric cars. At the Shanghai Auto Show in early April, Huawei unveiled a series of technologies for self-driving cars. Huawei is also launching its own smartphone operating system to compete with Google Android.
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