Huawei Consumer Business CEO Yu Chengdong delivered a speech on “Terminal Industry Outlook and Shared Ecology” at China Information Technology Summit 2020. In his speech, Mr. Yu revealed that Huawei Consumer Business had sales revenue of 255.8 billion yuan ($ 36.7 billion) in the first half of the year. In addition, it also revealed that Huawei shipped 105 million smartphones worldwide. This makes it the number one smartphone brand in the first half of this year.
According to Yu Chengdong, in the second quarter of this year, Huawei’s global mobile shipments surpassed Samsung. This gave the Chinese manufacturer the number one in the world. In addition, he said that Huawei “was handcuffed” by sanctions and that it was an unfair race. Nevertheless, the company still reached the first place. What does this say about Huawei’s capacity? Staying for almost two years and exceeding other trademarks with bans is commendable.
Mr Yu believes Huawei would have overtaken Samsung last year if it had not been banned in the United States. However, he predict that Huawei’s global smartphone shipments could be lower than last year’s 240 million units. This is obviously due to the multiple US sanctions. The company now has to deal with chip supply. Cannot work with TSMC due to US ban. This means that it can not produce Kirin brands.
However, apart from the mobile phone industry, Huawei consumer products are growing rapidly. Among them, Huawei portable products, including smartwatches are ranked first in China and second in the world. In the tablet market, it ranks first in China and third in the world. In terms of the laptop market, it ranks second in China.
According to the latest IDC report, Huawei shipped 55.8 million mobile phones worldwide in the second quarter, with a market share of 20.2%. Huawei’s domestic market share exceeded 45%, another all-time high. Reports claim that Huawei’s second-quarter growth came mainly from the mid- to high-end markets.
It will be interesting to see how Huawei will deal with the lack of chip supply. In fact, we can not say what will happen in the Huawei P50 series scheduled for next year. Maybe Huawei should turn to MediaTek for mid-range and high-end brands. For low- and mid-range brands, Chinese foundries such as SMIC can produce Kirin chips. However, it remains to be seen whether MediaTek can handle Huawei orders. We still can’t say if a law will wake up to prevent Huawei from partnering with MediaTek.