Huawei’s Smartphone Market Share Under Threat, Analyst Ming-Chi Kuo Predicts

Ming-Chi Kuo, an analyst from financial services group TF International Securities, predicted that Huawei’s competitiveness and smartphone market share will drop regardless of if the company gets its components, according to his article published on TF International’s WeChat public account on Aug. 30.

Kuo analyzed that the best scenario for Huawei would be declined market share while the worst would be Huawei exiting the smartphone market.

Meanwhile, the smartphone market shares of Huawei’s opponents Apple, Oppo, Vivo and Xiaomi are expected to rise, as Kuo said.

Nevertheless, as shown in the report given by the market research organization IDC, although global smartphone shipments in the second quarter of 2020 decreased by 16% year-on-year, Huawei surpassed Samsung with 55.8 million shipments and ranked first in global smartphone shipments with a market share of 20%.

If Huawei’s lack of mobile phone components causes its shipments to decline, brands like Xiaomi and Apple will replace its market share, the same as Kuo predicted. And accordingly, Huawei’s mobile camera, HDI, storage and 5G chip technology upgrades will slow down due to the lack of components as well as pressure and restrictions on Huawei from the U.S. and the U.K.

As of press time, 15 days remain before Huawei officially forgoes the high-end Kirin chipsets.

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But in spite of all the upcoming challenges in the company’s mobile phone business, the Chinese technology giant will hold its Huawei Developer Conference from Sep. 10 to Sep. 12 in the city of Dongguan, where Harmony OS 2.0 will be launched and updates on HMS Core 5.0 and the development of EMUI 11 will be released.