huawei‘s cell phone market share fell to third in mainland China in January.
Market research firm Counterpoint Research has released a report saying that Huawei’s cell phone market share fell to third place on the mainland in January this year, indicating a growing chip shortage for Huawei phones under U.S. sanctions.
The report released by Counterpoint Research on March 5 shows that in January this year, the top smartphone market share on the mainland was OPPO‘s, which reached 21 percent, the first Time the phone was ranked first, with monthly sales up 33 percent sequentially and 26 percent year-on-year. Second place went to Vivo, with a 20% market share. Huawei’s market share was 16 percent, ranking third.
The report attributed Huawei’s market share decline to sanctions by the U.S., after which key cell phone components were in short supply and it was also unable to source 5G mobile phone-related parts. Huawei had to focus on the high-end phone market and also sold its mid-range Honor phone brand, leaving Huawei in a vacuum in the mid-range segment.
At the same time, cell phone dealers in China have been reducing Huawei’s business and shifting to other cell phone brands, and after Huawei was sanctioned by the U.S., other cell phone brands on the mainland are dividing up Huawei’s market.
Because Huawei plagiarized U.S. technology and installed backdoors on equipment, the former U.S. President Donald Trump‘s administration issued a sanctions order prohibiting companies that use U.S. technology from providing products and software technology to Huawei. The chips for Huawei’s 5G phones were out of stock as a result. The outside world expects Huawei’s chip inventory to be depleted in the first half of this year, when Huawei’s cell phone business will have to stop production and Huawei phones will be withdrawn from the market.
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