A girl carrying a face masks as a safety measure in opposition to the COVID-19 coronavirus speaks on her smartphone in entrance of a mall at a Huawei retailer (again) in Beijing on April 1, 2020. (Photograph by NICOLAS ASFOURI / AFP) (Photograph by NICOLAS ASFOURI / AFP by way of Getty Photos)
Nicolas Asfouri | AFP | Getty Photos
HANGZHOU, China – Huawei telephone shipments declined within the third quarter as U.S. sanctions continued to harm the Chinese language tech big whereas home rival Xiaomi managed to capitalize on them, new knowledge reveals.
Within the three months to the top of September, Huawei shipped 51.7 million smartphones, based on a Canalys report launched on Thursday, a 23% lower from final 12 months.
One other firm, Counterpoint Analysis, introduced Thursday that Huawei had shipped 50.9 million smartphones, a 24% lower from the identical interval final 12 months. In accordance with Counterpoint, the Chinese language firm’s market share fell from 18% within the third quarter of 2019 to 14%.
Total, world smartphone shipments reached 348 million models within the third quarter, a 1% lower from a 12 months earlier however a 22% improve from the second quarter, the Canalys report confirmed.
Huawei misplaced its crown because the world’s largest smartphone maker after profitable the title within the second quarter of the 12 months.
Samsung overtook Huawei. Shipments from the South Korean big totaled 80.2 million, up 2% 12 months over 12 months, Canalys mentioned.
The US campaigned in opposition to Huawei as a part of the broader commerce struggle with China. Thought-about one among China’s nationwide champions, Huawei is vital to the nation’s ambitions in next-generation applied sciences like 5G, the next-generation mobile networks that provide super-fast knowledge speeds.
Washington has imposed a collection of sanctions on Huawei that proceed to take their toll. Final 12 months, Huawei was placed on a US blacklist often known as the Entity Listing. This prevented American firms from doing enterprise with the Chinese language big. This meant that Huawei was now not allowed to make use of licensed Google Android software program on its smartphones.
This is not an enormous deal in China, the place Google providers are successfully blocked anyway. Nevertheless, in worldwide markets, that are important to Huawei’s development plans, shoppers are used to utilizing Google Apps. Huawei’s newest smartphones haven’t got a licensed Google Android and that is affecting the corporate’s machine gross sales.
The decline in worldwide markets continues for Huawei, however the firm additionally noticed shipments in China decline 15% within the third quarter, based on one other IDC report launched Thursday.
Different uncertainties about the way forward for Huawei’s smartphone enterprise persist. In Could, Washington modified a rule aimed toward excluding Huawei from important chip shipments. The Taiwanese firm TSMC, which manufactures Huawei’s smartphone chips, is now not allowed to provide these parts to the corporate.
Xiaomi confiscates Huawei shipments
In the meantime, Chinese language rival Xiaomi is filling the void.
“Xiaomi was executed with aggression to confiscate shipments from Huawei,” mentioned Mo Jia, an analyst at Canalys. “Within the third quarter, there was symmetry as Xiaomi added 14.5 million models and Huawei misplaced 15.1 million. In Europe, a significant battlefield, Huawei shipments fell 25% whereas Xiaomi rose 88%. “
In accordance with Canalys, Xiaomi’s smartphone shipments for the quarter ended September totaled 47.1 million, up 45% 12 months over 12 months. It turned the third largest smartphone participant by market share and overtook for the primary time Apple took fourth place and shipped 43.2 million iPhones in the same quarter.
The IDC numbers were slightly different. The research company’s data showed that Apple shipped 41.6 million iPhones in the third quarter of 2020, a 10.6% year-over-year decrease. According to IDC, the decline was expected as the next-generation iPhone 12 series was delayed.
The Cupertino giant announced the iPhone 12 range later than mid-October. Some devices won’t be available until next month.
“Regardless, the iPhone 11 series has done exceptionally well, contributing most of the Apple volume, followed by the SE device,” IDC said. “Going forward, we expect Apple to grow in the coming quarters with strong early iPhone 12 demand and robust trade-in offers from major vendors, particularly in the US.”