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Get Ready For HongMeng As Huawei Smartphone Sales Tumble By 80%

Chinese state-run media the Global Times, is claiming that Huawei will launch a homemade HongMeng OS at Huawei’s developer conference later this week, the news comes as Huawei smartphone sales surge in China but not in Australia, the US or Europe where sales of Huawei devices such as the P30 have fallen by more than 80% in some markets.

The move to a home grown Chinese browser follows the announcement by Google in May that it would have to stop supporting Huawei Android smartphones as a result of it being put on the US Government entity list, which strictly prohibits US companies from doing business with the likes of Huewei who have been accused of stealing US technology and producing smartphones that send information back to China.

HongMeng was originally been intended as an embedded/IoT OS and that Huawei would only use it in smartphones if forced to.

Huawei’s sales surge in China has helped the Company blunt the impact of widening U.S. restrictions on the Chinese brand.

Canalys research claims that Huawei’s share of smartphone sales in China soared by almost a third to a record 38% during the second quarter.

All of Huawei’s major rivals, including Apple lost ground in the period.

Outside of China, Huawei’s second-quarter year-over-year smartphone shipments fell in most key markets including Australia Europe, the Middle East and Southeast Asia, according to Mo Jia, a Canalys analyst.

In markets such as the United Arab Emirates and the U.K. sales fell by about 80% in June compared with April, he estimated.

In Australia, Huawei has been banned from supplying equipment to both the National Broadband Network and to the 5G networks being rolled out by Telstra, Optus and Vodafone.

The Chinese Company recently held a dinner for media who have praised their products in the past telling attendees that nothing has changed in the Australian market when research is showing the opposite to what management is claiming.

Huawei Australia’s managing director Larking Huang told the AFR that the Company was here to stay and was not set to lay off staff despite a senior executive of the Chinese Company admitting in a telephone conversation with ChannelNews and heard by other people that things were not as Huang is claiming, Huang also claimed that sales of Huawei phones in Australia had “hardly” been affected.

“Huawei is being forced to switch its focus back to China,” Mr. Jia said. “Of course, China is safer for Huawei. Its brand image is No. 1.”

Even if there is no hiccup in Google services related to the use of their smartphone OS analysts warn the U.S. blacklisting could still do lasting damage to the Huawei brand overseas.

The blacklisting has caused Huawei executives to postpone beyond this year a long-time goal of becoming the world’s top smartphone vendor.

Analysts said if Google, a unit of Alphabet, doesn’t get Commerce Department clearance to continue working with Huawei, the Chinese company’s overseas smartphone sales could collapse.

A Google representative wasn’t available for comment.

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