Huawei Technologies raised its share in the smartphone market of China to a record 42 percent, while shipments in the third quarter grew by two-thirds, because the domestic consumers have rallied to protect the company after the U.S. sanctions.
Huawei has strengthened its dominance in the world’s largest smartphone market, even when the company from Shenzhen has been almost prohibited by the United States in may from doing business with American companies, which greatly disrupted its ability to supply key components.
Creator smartphones No. 2 in the world was granted a reprieve until Nov. However, stock and Patriotic purchases have spurred sales of smartphones Huawei in China, helping it more than offset the decline of supply on the world market.
While the Chinese smartphone market declined by 3 percent in the third quarter of the year compared with a year earlier, sales of smartphones Huawei amounted to 41.5 million out of 97.8 million for the period, according to research firm Canalys.
“Huawei has created a huge gap between themselves and other suppliers,” said Nicole Peng, Vice President of Canalys on mobile devices. “Its dominant position gives Huawei a great opportunity to negotiate with the supply chain and increase their share of the profits in distribution channels.”
The growth of Huawei was due to the main competitors – Oppo, Vivo, Xiaomi and Apple, which together made up approximately 50 percent of the market in the third quarter, compared to 64 percent a year earlier.
Sales in the third quarter also point out the weakest in five years a quarter for Apple in China, said Peng.
However, she added that Apple received a boost after the launch of the iPhone in September 11 and customers willing to wait two to three weeks to receive a shipment of the new model.
Huawei said last week that it has sold more than 200 million phones worldwide in 2019, 64 days earlier than in 2018.
The company’s profit remains stable despite pressure from the United States, while revenue jumped 27 percent in the third quarter of the year.
The flagship version of the Mate 30 Pro 4G, which Huawei launched in September, was not the biggest success factor in the third quarter, said pan, and most buyers are waiting for the launch version of 5G at the end of this year.
“Huawei is in a strong position to further strengthen its dominance in the background of the deployment of 5G network, given its close relations with the operator to deploy 5G network and control over key components, such as compatible with the local network chipsets 5G compared to other companies,” said Peng Canalis.
“The gap between Huawei puts considerable pressure on the Oppo, Vivo and Xiaomi, which is very difficult to make any breakthrough.”