Huawei Shipments Tipped To Drop 24% In 2019
Several analysts forecast Huawei smartphone shipments to decline up to a quarter this year, as the Chinese manufacturer grapples with tight US sanctions.
According to Reuters, some analysts claim intensifying trade tensions may see Huawei phones dropped from Western markets.
Should the US ban against Huawei persist, Strategy Analytics and Fubon Research predict a smartphone shipment drop of 4% – 24% this year.
Fubon has slashed its shipment forecast from 258 million Huawei smartphones in 2019, to 200 million in a ‘worst-case scenario.’
The news follows an onslaught of President Trump instituted restrictions, preventing several US companies from openly working with Huawei.
The US government asserts Huawei telecom equipment poses national cyber-security risks, and links to the Chinese government – an allegation the company has continued to reject.
Last week, Google announced it was cutting ties with Huawei, including access to its Android licence.
Despite Huawei Australia asserting local customers may not be affected, commentators question follow-on effects after Google’s remediation period.
Speaking to Reuters, analysts expect Huawei shipments to dive in the next six months, with exact numbers unclear amid market uncertainty.
Should Huawei lose access to Google, analysts predict the company could withdraw from Western markets, surviving on the ample size of the Chinese market.
Huawei has also been preparing its own operating system, and increasing self-sufficiency for several years.
The news contrasts a bumper year for Huawei, posting a record revenue of US$107 billion in 2018, plus 34% YoY jump in smartphone shipments.