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Huawei smartphone shipments to decline nearly 75% in 2021

F-22Raptor

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Chinese tech giant Huawei is planning to produce around 50 million units of smartphones in 2021, TheElec has learned.

This will be a drop of 74% from the company’s expected shipment for 2020.

Huawei shared this 2021 target with its South Korean subcontractors, people with direct knowledge of the matter said.

The company in 2019 moved 240 million units of smartphones and is expected to ship 190 million units this year. The target for 2021 is equal to 21% and 26% of these shipments, respectively.

Huawei’s lowered shipment target is largely in reaction to US sanctions that is hampering its ability to secure components. The company is effectively barred from purchasing semiconductors used in smartphones and notebook PCs starting on September 15. It can use chips from its inventories but it won’t be able to use the latest processors that its rivals will use.

Huawei’s rivals such as Samsung will likely benefit from this recent development, especially in markets such as China and Europe.

Out of Huawei’s full-year sales of 858.8 billion yuan last year, 506.7 billion yuan (59%) came from China and 206 billion yuan (24%) came from Europe. The company launched its flagship smartphones first in Europe and has been aiming to expand is presence there.


Samsung was aiming to expand its market share in Europe next year, people familiar with the matter said. The company is No.1 there but saw both its shipment and share decline in the first half of 2020.

The South Korean tech giant is also aiming to ship 300 million units of smartphones in 2021. The new, aggressive target is aimed at taking advantage of the vacuum caused by Huawei’s troubles.

Samsung moved 295 million units of smartphones in 2019, while it is expected to ship between 240 million units to 260 million units this year.

The company is also positioned to take advantage of the dispute between India and China. Samsung is aiming to be aggressive in India next year as well.

However, the company wasn’t looking to make such aggressive pushes in China as it has less than 1% market share there and is unlikely to recover its past glories there.

Huawei’s vacuum in China will likely benefit Xiaomi the most. Xiaomi became the third largest mover of smartphones in Europe in the second quarter, surpassing Huawei, according to market research firm Canalys. It has a share of 17% and its shipment increased 65% from the year prior during the quarter.

Huawei saw its shipment drop 17% year over year and ranked fourth in the second quarter, Canalys said. Samsung was the largest vendor with 30% market share, followed by Apple’s 21%.

Huawei has said it aimed to become the largest smartphone maker this year, prior to US sanctions. It was the largest shipper of smartphones in the second quarter this year.

http://www.thelec.net/news/articleView.html?idxno=1505
 

antonius123

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Huawei more dominant in telecom networking than ever – Dell’Oro

Ray Le Maistre

By Ray Le Maistre
Sep 8, 2020

  • H1 2020 telecom equipment market grew in value
  • Massive investments in China benefited local vendors
  • Huawei grew its market share to become an even more dominant #1 vendor
Despite the best efforts of the US administration, Chinese vendor Huawei has grown its share of the global telecoms infrastructure market and is now more than twice as big as its nearest rival, according to trusted market research firm Dell’Oro, which calculates that the market grew in value by 4% in the first six months of 2020.
According to Dell’Oro, Huawei commanded 31% of the total spend on telecoms networking gear – comprising Broadband Access, Microwave & Optical Transport, Mobile Core & Radio Access Network, SP Router & Carrier Ethernet Switch equipment – during the first half of this year, up from 28% during the same period a year earlier. (See this Dell'Oro blog for the full details.)
Nokia is still in second place, but its market share was down to 14% from the 16% share it commanded in H1 2019. That share may be hit further if the market reading of Verizon’s 5G vendor selection process is accurate. (See Samsung lands $6.6 billion 5G deal at Verizon.)
Ericsson is just behind, also on 14%, with no change from a year earlier, while ZTE grew its global share to 11% from 9% a year earlier.
Both Huawei and ZTE benefitted from massive 5G investments in China during the first half of 2020. (See China supercharges its 5G investments.)
Cisco’s share dipped to 6% from 7%, while Ciena and Samsung came in as the 6th and 7th largest vendors in H1, as the chart below shows.
Source: Dell'Oro


Source: Dell'Oro
The chart also shows Huawei's extraordinary growth trajectory during the past six years and how the fortunes of the European vendors have changed.
The overall market growth was driven by higher-than-expected spending during the second quarter as supply chain disruptions caused by the Covid-19 outbreak settled down and spending in China rocketed, according to the Dell’Oro team.
The research house expects that positive trend to continue during the second half of the year and drive an overall 5% year-on-year growth in the global telecoms equipment market, even though individual companies might be feeling some pain in their own particular markets. (See Ciena preps for hit from Covid-19.)
 

Beast

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Well, apparently this is Huawei's own target. Anything near a 75% decline and Huawei will become an afterthought like Nokia.
They shift some of their handphone production from SKorea back to China. And this stupid article make a big hoo-ha with typical smearing.... :enjoy:
 

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