Chinese phones tear through Huawei’s pie

12/01/2020 01:20 GMT + 7

Xiaomi, Oppo, Vivo are taking drastic moves to gain market share from rival Huawei that is building because of the US ban.

Huawei recently sold its low-cost smartphone brand Honor to protect Honor’s supply chain from US sanctions. At the same time, its country rivals are also seeing opportunities in the mid to high end market. In August, a Huawei official said the company was unable to manufacture chips used in its flagship because of the US embargo.

Derek Wang, the head of manufacturing at Realme, said that whether it is Xiaomi, Oppo or Vivo, they all raised their forecast for 2021. “They believe that the sanctions against Huawei will hurt the market. more or less of the company’s international market and they may want to gain market share from Huawei.

Founded in 2018, Realme doubled its smartphone production this year, to 50 million. Realme has built a solid foundation on the low-cost segment in Southeast Asia and India. The company is targeting the European and Chinese markets next year in an effort to enter the high-end market, regardless of Huawei’s situation.

In August, the US Department of Commerce further tightened the ban on Huawei from stripping the right of essential technology to the mobile division. In the first half of this year, Huawei overtook Samsung as the world’s largest smartphone maker before third-quarter orders fell 23% to 51.7 million units.

According to research firm Canalys, Huawei still holds 14.9% of the global smartphone market share this quarter, followed by Xiaomi (13.5%), Apple (12.4%), Vivo (9.1%).

Observers confirmed a sharp increase in orders from smartphone manufacturers. In particular, Xiaomi seems most optimistic when it orders enough to produce 100 million phones from the fourth quarter of 2020 to the first quarter of 2021, up 50% from the prediction before August. also increased by 8% in the same period, 90 million and 70 million units respectively. In contrast, Huawei’s orders fell 55% to 42 million units.

According to a Reuters source, Xiaomi is trying to get close to Huawei distributors in Southeast Asia and Europe in hopes of winning exclusive deals. The company is also actively targeting Huawei’s high-end segment at home.

Companies may be too optimistic about their goals, some analysts say. However, Derek Wang shared that they stockpiled components partly because of a production disruption caused by Covid-19 earlier this year. In addition, Huawei has also increased purchasing, affecting the supply chain of competitors.

Supply chain project manager Paul Weedman commented that the race to secure the supply is getting rushed with prices skyrocketing recently. Buying enough LCD screens, even with tablets, is a lot more difficult.

Du Lam (According to Reuters)

Nham Chinh Phi hopes Honor's cheap smartphone will surpass Huawei

Nham Chinh Phi hopes Honor’s cheap smartphone will surpass Huawei

Huawei founder Nham Chinh Phi expressed his hope that the popular smartphone brand Honor that the company just sold will surpass Huawei in the future.


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