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Huawei took a big PR hit last year when the Trump administration put the company on the U.S. Entities List. Many thought it would be a stake in the heart of China biggest smartphone manufacturer, killing any chances of it becoming a more dominant player in the industry. While 2019 as a whole was the best year on record for Huawei sales, the company faced a dramatic decline in sales over two consecutive quarters
But if you were among those who had already written Huawei completely out of the picture, you’re in for a surprise.
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In Q2 of 2020, Huawei overtook Samsung as the world’s largest smartphone vendor, surpassing Samsung for the first time. In total, Huawei shipped more than 55.8 million devices in the second quarter of this year. That number is 5% lower than what Huawei managed to deliver in Q2 of 2019, but that drop-off panels in comparison to Samsung’s year-over-year drop of 30%, resulting in 53.7 million devices shipped during the quarter.
While Huawei appears to have solidified its position in the market, China is the only reason why Huawei isn’t spiraling out of control. Since Q1 of 2019, the percentage of Huawei devices sold in mainland China has increased from 51% to 72%. Elsewhere, Huawei smartphone sales have fallen off dramatically, resulting in a 25% reduction in Huawei device sales outside of mainland China.
The global pandemic certainly does help Huawei’s situation. The U.S. restrictions on Huawei’s business have had a significant impact on Huawei’s global business, but the company is proving that it is dominating within mainland China.
How long that will last is anyone’s guess.
Source: Canalys
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