Huawei Topple Apple Amid US Trade War
Chinese smartphone giant, Huawei, has remained the world’s second largest smartphone maker in Q1Y19, however, Gartner warns the company will “struggle not to lose market share” in the remainder of 2019.
The news comes as Huawei grapples with stringent US-China trade tensions, leading several American companies (e.g. Google and Microsoft) to distance themselves.
Google has also pulled Huawei’s Android license, leading the Chinese giant to further accelerate its own operating system.
“Unavailability of Google apps and services on Huawei smartphones, if implemented, will upset Huawei’s international smartphone business which is almost half of its worldwide phone business,” asserts Gartner analyst Anshul Gupta.
As per a Courier Mail exclusive, Telstra moved to quietly dropped Huawei products from its shelves, with some other carriers tipped to follow suit.
As previously reported, some analysts claim rigid trade tensions could see Huawei disappear from international markets, relying solely on the behemoth Chinese audience.
“Not the least it brings apprehension among buyers, limiting Huawei’s growth in the near term,” adds Gupta.
According to latest Gartner numbers, global smartphone shipment slipped 2.7% YoY in Q1, notching 373 million units.
In Australia, smartphone sales dived 10.2% YoY to 2.04 million units, versus around 2.5 million in Q1Y18.
Despite being accused of cyber-security risks and links to the Chinese government, Huawei achieved the highest year-on-year growth amongst the world’s top five smartphone makers, with sales up 44.5%.
Apple and Samsung both recorded year-on-year shipment declines in Q1, following lengthening replacement cycles and fierce flagship phone competition.
“Demand for premium smartphones remained lower than for basic smartphones,” adds Gupta.