Huawei marks first drop in China shipments since 2014 amid US sanctions, sees market share shrink
- Huawei’s shipments fell 18 per cent year-on-year to 34.2 million units in the third quarter, according to research firm Canalys
- The latest round of US sanctions in August shrank its market share from 44.3 per cent to 41.2 per cent
While it is still the biggest player in the market, Huawei’s shipments fell 18 per cent year-on-year to 34.2 million units and its market share shrunk from 44.3 per cent in the previous quarter to 41.2 per cent in the third, Canalys said in a report released on Friday.
“Huawei is facing its most serious challenge since taking the lead in 2016,” Canalys analyst Mo Jia said. “If the position of the US administration does not change, Huawei will attempt to pivot its business strategy, to focus on building the Hongmeng OS and software ecosystem, as the Chinese government is eager to nurture home-grown alternatives to global platforms.”
In total, China’s smartphone shipments fell 15 per cent year-on-year to 83 million in the quarter ended September, according to Canalys, reporting similar figures to a separate report by Counterpoint on Thursday, which said that China’s smartphone market shrank 14 per cent year-on-year during this period.