Huawei is a technology giant, currently standing as the world’s largest provider of telecommunications equipment. However, this recent development has led to the first time Huawei lost their grasp on the top 5 smartphone companies list. This unfortunate display of rivalry between the two nations has been brimming for a while; back in 2018 Huawei’s board deputy chair, Meng Wanzahu was arrested after being accused by the U.S government for a bank and wire fraud in violation of American sanctions on Iran. Heightening tensions between the countries, sociopolitical as they are in nature, might just prove to be a detriment to both.
Huawei seems to be miserably affected by losing sales due to the U.S sanctions. On 15th May 2019, it was banned by the former U.S president, Donald Trump over fears that China might use the brand as a source to spy on the USA through its 5G technology. Unfounded as such claims might be, they boded poorly for the tech conglomerate. Both the Chinese government, as well as the company, took offence to such outrageous claims by the U.S government, demanding that evidence be produced in lieu of them.
Huawei Has Had A Harsh Year
It was predicted by the chairman of Huawei that 2020 would be a “challenging and “tough” year for the company.
Nicol Pend, a researcher at Canalys, claimed that the tech firm’s inability to provide effective local business due to the pandemic, combined with the long-term effects of the US sanctions, spelled disaster to come. Thus, From No. 1 to No. 6, Huawei smartphone shipments plunge 41% as U.S. sanctions bite.
The Shutdown Of Factories Led To A Huge Fall In Sales
Analysts at Gartner found the shutdown of factories producing handsets for the smartphone makers from all over the globe as the main factor that played a role in causing this plummet in sales.
Rival companies were observed taking over Huawei’s market share, as the data identified that even though Samsung’s sales were slowed down more than 22 percent, it led the market by gaining the lead position with 18.5 percent of the market. However, Huawei managed to scrape itself towards a second place, with a 14.2 percentage of market share. From No. 1 to No. 6, Huawei smartphone shipments plunge 41% as U.S. sanctions bite with a 27 percent drop in its sales. Apple, rather unfortunately, adjusted itself in the third position with a market share of only 13.7 percent, along with a drop in sales by 8 percent.
An interview was conducted with RCR Wireless News at Huawei USA’s headquarters in Plano Texas, where Tan mentioned that Huawei spends an estimate of $11 billion each year for producing goods and services for American companies. He also stated that by investing this amount of money in the U.S, Huawei helps 50,000 people in that country by giving them a job. Hence, banning this Chinese company not only affected Huawei, but the 50,000 U.S.A employees lost their job.
I’m Ava Paul, an experienced news website author with a special focus on the entertainment section. Over the past five years, I have worked in various positions of media and communication at World Stock Market. My experience has given me extensive knowledge in writing, editing, researching and reporting on stories related to the entertainment industry.
