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Facing U.S. Sanctions, Huawei May See Global Smartphone Share Slump to 4% in 2021

By Ding Yi / Nov 25, 2020 04:18 PM / World

Huawei may see its global smartphone market share fall to just 4% next year, as it struggles to lessen the effects of a crippling U.S. campaign that limits supplies of handset chips made with American technology to the Chinese tech giant, according to TrendForce.

If that becomes a reality, it will mark a dramatic drop for Huawei, which for the first time outgunned Samsung as the world’s largest smartphone vendor in the second quarter of this year with a global market share of 19.6%.

The forecast comes a week after Huawei announced an agreement to sell its budget smartphone brand Honor to a government-backed consortium in exchange for an opportunity to “save Honor’s industry chain” impaired by the current U.S. tech export restrictions.

Meanwhile, TrendForce also predicted that sales of Honor-branded smartphones will likely just account for 2% of the global phone market next year as whether the brand’s departure from Huawei will please the U.S. government to lift the ban remains to be seen.

In 2019, sales of Honor-branded smartphones accounted for 26.4% of Huawei’s total phone shipments, according to IDC.

However, Huawei’s woe appears to be good news for other major Chinese smartphone makers, including Xiaomi, Oppo and Vivo, which TrendForce said will raise their production targets to fill the vacuum left by Huawei.

Contact reporter Ding Yi (yiding@caixin.com)

Related: Huawei May Become the World’s Biggest 5G-Phone Maker This Year


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