Huawei Technologies took first place in global smartphone shipments in the third quarter. To do this while continuously losing market share in the world, they have no other choice but to strengthen dominate the domestic market in China.
The Chinese market is helping more than ever for Huawei as it is the first major market in the world to reopen the economy after the corona virus pandemic. In the context of Huawei withdrawing from many international markets due to pressure from the US government, it is easy to understand why they are putting all their efforts to boost sales in China.
Sales by all means
According to a report from Nikkei, a Huawei store in Guangzhou, it is willing to accept to exchange phones from any brand to Huawei devices. According to this store, transferring data to Huawei devices only takes “from 1 to 3 hours.”
A representative of the store said that recently, a quarter of customers have come to the store to switch to Huawei from other brands, such as Apple.
In China, Huawei is currently beating other competitors by launching a range of 5G phones. Not only are there more diverse products, Huawei’s acceleration of deployment of 5G broadcast stations in urban areas also supports this growth.
The company also targets promotional hunters. The store in Guangzhou also launched a promotional campaign that included giving away free water filters as well as many other home appliances worth hundreds of US dollars to each customer buying high-end phones.
With Chinese consumers still stagnant due to the impact of the Covid-19 pandemic, these promotions have helped Huawei retain the top spot in smartphone shipments.
According to analysis firm Canalys, Huawei’s market share in China has increased to 72% in the last quarter, 8% higher than the same period last year with smartphone shipments here up 8%.
The throne is not sustainable
However, according to Canalys, Huawei’s smartphone shipments in non-Chinese markets dropped by 27% in the last quarter. This is the fifth consecutive quarter that Huawei’s overseas market share has declined.
This may explain why Huawei’s rise to the top of the world in terms of smartphone shipments in the past quarter did not make the Chinese technology company happy.
A Huawei employee based in Shenzhen said: “Everything is normal as usual. This has no effect on our operations. ”
In May this year, the U.S. government increased sanctions against Huawei including banning chip makers from using US components to make chips for the company. It is expected that by spring, the company will begin to feel the impact of the ban when stockpiles and chip orders are stopped. At this point, Huawei will be hard to continue relying on the domestic market to maintain its top position.
See the Nikkei Asian Review