Huawei smartphone sales fall by 20% due to new coronavirus and elimination of Google
Huawei's sales, which have experienced remarkable growth in the smartphone market in recent years, are expected to fall significantly in 2020, according to reports. In the background, it is believed that the effects of the economic turmoil associated with the outbreak of the new coronavirus discovered at the end of 2019 and the inability to use Google services due to the U.S.-China technology cold war that began in full swing from mid-2019 .
Huawei Projects Big Drop in Smartphone Sales Amid US Sanctions — The Information
Huawei's 2020 smartphone sales may drop over 20%-9to5Google
Huawei expects a 20% drop in phone sales, thanks to lack of Google apps | Ars Technica
Huawei's smartphone shipments have increased dramatically in recent years, and shipments exceeded 200 million in 2018. In 2019, shipments reached 240 million units, surpassing Apple and jumping into the world's second largest smartphone vendor.
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Meanwhile, the U.S. news site The Information announced on March 6, 2020, 'Huawei expects sales in 2020 to fall from approximately 190 million units to 200 million units.' The forecast came from a person familiar with Huawei's internal affairs, and it was said that information was only shared internally by Huawei to some managers in the home appliance division.
The Information pointed out that Huawei's 2019 shipments were strong because 'we were able to continue selling older models that were not affected by Google.' However, shipments are expected to fall by nearly 20% by 2020, due to difficulties in selling older models. The impact is already apparent in the fact that retail stores, including Huawei brand shops, are closing down or shrinking in size for 4,985 stores across China.
The information about Huawei's smartphone shipments expected to drop sharply, The Information said, `` This is the fact that the U.S. government restricts exports of technology in general, including Google's software, which has hit Chinese companies' international growth The United States' Huawei exclusion is a major factor.
In 2019, President Trump of the United States issued a presidential decree in 2019 that greatly restricts domestic businesses from dealing with Chinese IT-related companies including Huawei, which has allowed Huawei to install it on its smartphones so far. You can no longer use many Google software such as Android and apps.
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In addition, the impact of the new coronavirus on China's manufacturing and supply chains is likely to spur the decline in shipments. To stop the spread of the new coronavirus infection, Foxconn / Samsung's high-tech factory and the factory supplying iPhone camera modules are being closed one after another in China, which is affecting Chinese company Huawei. The Information points out.
An anonymous insider who provided information to The Information said that it was 'a double struggle between US export restrictions and the spread of viruses.'
To address these difficulties, Huawei is aggressively increasing its workforce to strengthen local sales and marketing to increase its presence in Russia and Turkey, where Google's services are less popular. And that. In addition, there is a growing movement to find a way out of dependence on Google, such as by developing an original OS for smartphones and using alternative services to Google Maps.
It is reported that Huawei's original OS equipped smartphone will appear in 2019-GIGAZINE
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9to5Google, a news site that deals with Google-related information, said, `` Huawei's flagship smartphone `` Huawei P40 '' series announced on March 26, 2020 The latest model of the Huawei P40 series will definitely not be able to use Google software, so 2020 for Huawei It will be significantly tougher. '
On the other hand, older devices such as the IT news site Ars Technica 'Huawei P30 Pro' can still use Google's apps. To see the impact of Huawei elimination in the United States, all Huawei with Google products installed We need to wait for the smartphone to come to an end. 'For the time being, he said that past models will support Huawei's performance.