2019 is a record year in terms of sales for Huawei smartphones despite the efforts of the Donald Trump administration to weaken the tech corporation from China.
Gene Jiao, Huawei’s Middle East and Africa consumer products division, said at the Mate 30 Pro 5G launch event that the company sold more than 240 million devices last year, and sales were also high. up to 18% over the same period last year.
The second largest smartphone manufacturer in the world sold 206 million units in 2018.
Industry analysts say the company faced the biggest challenge in overseas smartphone markets, outside of China, last year, due to the absence of Google Mobile Services and this year, it will Continue to fall into the same situation.
Specifically, according to Shobhit Srivastava, an analyst at Counterpoint Research, Huawei’s tremendous revenue at home in the past year has exceeded the need to offset revenue in overseas markets. And while the smartphone market in China is now saturated, Huawei’s increased sales of products in its home market through distributors has led many of China’s major distributors to gain affection and support. Huawei’s patriotism.
Because of these factors, this analyst said Huawei will grow stronger, while other Chinese rivals are affected.
According to Counterpoint Research’s statistics in the third quarter of 2019, Huawei had a 63% growth compared to the same period last year in the Chinese market, while other manufacturers such as Vivo decreased by 17%, Oppo fell by 20%. %, and Xiaomi dropped 38% – even Apple dropped 14%.
In the second quarter, Huawei achieved a 23% growth year-on-year, while rivals such as Vivo fell 5%, Oppo fell 7%, Xiaomi fell 15%, and Apple fell 29%.
Counterpoint Research will soon publish the fourth quarter data in the near future, let’s wait and see.
Fiercer competition from Chinese rivals
In the group of GCC countries (Gulf Cooperation Council), the situation is not much different from other foreign markets, and Huawei has lost their market share since the second quarter of last year.
Nabila Popal, senior research manager at International Data Group (IDC), said it was unfortunate that the brand faced a decline after so much success in the region and gained momentum. The growth rate was constantly in terms of market share, to the point that it almost directly competed with Samsung in the first quarter of last year.
According to IDC, in the first quarter of last year, Samsung had a market share of 32.6%, while Huawei accounted for 25.7%, and Apple accounted for 19.7%.
In the second quarter, Samsung reached 41%, followed by Huawei at 21% and Apple at 19%.
In the third quarter, Samsung reached 45.7%, Apple 18%, and Huawei fell 17%.
“Huawei is likely to continue to lose market share in the GCC region in 2020, because there is no feasible solution to solve the Huawei-Google problem. Although Huawei intends to launch its own operating system – Harmony OS, it will take a considerable amount of time for consumers to feel confident returning to this brand (and with the new operating system) “- Popal said.
Moreover, she said Huawei will face more competition this year, with Samsung continuing to grow at a rapid pace, Apple introducing a range of new devices (including 5G models), and also from Other Chinese brands such as Xiaomi, Vivo, etc. are currently entering foreign markets, including GCC.
Srivastava said that 5G devices will help revive the global smartphone market in 2020, in the context that consumers are trending to keep their devices longer, not in a hurry to replace them; And Akash Balachandran, senior analyst at IDC, said that 5G will undoubtedly be something that manufacturers will focus more on in 2020.
5G will grow strongly after 2023
However, Balachandran said that 5G market share will remain relatively small in 2020, at 2.7% of all devices sold – that’s just over 500,000 devices in the GCC area, compared to 0.1%. in 2019.
“5G smartphones are expected to grow significantly as prices fall and 5G becomes more popular in the mid-range segment, which accounts for a large number of GCC smartphones “- he said.
By the end of 2023, 5G devices will have more than 38% market share in the GCC smartphone market.
Even though Huawei just launched a 5G smartphone, the Mate 20X in the region last year, it is expected to become the largest global 5G smartphone manufacturer this year (along with its sub-brand Honor), mostly. thanks to strong sales in China.
“China is increasingly deploying 5G, while Samsung, which has an advantage over competitors in the number of 5G devices, is expected to introduce more affordable 5G devices “- Srivastava said.
He added that 5G will become popular in South Korea, the United States, and China.
China contributes about 30% of 5G devices to the global smartphone industry, while the US is about 15%.
“Because we expect China to be the largest smartphone market, and Apple will launch its main 5G devices by the end of the third quarter, besides the likely 5G SE in the first quarter, Huawei will have the advantage and dominate in China “- he said.
Samsung mainly deploys 5G in South Korea, while in China, it has no advantage, the market share is less than 1%, Srivastava said, adding that the speed of deploying 5G services in Europe is not high. , and the number of 5G smartphones here will also be low.
In the Middle East, he said Samsung will hold a dominant position in the 5G market until Apple launches new devices.
Samsung sold 6.7 million 5G devices globally last year, according to industry reports.
“Sales of 5G devices are expected to account for nearly 15% of all smartphones sold and hold more than 50% market share by 2023 “- Srivastava said.
Moreover, with Qualcomm and MediaTek about to launch new 5G processors, he said that the price of 5G devices will continue to fall because many OEMs will start rolling out 5G devices this year.
“We might see 5G devices priced at $ 300 “- he said.