Technology

Huawei still dominates telecom equipment market despite US sanctions


Despite the impact of US sanctions, Huawei still leads the global telecommunications equipment market.

According to market research results in the first 3 quarters of 2021 by market research and analysis company Dell’Oro (USA), the US’s continuous efforts to curb telecommunications equipment supplier Huawei of China has begun to impact the company’s results, especially in markets outside of China.

Huawei still dominates the global telecommunications equipment market despite US sanctions

Currently, Huawei continues to dominate the global telecommunications equipment market, still roughly as large as Ericsson and Nokia combined, said Dell’Oro analyst Stefan Pongratz. Cumulative revenue for the telecommunications equipment market is about $100 billion.”

According to Dell’Oro, the market share of the world’s top 7 telecommunications equipment suppliers remains relatively stable, accounting for about 80% of the global market share.

Of which, Huawei alone accounts for about 29% of total global revenue, Nokia and Ericsson each account for about 15% of total revenue; the rest belongs to companies like ZTE (11%), Cisco (6%), Samsung (3%) and Ciena (3%).

However, according to Dell’Oro, compared to 2020, Huawei is gradually losing its position. In the context of the US asking telecommunications companies not to use Huawei telecommunications equipment in their 5G networks for security reasons. Along with that, other governments have also made moves to exclude or limit Chinese suppliers, including the UK, last year.

Meanwhile, Dell’Oro sees ZTE and Samsung gaining momentum year-to-date, with Samsung gaining a percentage share in the radio access network equipment (RAN) business. ).

Overall, the telecommunications equipment market posted nearly double-digit growth year-on-year in the first nine months of the year. Dell’Oro estimates total telecommunications equipment sales to grow 9% year-to-date year-over-year, with 6% growth in the third quarter.

Huawei’s leadership in the telecommunications equipment market contrasts with its consumer smartphone business, which has been affected by US sanctions and was previously placed on the Commerce Department’s Entity List. commercial in 2019.

Huawei held a 17% share of the global smartphone shipments in Q1 2020 but declined rapidly after Q2 2020, dropping to just 4% in Q1 2021, according to Counterpoint Research.

In response to US sanctions, Huawei had to sell its low-cost smartphone brand Honor so that the brand could survive and have access to key components without being affected. by the US ban.

As a result, in August, Honor became the third largest smartphone brand in China in the low-mid-range segment with 15% market share. In October, Apple rose to No. 1 in China with 22% of the smartphone market share in the country, surpassing Chinese brands such as Vivo, Oppo and Huawei.

Huawei’s third-quarter results showed a tough one in the consumer business as overall sales fell 38%. Huawei did not release its quarterly results by business segment, but the drop in revenue was attributed to the consumer business.

In a statement, Huawei Rotating Chairman Guo Ping said: “Although our business-to-customer (B2C) business has been significantly impacted, our business performance Our business-to-business (B2B) segment remains stable.”

In the first three quarters of this year, Huawei still posted revenue of $71.5 billion with a net profit margin of 10.2%. Meanwhile, competitors in the field of network equipment such as Ericsson and Nokia only achieved revenue of 17.78 billion USD and 17.85 billion USD respectively.

In terms of telecommunications equipment market, Dell’Oro said the positive momentum in the third quarter of 2021 was driven by strong growth of RAN equipment and broadband access including increased demand for mobile devices. 5G and fixed radio access.

According to Dell’Oro, near-term growth will slow in the face of the pandemic’s resurgence and less resilient supply chains. The company forecasts telecommunications equipment market growth will reach only 2% in 2022, down from 8% in 2021.

Phan Van Hoa (according to Fiercewireless)

Alibaba leads the cloud computing market share, far ahead of Huawei

Alibaba leads the cloud computing market share, far ahead of Huawei

Alibaba still holds the top position in the cloud computing market in the face of speculation that Huawei will usurp the throne before.

.

Leave a Reply

Your email address will not be published. Required fields are marked *