Chinese technology giant Huawei pipped both Apple and Samsung to become the most sold smartphone brand in the second quarter of 2020. This is the first time that Huawei has captured the largest market share in global smartphone sales, beating both the American giant and the South Korean conglomerate.
However, there is a certain catch to this first-time laurel by the Chinese company.
Huawei jumps past Apple, Samsung, books top-spot in smartphone sales in 2020's Second Quarter
Huawei’s smartphone sales for the corresponding months between April and June were solely driven by demand in China.
Statistically, according to reports, Huawei sold 55.8 million smartphones in these three months. Of these, nearly 70 per cent were sold in mainland China. Furthermore, the reports also pointed out that Huawei’s global sales had fallen by around 27 per cent for the 2020 quarter as compared to previous year’s sales figures for the same time.
Particularly, in Europe, Huawei’s market share has slipped down to about 16 per cent for 2020’s second quarter while it had a hold of about 22 per cent of the market share in the same quarter, the previous year.
Since Huawei has been barred from accessing American companies’ technology including software such as Android, it has been affected in international markets where Android forms one of the two major operating systems for smartphones.
While Huawei has launched its operating system, it lacks the apps that the Google-owned Android has to offer which, in turn, affects potential customers from countries outside of China. Experts have been quick to point out such one-sided demand fuelling is not viable for the company’s prospects with regard to sustaining its market presence in the long run.
Canalys’ analyst Mo Jia said, as quoted by CNBC, “It will be hard for Huawei to maintain its lead in the long term. Its major channel partners in key regions, such as Europe, are increasingly wary of ranging Huawei devices, taking on fewer models, and bringing in new brands to reduce risk”.
Lastly, Jia added, “Strength in China alone will not be enough to sustain Huawei at the top once the global economy starts to recover”.