Washington’s ongoing war on Huawei has apparently had the opposite effect in China, where reports show that the telecom giant has captured a record share of the Chinese smartphone market, while Apple’s sales continued to decline.
Huawei continued to extend its lead in the third quarter of 2019, and it now commands 42 percent of China’s smartphone market, which is far above both local competitors and US competitor, Apple.
Reports show that Huawei shipped 41.5 million smartphones in China from July to September, marking a 66 percent year-on-year growth. Meanwhile, Apple’s sales in the region continued to fall, and Apple’s market share in mainland China dropped from 7 percent down to 5 percent.
So it appears that with the ongoing criticism from the US government, not only are Chinese buyers turning to Huawei even more, but they are also turning away from the American alternative.
The latest sales increase Huawei’s lead at a crucial time when the trade war is still ongoing and there is no indication the US is going to back away from the restrictions it has placed on the Chinese tech giant.
Researchers noted that “Its dominant position gives Huawei a lot of power to negotiate with the supply chain and to increase its wallet share within channel partners.”
Meanwhile, not only are companies like Apple losing sales, but US chip makers that rely on Huawei stand to lose more than $56 billion dollars in revenue over the next 5 years, if the US ban on Huawei remains.
Apple has been late to the game on 5G, with companies like Huawei and Samsung already rolling out their own models of 5G phones. Even though the iPhone 11 model included an updated camera, which is something users has been calling for, it still only has 4G technology. But we could be seeing a 5G iPhone in 2020.
Reports claim, “Apple is mobilizing suppliers to produce its first ever 5G iPhones next year, with the three flagship models also set to include the most advanced mobile processors available and leading-edge screens.”
Apple is expected to ship more than 80 million of these new iPhones, which is to say they expect them to be very popular. But there are concerns that by waiting so long to adopt the technology, Apple won’t be able to keep up with companies Huawei and Samsung that already have precedence in the 5G market.
The Federal Communications Commission is set to hold a vote on November 19 to decide on whether to ban cellular providers from using government subsidies to buy equipment from Chinese companies Huawei and ZTE.
The chairman of the FCC released a statement saying, “When it comes to 5G and America’s security, we can’t afford to take a risk and hope for the best. We need to make sure our networks won’t harm our national security, threaten our economic security, or undermine our values.”
If those vote passes, it will target not only Huawei and ZTE, but any supplier the US designates as a “national security risk,” so the move could have much greater implications on the future 5G network in the US in the long run