Due to the coronavirus outbreak, global smartphone shipments will decline a lot. But for Huawei, there is another factor that will affect its performance this year. As you know, the US government has included it in the ‘entity list’. As a result, Huawei can’t use any US product on its smartphones. Simply put, it can’t use Google Mobile Service. All these factors (and those we didn’t mention) will have a significant impact on Huawei’s smartphone sales. It’s reported Huawei expects that annual smartphone shipments will decline by about 20% this year. This is also the first time in 10 years that Huawei has encountered a decline in smartphone shipments.
It is worth noting that this is the first time that Huawei’s smartphone sales will experience a year-on-year growth decline. In addition to the US sanctions, the impact of the current new coronavirus epidemic on China’s manufacturing and retail industries could also make the situation worse.
The lack of GMS caused weak sales of its smartphone business in Europe and other overseas markets. But in its turn, this situation made Huawei boost the development of its own operating system. It’s ready. But Huawei still uses Google Android OS. And if the US government decides to cut this cord, as Huawei claims, it will take only a couple of days to completely switch to Harmony OS. As for Google Mobile Service, the company has developed its own Huawei Mobile Service and it’s already available in a few markets.
We know that Huawei surpassed Apple in smartphone shipments for the first time in 2019 and became the world’s second-largest smartphone manufacturer. However, the failure of the new machine to obtain Google Mobile Service authorization has always been one of the constraints of its overseas smartphone market.