Many people think that Huawei will soon cease to exist due to the sanctions that the US government imposed on it. But in reality, everything turns out to be not quite so and the company is doing very well. The global crisis and pandemic even helped her in some way, but the fact remains – Huawei is confidently sitting at the top of the smartphone trade pyramid, angrily exchanging glances with Samsung, which is very close and is not ready to put up with this state of affairs. Is it normal at all that a manufacturer that is about to be left without processors continues to outperform a much more stable company? Yes, that's okay as long as Huawei has one trump card.
Huawei can do a lot, even with 'one wing'.
Why Huawei sells a lot of smartphones
Just as a blogger has his subscribers as an asset, and an athlete has his fans, a smartphone manufacturer has fans of the brand. And also those who just like the product and who are ready to buy it. It so happened that with this Huawei everything is fine lately, and for a long time she can boast that she has those who are ready to carry her rubles, dollars, euros and especially the yuan.
It is the Chinese market – this small closed world – that remains the company's main asset. There, as in her own home, she will always be supported, sheltered and ensured a high level of sales. After the imposition of sanctions, the level of support became even higher. For a while, the Chinese even demotionally abandoned iPhone (which, by the way, they love very much) and switched to Huawei. Later, emotions subsided a little and such actions stopped.
In fact, the company should be given its due. Compared to the rest of the Chinese Huawei and Honor are really cool. For example, I really liked the new Honor 30 Pro +. Yes, it does not have Google services, but overall it is much better than other smartphones from the Middle Kingdom. Forgive me fans Xiaomi and Oppo.
According to the statistics, my opinion is shared by many smartphone users from Russia. According to statistics prepared by various companies and agencies, it is Huawei and Honor that are at the top of consumer sympathies in our country, and if you take them together, competitors will have no chance at all. In addition, sales are high in the world.
Huawei have bought and will buy.
Not so long ago I talked about the fact that by the end of April the company outstripped even Samsung in sales. It turned out that the achievement was not so temporary and was repeated again. Only now at the end of the quarter. What's happening? Does the company even know that it is under sanctions?
How many smartphones are selling Huawei
In fact, sales Huawei did indeed fall, and at the same time a lot. True, the fall happened in the world, and not in China, where Google services have never worked. In this market, on the contrary, sales increased slightly. Itself Android cannot be prohibited from using because of open source code, and Google services only interfere with sales outside the territory of the Middle Kingdom.
Despite the sanctions in place for half of last year, the company was still able to sell 240 million of its smartphones. In comparison, all Google Pixel models have sold less than 10 million, and Oppo (fifth in the sales ranking) has just over 100 million. In April 2020, Huawei completely overthrew Samsung to become the world's leading smartphone brand.
Events Huawei have always generated interest
In May Huawei it retained its position. However, the percentage difference between first place Huawei and second place Samsung is only 0.1%. That is, according to the data, for the months that have already been “hit”, Huawei is ahead, but according to a recent report from Nikkei Asia, Huawei is likely to maintain its leadership in June.
Due to the longer lockdown period due to the coronavirus pandemic, Samsung shipments are likely to decline by about 30% year on year from April to June. Since the main market Huawei is China, the company's sales will decline only marginally. It is the Chinese market that has almost woken up after the pandemic, unlike the rest of the world, where the situation is still not very good.
Samsung's April-June consolidated financial report, released on July 7, showed that the company had profit of 8.1 trillion won, up 23% from the same period last year. On the contrary, revenue fell 7% to 52 trillion won. On the one hand, these figures indicate that the company has begun to work much more efficiently, because the share of profit in revenue has become significantly higher, but this does not affect smartphone sales.
According to SK Securities, shipments of Samsung mobile phones in April-June amounted to 51 million units, and Huawei as much as 4 million more (55 million units). This is the math.
How is Huawei doing
While the smartphone business Huawei seems to be doing well, the US government is extending sanctions and even introducing new ones. An example of the new sanctions was the recent ban on the purchase of processors from companies using American technology. First of all, such a ban is aimed at TSMC, a company that makes chips for almost all smartphone manufacturers. This giant also makes chips for HiSilicon, which is a subsidiary Huawei and is responsible for Kirin processors.
Let's see how things go Huawei, but there is still a little time to solve problems.
As a result, Huawei will have to get out and look for someone to buy processors from after all the orders placed earlier are completed. So far, there are not so many options, but considering the sales of equipment Huawei, there will be many who want to sell them chips. There are even ZTE and Samsung among them, but both need to resolve a number of issues related to circumventing the ban.
We will tell you how events will develop in our Telegram news channel.
Let's see how events will develop further, but so far Huawei on a horse, including due to unsatisfactory demand for Samsung Galaxy S20 series. There is still a margin of safety and China will help, but the way out will still be very expensive Huawei.