Huawei may exit the smartphone market


Huawei brand

Reputable analyst Ming-Chi Kuo, who has proven himself with surprisingly accurate forecasts, has released a new report that looks at further options for the development of events around Huawei’s mobile division, which was most affected by US sanctions. Both scenarios considered by the expert cannot be called positive for Huawei, but nevertheless, a significant reduction in the company’s market share and a decrease in competitiveness are the most optimistic. The latter will inevitably lead to a decrease in the cost of smartphones.

Huawei may exit the mobile device market

According to the pessimistic scenario, the manufacturer will leave the mobile device market altogether, which will be good news for both overseas competitors such as Apple or Samsung, and other Chinese companies like Oppo, Vivo and Xiaomi. We will remind, two weeks earlier, the US Department of Commerce began to suppress possible ways to bypass the sanctions for the Chinese tech giant.

Huawei Kirin 1020

Huawei earned $35 million everyday throughout the first half of the year

According to the Securities Times, Huawei Investment Holdings Co., Ltd. recently released its first half-year financial report in the inter-bank market. In the first half of 2020 (H1 2020), Huawei achieved an operating income of 450.7 billion yuan ($65.6 billion). This is a year-on-year increase of 13.67%. Within the same period, its net profit is 43.1 billion yuan ($6.2 billion), a year-on-year increase of 23.49%. This means that Huawei made about $35 million in profit every day throughout H1 2020.

Huawei’s operating results for the first half of 2020 show that in the first half of 2020, the company achieved sales revenue of 454 billion yuan ($66 billion). This is a year-on-year increase of 13.1% and a net profit margin of 9.2%.

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Huawei’s H1 2020 report card looks great

Huawei’s consumer business has the highest revenue of 255.8 billion yuan ($36.5 billion). However, its carrier and enterprise businesses recorded 159.6 billion yuan ($22.8 billion) and 36.3 billion yuan ($5.1 billion) respectively.

Huawei’s H1 2020 business results show that the company is doing well despite the numerous ban. Recall that the U.S. did not ban Huawei and go to sleep. It is also putting pressure on its allies to also ban Huawei. The likes of Australia and New Zealand have since banned Huawei’s 5G equipment from their network. The latest country to ban Huawei from its 5G network is the U.K.

Despite all these, Huawei seems to be doing well, for now at least. In 2019, the company shipped about 240 million smartphones, a new record high. In April 2020, Huawei toppled Samsung to become the largest smartphone brand globally, a position it retained in May. Also, Huawei is currently the largest 5G smartphone vendor in the world. The company was able to achieve all these despite the ban from the U.S. and other allies.

Source/VIA :
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6 Comments

  1. Marek eMKejx
    August 31, 2020

    probably its no chance that Huawei stop mobile division. its a big machine for their money…

  2. Cyril Dieudonne
    August 31, 2020

    I'd love this forecast to be true, unfortunately I highly doubt that Huawei will exit the market. First thing first, although some countries decided to kick huawei out of the 5G pools, it doesn't mean they forbid smartphone sales. Obviously they sell like hot cakes. Very unlikely to stop this business. It brings money AND it brings exposure. Would be very weak strategy. Huawei isn't a nice company, but it's a smart company. And a smart company applies smart strategies.

  3. Guest
    August 31, 2020

    That cannot be – if Huawei gives up then USA will start with targeting the next Chinese phone maker Xiaomi 

    Someone has to be the firewall. USA started with ZTE – next it came to Huawei and next will be some other brand. 

    China will have to destroy the American Evil – Huawei has to be the one – develop its own chip and chip making system. 
    even if it means taking time … but Huawei will have to prove that It can work without the American tech – and once this threshold is achieved then from there – there will be no need to look back. 

    Huawei has to set the model on how to break the back of the American bullying. Huawei cannot let me down. I just bought a Huawei phone challenging the American bullying – this was my first phone.

  4. Guest
    August 31, 2020

    This American government is a total desaster, just can not see it, a Chinese company produces better and cheaper hardwear than a US company. China should ban all apple products in China which are anyway overpriced and not better than a Huawei phone. Show your strength Huawei and stay in the market. My next📱 will be again a Huawei. 👍👍👍

  5. sridhar Banuvalli Dattatri
    September 2, 2020

    Everyone wants to be in race on own toes and dominates each other, but bringing political issues into techinical/technology relation would lead to lose-lose situation for every country.If USA have innovation and china has something different in which USA cannot have it. unless club together dish cannot be prepared. Finally i would say no one is correct here, if everyone started their own and than it will be limited to their country. Huawei is a such a big eco system must not fall and must continue to prove their capabiltiy and if they overcome with these hurdles, huawei will become role model to others, not just people only dependent on each other.

  6. Guest
    September 3, 2020

    don't worry china govt + PLA will back huawei up fully whatever it takes to achieve world domination in mobile. don't forget if china want to retaliate all it needs is to ban Apple