Huawei, the second largest smartphone maker in the world in 2019, could leave this market due to US sanctions.
This is one of the scenarios advanced by the renowned analyst Ming-Chi Kuo, from KGI Securities. In the most optimistic of these, the Chinese company will lose massive market share, but will continue to produce smartphones.
In the pessimistic scenario, Huawei will give up its business in the smartphone industry. The companies that will benefit from such a decision will be, as expected, the great rivals Samsung and Apple.
In China, the largest smartphone market, Huawei’s exit would benefit the Oppo, Vivo and Xiaomi brands.
The US government recently imposed new sanctions on the Chinese giant. The company no longer has access to high-performance processors for its mobile devices. The solutions offered by companies from China or other allied states are not good enough to compete with Qualcomm or Samsung products.
Huawei also has problems on the telecom infrastructure side
The company has no problems only in the consumer division. The US is pressuring its allies not to involve the Chinese company in the development of 5G networks. The US government claims that Huawei is an instrument through which the communist government in Beijing spies on the West. Countries such as the United Kingdom, New Zealand and Australia have announced that they will not use Huawei equipment in 5G networks.
In 2019, the company delivered 240 million smartphones, and in April and May of this year Huawei was the world’s largest manufacturer of smartphones. At the moment, the company is the largest provider of telecommunications equipment in the world and a leader in the field of 5G networks.