In the first quarter of this year, the sales of many Chinese mobile phone brands declined. However, Huawei’s mobile phone sales have bucked the trend and soared by 41%. This makes the company the only mobile phone brand with positive growth besides Apple. A few days ago, market research agency Counterpoint released its latest survey data. This data is for the market trend in the first quarter of 2023. In the first quarter of 2023, China’s mobile phone sales fell by 5% year-on-year, the lowest sales figure in the first quarter since 2014.
Amongst the brands in the top 10, Huawei’s performance seems to be more interesting. The brand’s sales volume rose by 41% year-on-year. Although Huawei Mate 50 series, P60 series and the newly launched Huawei nova 10 series do not support 5G, they are still welcomed by the market. Data show that Huawei’s market share in the first quarter has risen to 9.2%. The company is second only to Apple, OPPO, Vivo, Honor and Xiaomi.
Huawei says it cant launch 5G phones
On March 31, at the press conference of Huawei’s 2022 annual report, regarding when 5G mobile phones will return, Xu Zhijun, Huawei’s rotating chairman, said that the mobile phone business is most affected by sanctions.
The US Department of Commerce only licenses 4G chips, and we can only make 4G phones. Huawei mobile phones have improved in terms of camera, folding screen, etc. The brand’s recent sales data reveals many people are still willing to use 4G mobile phones. To buy a Huawei 5G mobile phone, you have to wait for permission from the US Department of Commerce.
While there is a huge theoretical difference between 4G and 5G networks, this difference in many cases is not so obvious practically. If you have a 5G phone with poor optimization, its network speed could be slower than a 4G device.
Why can Huawei not launch 5G phones? The History
Huawei, one of the world’s largest tech brands, has been banned from operating in the United States since May 2019. This ban was enacted due to “security concerns” surrounding the company’s potential ties to the Chinese govt. Let us now examine the reasons behind the ban and its potential impact on the US – China relationship.
Background on Huawei:
Huawei is a Chinese top tech company that specializes in telecommunications equipment and consumer electronics. The company was founded in 1987 by Ren Zhengfei and has grown to become one of the largest tech brands in the world. Huawei’s products and services are used by millions of people around the globe, including in the US.
Reasons behind the ban:
The primary reason behind the ban on Huawei in the United States is national security concerns. The US govt believes that Huawei’s close ties to the Chinese govt and military make its products a potential security risk. The US govt alleges that Huawei could be using its products to spy on American citizens and steal sensitive info.
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Huawei’s links to the Chinese govt:
Huawei has been accused of having close ties to the Chinese govt and military. This is due in part to the fact that the company’s founder, Ren Zhengfei, is a former member of the People’s Liberation Army. Also, there have been allegations that Huawei has received funding and support from the Chinese govt.
Potential security risks:
The US govt believes that Huawei’s products could be used for espionage purposes. They allege that the company could use its products to spy on American citizens and steal sensitive info. The US govt is particularly concerned about Huawei’s involvement in building 5G networks around the world. This tech will play a crucial role in the future of global communications.
Huawei’s denial of the allegations
Huawei has consistently denied the allegations made by the US govt. The company has stated that it has no ties to the Chinese govt and that it would never engage in espionage or other illegal activities. Huawei has also argued that the ban on the company is a violation of free trade and an attempt by the US govt to suppress competition.
Impact on the US-China relationship:
The ban on Huawei has had a huge impact on the US – China relationship. The relationship between the two countries was already strained before the ban, but it has become even more serious since then. The ban has been seen by many in China as an attempt by the US govt to contain China’s rise as a global superpower. China has responded by imposing its own restrictions on US tech brands operating in the country. However, the likes of Apple still sell their phones in China, even claiming the top spot.
Impact on Huawei:
The ban on Huawei has had a huge impact on the company’s operations. The ban has made it difficult for the company to do business in the United States, which is one of the largest tech markets in the world. Also, the ban has led to the exclusion of the company from building 5G networks. This is so in a number of countries around the world.
Huawei has responded to the ban by suing the US govt. The company argues that the ban is unconstitutional and violates its right to due process. Also, it has invested heavily in developing its own tech, such as its HarmonyOS which it hopes will allow it to become less reliant on US tech.
The ban on Huawei in the United States is a complex issue. It raises a number of questions about national security, free trade, and the US – China relationship. While the ban has been active due to concerns about potential security risks. It has had huge impacts on the company and on the global tech industry as a whole. On the long term, we can not tell how this ban will play out.