Clients store for cell phones at a telecom mall in Xuchang, Central China’s Henan Province on January 31, 2021. Photograph: VCG
Chinese language telecom large Huawei noticed a considerable drop in each smartphone shipments and market share in China market in 2020, following a tricky yr of US authorities’s strangle on semiconductors provide, permitting US rival Apple to rise to replenish the void.
Below the US’ relentless assault, Huawei noticed a drop in market share in China from 38.5 % within the fourth quarter of 2019 to 25.1 % within the fourth quarter of 2020, the one one of many prime 5 smartphone makers in China whose share declined, an Worldwide Knowledge Corp (IDC) report confirmed on Tuesday.
Trade specialists mentioned that Huawei’s uncommon market share decline mirrored the US block on chips that affected the provision chain of the corporate’s high-end cellular collection.
There have been 86.4 million smartphones shipped in China within the fourth quarter of 2020, virtually flat year-on-year, with Huawei being the one smartphone maker among the many prime 5 that didn’t develop. The others had been Xiaomi, Oppo, Vivo and Apple.
Though there could possibly be many causes for the modifications in market share, Ma Jihua, a veteran business analyst, informed the International Instances on Tuesday that the US chip crackdown on the Chinese language know-how firm created a provide chain disaster for Huawei and left area for others, particularly high-end cellular producer Apple, to seize extra share.
Apple was the one producer that achieved development in China final yr, with smartphone shipments up 10.1 %, IDC reported.
Apple, which had a 34.7-percent market share development within the fourth quarter in China, towards Huawei’s 34.5 %, additionally seized the highest spot within the international market with a 23.4-percent share within the fourth quarter of 2020.
Apple launched its 2021 fiscal first-quarter outcomes on January 27, with income exceeding $100 billion for the primary time and internet revenue of $28.755 billion, up 29 % year-on-year. China was a very robust performer, with income from the higher China area at $21.313 billion, up 57 % year-on-year.
“Apple misplaced market share to Huawei in 2019, and Huawei’s weakened competitiveness final yr left it with just one viable competitor to problem,” Liang Zhenpeng, senior business analyst informed the International Instances. Apple’s launch of a 5G cellular got here later but in addition helped it to fill a niche as its main market embraced superior web connectivity.
Nevertheless, Apple’s development tempo is likely to be laborious to maintain at an equal excessive degree this yr when different Chinese language cellular producers reminiscent of Xiaomi and Oppo are additionally concentrating on the high-end smartphone market, specialists mentioned.
“Apple, as an vital high-end cellular producer, will see unprecedented competitors from a couple of Chinese language manufacturers,” mentioned Ma.
Liu Bo, vp of OPPO, gave a speech on Monday wherein the corporate set increased targets for its development in 2021, together with the great improve of the corporate’s channels and partnership, media stories mentioned.
In the meantime, Huawei’s difficulties could also be solely momentary.
“As soon as Chinese language 5-nanometer chips could be produced, the entire market will change,” mentioned Ma, noting that he anticipated such chips could possibly be out on the finish of this yr.