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Huawei is rapidly losing share in the smartphone market in China due to US sanctions
US restrictions on the supply by US companies of components for Huawei have a very noticeable impact on the company’s sales, even in its home Chinese market. Counterpoint Research estimates Huawei’s market share in China dropped to 16% in January 2021. For comparison, in the first quarter of 2021 this figure was 41%, that is, there was clearly a sharp drop.
Daniel Cooper / Engadget
The sale of the Honor brand, of course, played a role in this, but Counterpoint explains the decline mainly due to US restrictions. Due to shortages of components such as 5G processors and modems, Huawei is forced to focus on small volumes of premium smartphones such as the Mate 40 Pro to make the most of its limited inventory.
After the imposition of US sanctions, the situation in the Chinese market has changed dramatically. In January, Oppo became the country’s top brand for the first time, gaining 21 percent share, while its sister brand Vivo came in second with 20 percent. Huawei, Apple and Xiaomi each have 16% of the market.
Although Honor will continue to solidify, Huawei’s future does not look rosy. Analysts believe it will continue to fall in 2021. Competitors are also moving forward. Oppo to unveil flagship Find X3 series smartphones on March 11 and boost sales of more affordable Reno 5 and A series devices. In turn, Xiaomi recently released Mi 11 — the world’s first smartphone on Snapdragon 888.