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Musing on Huawei
Huawei's Global Smartphone Sales Slowed in the Second Half Of 2019
February 09, 2020
Huawei is facing added pressure on its smartphone sales in 2020 as rising handset inventory levels in China's channels are being compounded by the coronavirus outbreak. Sales of Huawei's smartphones in China are expected to experience steep drops as the outbreak has faltered business activities and crippled sales channels in the country, said the sources. Global sales of Huawei's smartphone have slowed down since the second half of 2019 after losing Google's GMS (Google Mobile Services) support as a result of a US trade ban, the sources noted.
Strategy Analytics had Huawei shipping 56 million smartphones worldwide in the fourth quarter of 2019, down 7% Y/Y as its global market share also dropped to 15% from 16%. Prior to the outbreak, Huawei was faring much better in its domestic market as it shipped 75 million smartphones in2H19, growing nearly 50% Y/Y with a 40% share. Channel sales of smartphones in China have chilled due to widespread transport curbs and tough public health measures, which are expected to lower sales by 5-8 million units in the first quarter of 2020 sequentially. The excess inventories in the channels may not be digested till late in the second quarter. Sales performance OPPO, Xiaomi and vivo will also be affected in the first quarter.
Huawei's Global Smartphone Sales Slowed in the Second Half Of 2019
February 09, 2020
Huawei is facing added pressure on its smartphone sales in 2020 as rising handset inventory levels in China's channels are being compounded by the coronavirus outbreak. Sales of Huawei's smartphones in China are expected to experience steep drops as the outbreak has faltered business activities and crippled sales channels in the country, said the sources. Global sales of Huawei's smartphone have slowed down since the second half of 2019 after losing Google's GMS (Google Mobile Services) support as a result of a US trade ban, the sources noted.
Strategy Analytics had Huawei shipping 56 million smartphones worldwide in the fourth quarter of 2019, down 7% Y/Y as its global market share also dropped to 15% from 16%. Prior to the outbreak, Huawei was faring much better in its domestic market as it shipped 75 million smartphones in2H19, growing nearly 50% Y/Y with a 40% share. Channel sales of smartphones in China have chilled due to widespread transport curbs and tough public health measures, which are expected to lower sales by 5-8 million units in the first quarter of 2020 sequentially. The excess inventories in the channels may not be digested till late in the second quarter. Sales performance OPPO, Xiaomi and vivo will also be affected in the first quarter.
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