Huawei is still facing the U.S. ban and its smartphone business is going down. The company has already sold its Honor sub-brand and it is no longer releasing phones as usual. Nevertheless, Huawei is not giving up just yet. In fact, the Chinese manufacturer will release a couple of flagships this year. According to recent reports, Huawei has notified its suppliers that orders for smartphone parts will drop by more than 60% in 2021. However, Huawei did not say why it is reducing its orders. According to Huawei, its orders for this year will be for 70 to 80 million smartphones. This is a far cry from the 189 million phones it shipped last year.
Not long ago, Canalys released the Q4 global smartphone shipment report for 2020. The data show that Huawei has fallen out of the top five. Although the mobile phone business is facing difficulties for the time being, Ren Zhengfei made it clear in a recent media interview that Huawei will never sell its smartphone business. “We can transfer 5G technology, but we will never sell the mobile phone business.”
Regarding chips, Ren Zhengfei believes that it must rely on globalization to solve the problem. He added “No matter what, we will never give up the idea of globalization. No matter how sanctions and blockades are, we will persist in globalization. When the global chip supply is surplus, someone will come to us to buy chips, I think there will be this era.”
Huawei: We will never sell our smartphone business
Ren Zhengfei, founder and CEO of Huawei, said on Tuesday that Huawei will survive the sanctions imposed by Donald Trump and look forward to a renewed relationship with the United States when new President Joe Biden comes to power.
Joe Biden took over as head of the White House last month. Huawei now expects the new US president to improve relations between the two countries, as well as American and Chinese companies. Ren Zhengfei said Huawei remains determined to buy equipment from US companies and that restoring Huawei’s access to US goods is mutually beneficial. In addition, he suggests that the restrictions on the Chinese tech giant will hurt US suppliers.
“We hope the new US administration would have an open policy for the benefit of American firms and the economic development of the United States,” said Ren. “We still hope that we can buy large volumes of American materials, components, and equipment so that we can all benefit from China’s growth.”
The leader of the company also denied information that Huawei is going out of the smartphone business.
“We have decided we absolutely will not sell off our consumer devices, our smartphone business,” he said.
The company will unveil the flagship foldable smartphone Huawei Mate X2 on February 22nd; and the Huawei P50 is expected to be announced in March.
Huawei completely defeats Apple in the Chinese phone market in 2020
According to CINNO Research and Canalys, Huawei still comfortably leads the Chinese smartphone market. According to the International Data Corporation (IDC) mobile phone quarterly tracking report, China’s smartphone market shipments in the fourth quarter of 2020 were approximately 86.4 million units, a slight increase of 0.3% year-on-year.
In the fourth quarter, shipments of Apple, OPPO, Vivo, and Xiaomi all increased significantly. In terms of specific rankings in the fourth quarter, Huawei, Apple, OPPO, Vivo, and Xiaomi ranked in the top five. Although Huawei fell 34.5% year-on-year, it still ranks first with a 25.1% share.
Looking at the entire 2020, Huawei is still miles ahead of the competition. It has a 38.3% market share which is a 0.1% decrease from its 38.4% market share of 2019. In second place is Vivo with a 17.7% market share. This shows that Huawei in the first position has a market share that is over 50% higher than second-place Vivo. Oppo, Xiaomi, and Apple rank third to fifth respectively. Except for Apple’s year-on-year growth, the other four manufacturers all have different degrees of decline.
In the fourth quarter, the Chinese 5G mobile phone shipments were about 60 million units. In 2020, the cumulative shipments were about 167 million units, accounting for more than 50%.