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U.S. sanctions on Huawei hurts China's smartphone market, report says

Huawei's market share declined, although it still retains the top spot in China's smartphone market   | Photo Credit: Reuters

U.S. sanctions on Huawei, restricting chip supply to the Chinese company, hurts China's smartphone shipments.

“Huawei was forced to restrict its smartphone shipments following the August 17th U.S. sanctions, which caused a void in channels in Q3 that its peers were not equipped to fill," data analytics firm Canalys said in a post.

"The market decline was expected."

The U.S. sanctions restrict any foreign semiconductor company from selling chip sets produced using U.S. technology to Huawei.

The smartphone market in Mainland China dropped 15% to 83 million units in the third quarter from 97.7 million units in the same period a year ago.

Huawei's smartphone shipments tumbled around 18% to 34.2 million units from 41.5 million units during the same period in the previous year. This is Huawei's first decline in shipments in six years.

Although it still retains the top spot in China's smartphone market, its market share declined to 41.2%, from 44.3% in the last quarter.

Xiaomi took the fourth spot after Vivo and Oppo, and is the only vendor in the top five that grew 19% to ship 10.5 million units.

Shipments of all other players in the top five including Apple dropped compared to last year.

However, Canalys says pent-up demand for Apple's new 5G-enabled family will be strong, as most smartphones in China are now 5G-capable.

"iPhone 12 series will be a game changer for Apple in Mainland China," said Nicole Peng, VP - Mobility at Canalys.

Canalys expects new product launches from Huawei's rivals can intensify competition in 5G smartphones.

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Printable version | Mar 1, 2021 12:34:16 PM | https://www.thehindu.com/sci-tech/technology/us-sanctions-on-huawei-hurts-chinas-smartphone-market-report-says/article33002609.ece

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