After shipping 206 million smartphones last year and half of them sent from China, Huawei delivered 59 million units in the first quarter of this year. This was 50.3% a year and put Huawei ahead of Apple and only Samsung in the world rankings. The company was eventually gaining momentum, as it seemed to be on track to become the world’s largest smartphone manufacturer by 2020. And then the company was hit by an unexpected disaster. Listed as an entity in the US Department of Commerce. Huawei has essentially been banned from accessing the US supply chain. The main suppliers in the United States Or those that use US technology have cut their connections with Huawei, such as Google, Intel, Qualcomm, ARM Holdings and many others.
Huawei itself says it could see a 40 million drop in shipments to 60 million units this year, which would lead to a total of 146 million to 166 million phones delivered by Huawei in 2019. While some current and previous models include the Huawei P30 series and the Mate 20 Pro will be updated to Android Q, it seems that the planned Mate 30 series will be shipped with the company’s Hongmeng operating system. While this will surely reduce the demand for the manufacturer’s phones, from May 30, Huawei has already sent 100 million phones this year. The information was revealed by the president of the Huawei’s smartphone product line, He Gang, at an event organized to present the company’s new Nova 5 phone.
Huawei has sold 2 million Watch GT units since October
Huawei founder and CEO Ren Zhengfei said this week that the US supply chain ban will eliminate $30 billion from the company’s mainline this year. The executive added that smart phone sales outside China have already fallen by 40% compared to last month.
In addition to that, the company continues to perform well in the mobile device industry. Huawei Consumer Business Group said today it has shipped 2 million units of its Huawei Watch GT smartwatch all across the world since it was launched last October. The company noted that deliveries of its portable devices made during the first quarter of this year increased by 282.2% compared to the same quarter of 2018. In general, Huawei has sent 5 million devices portable during the three months from January to March placing it at third position after Apple and Xiaomi with a market share of 10%.
Huawei introduced two new device variants earlier this year, including Watch GT Active and Watch GT Elegant. The first has a wider 46 mm case, while the second has a 42 mm case.
There is still the possibility that Huawei’s nightmare may disappear as soon as it occurs. While the US had put the company on the entity list due to security concerns, President Donald Trump said the company could be used as a bargaining chip to get favorable terms from China in a new trade deal. The US and China are involved in a trade war with every country that imposes taxes on the products of others that are imported into their country. If an agreement can be reached, it may include a provision that allows Huawei to be removed from the List of Entities. In this scenario, companies like Google and ARM Holdings could again do business with the nagging phone manufacturer. If the trade war intensifies, Trump has threatened to add tariffs for an additional $300 billion of Chinese products. Reportedly, this level of products includes smartphones, tablets, and some accessories.
President Trump should meet Chinese President Xi Jinping at the G20 summit in Japan next week. Trade negotiations could resume soon after.
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