- China’s Huawei Technologies snatched the title of Samsung Electronics’ largest smartphone seller in the second quarter, highlighting China’s market’s resilience even as global phone demand plunged into the pandemic.
China’s Huawei Technologies snatched the title of Samsung Electronics’ largest smartphone seller in the second quarter, highlighting China’s market’s resilience even as global phone demand plunged into the pandemic.
In the period April-June, Huawei shipped 55,8 million smartphones, trumping Samsung’s 53,7 million, according to data from research firm Canalys.
The Chinese corporation has felt the heat of U.S. sanctions that threatened its overseas operations, but the latest statistics show its growing dominance in its home market.
Huawei now sells nearly two-thirds of its handsets in China, which had suffered an early hit from the coronavirus pandemic but has since regained ground as new cases have dwindled. Dominant smartphone makers in other countries are also struggling as new cases of viruses continue to develop.
Huawei ‘s revenues fell 5 percent from the same period a year ago, while South Korea’s Samsung reported a 30 percent decline due to poor demand in key markets like Brazil, the US, and Europe.
“In these difficult times our business has shown exceptional resilience,” said a Huawei spokesperson.
Domestic revenues rose by 8%, but in the quarter Huawei ‘s overseas shipments dropped by 27%.
Stinting the business as the top seller can prove short-lived until other markets recover, a senior Huawei employee with knowledge of the matter told Reuters.
Samsung said on Thursday it expects to pick up demand from smartphones in the second half of the year.
The United States has effectively blocked Huawei from accessing the services offered by Google, undermining the popularity of the Chinese company’s phones overseas, and limiting its access to chips that are critical to 5 G networking.
In a study on Wednesday, S&P Global Ratings said the new Huawei sanctions could wipe out $25 billion in revenue from many Asian-based companies. Huawei has yet to discuss publicly the effect of such curbs on its operations.
Despite impressive hardware, as they are blocked from using Google services, Huawei phones are now a hard sell to most consumers outside of China. It’s hard to see the company remaining at number 1 spot until the global market for smartphones recovers; Samsung just said it’s anticipating stronger revenue next quarter due to new releases of flagship phones. But the continuing strength of Huawei in China shows that external pressures still do not pose an existential threat to its consumer businesses — at least not at home.
