Huawei loses smartphone market share to rivals

U.S. sanctions against China’s Huawei have hit their marks: its smartphone shipments have fallen by 4% during the December quarter, according to shipment data.

According to data from research firm Canalys, Huawei’s market share in China slumped to 22% from 38% in the year-ago quarter. However, it continues to remain the market leader with a slim lead over its closest rival – Oppo.

Huawei’s domestic shipments fell by 44% to 18.8 million smartphones; its global shipments have also fallen by 43% to 32 million smartphones.

The development comes in the wake of the Trump Administration imposing a new round of trade measures that prevented companies with U.S.-origin technology from selling components to Huawei.

During the fourth quarter, shipments from Apple Inc, Oppo and Vivo grew at a rapid pace, while Xiaomi Corp’s shipments grew by 52%. Despite this growth China’s overall smartphone market shrank by 11% in 2020.

“Huawei could have done another 30 or 40 million units this year were it not for the supply issue,” said Nicole Peng, who tracks China’s smartphone sector at Canalys. “Meanwhile other brands cannot fill the gap because component supplies are not ramping up quickly enough.”

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