In May 2019, the administration of former President Donald Trump put Huawei on a “black list” that became a national security threat, requiring US companies not to do business with Huawei without a “special license” separate”.
Until this move fully took effect, Huawei had a period of becoming the world’s largest smartphone manufacturer in 2020. To date, after just over a year, it is no longer in the top 5 manufacturers. largest output.
Within two short years, the smartphone industry has accepted the fact that Huawei is no longer a global player. How has the market changed? Good or worse? What will happen to Huawei?
What do users lose?
Before being boycotted by the US, Huawei’s two main smartphone lines, P series and Mate series, were among the best smartphones. Not only with the highest configuration, innovative design, this smartphone also offers the ultimate photography experience. At that time, high-end Huawei phones were on the list of smartphones worth buying in the market. To date, almost no one has opted for a Huawei phone outside of China.
This rotation brings effects to the market. Without Huawei pushing other companies – especially Samsung – to innovate, it seems like the major manufacturers are faltering. Of course, Samsung will still compete with Apple and Chinese manufacturers, so it cannot “rest on top of the glory”. However, within the past 5 years Huawei has been the biggest competitor in the Android world. Now that competition is gone.
Huawei is also Samsung’s most notable competitor in the folding phone space with devices like the Mate X2. Despite a host of other companies entering this segment, Samsung is still seen as a pioneer and has a big advantage for a product that is considered to be the future leader of the mobile industry.
It is also important to remember that Huawei not only competes with smartphone manufacturers, it also competes with chip manufacturer Qualcomm. Although never comparable to Qualcomm in terms of performance, Huawei’s Kirin chips are exceptional in processing capabilities related to artificial intelligence.
A player leaving the game is an opportunity for a new player. In this case, it’s a lot of players.
What do we get?
As Huawei’s sales declined, other manufacturers continued to receive good news. The biggest beneficiary, without a doubt, is Xiaomi. This company currently holds the 3rd position in terms of mobile market share, behind Samsung and Apple. Although it is difficult to threaten Samsung’s leading position, Xiaomi is fully capable of surpassing Apple to take second place.
A few manufacturers such as Oppo, Vivo, and Realme also “upgraded”. Realme is currently the 6th largest manufacturer in the world, despite being 3 years old. The race of manufacturers to capture more of the market share left by Huawei gives users low-cost mobile phones with exceptionally good configuration.
What will Huawei do?
It is not clear what the market flow will be, but at the immediate stage, it is clear that users are “losing more than they gain”. There’s a sense that the market “needs a Huawei” to drive things.
At this point, Samsung and Apple don’t need to worry about a 3rd company that can “sit on the same tray” with them in the high-end segment. Huawei’s smartphones will have little chance of appearing in international markets, unless the US government changes its policy. However, in the next few years, it is possible that we will see Huawei push its existing talent into a few other areas. Computers, wearables, audio devices are options. They can also attract attention in VR, traffic, even health.
Huawei is a beloved brand in China and will continue to have billions of customers. The company’s release of Harmony OS a few days ago shows that the company is still determined with the mobile segment – with or without the companionship of US technology firms.