In the early days of the smartphone industry, Chinese companies like Huawei weren’t really given too much thought. They usually portrayed themselves as the cheaper alternative to brands like Apple, Samsung, LG, and so on, but that changed in the recent years where we’ve seen Huawei steadily climb the ranks.
Just when it looked like things were poised for Huawei and other Chinese companies to dominate the market, the US placed it on its Entity List, effectively neutering the company’s smartphone business, and those effects can clearly be seen in the Western European market where Huawei’s smartphones saw a decline in shipment of close to 60%.
The company is said to have sold an estimated 2.5 million smartphones in Q3 2020, versus the 6.2 million they did in the previous year. It also saw Huawei’s market share decline considerably where it dropped from 20% to a mere 8.8%. While this only represents Western Europe, it is also probably applicable to other markets the company operates in.
While we can’t dispute the hardware of Huawei’s phones, the lack of access to Google’s apps and services have no doubt deterred existing customers and new customers from purchasing the company’s devices. Unless the US government has a change of heart, or if Huawei can convince its customers and the rest of the world that its Harmony OS is worth switching over from Android, the future certainly looks bleak for the company.