Skip to main content

Huawei feels impact of US sanctions on its smartphone sales in fourth quarter

Five out of the top 10 smartphone manufacturers expanded in the fourth quarter of 2019 compared to a year ago.

According to IHS Markit data, shipments slipped to 359.2m units, down 1.5% from 364.8m units in the fourth quarter of 2018.

Samsung grew 1% year-over-year, rising to 70.7m units, up from 70.2m units. Apple grew 5% to 67.7m units, up from 64.3m units. Xiaomi, after being under pressure for much of 2019, had a strong growth quarter with a 36% increase to 32.7 million units, up from 24 million.

Motorola continues to reclaim market share with a modest 2% growth year-over-year to reach 10.3munits in the fourth quarter. This is the first time since the fourth quarter of 2018 that Motorola broke the 10 million-unit-shipment mark.

“Despite achieving double-digit growth for the year, Huawei in the fourth quarter started to feel the impact of continued headwinds from US government trade actions,” said Jusy Hong, smartphone research and analysis director at IHS Markit.

“After three quarters of significant growth in 2019, Huawei’s shipments declined by 7.4% year-over-year in the fourth quarter.”

Until the fourth quarter, Huawei had weathered the uncertainties of a US technology ban well, shipping almost 60m units in the first quarter, followed by 59m in the second quarter and 66.8m in the third. While the US government has granted licenses to some US businesses to continue selling products to Huawei, Google is not one of them so far.

In the fourth quarter, Motorola took the wraps off of its foldable device, the new RAZR. Unlike foldables from Samsung and Huawei, this device uses the foldable screen to make the handset smaller. However, the device has not yet reached consumers and therefore did not contribute to Motorola’s shipments in the fourth quarter.

Lastly, Tecno grew 13% year-over-year in the fourth quarter, to 4.3m units, up from 3.8m units—rounding out the top 10 smartphone OEMs.

Global shipments of Realme smartphones expanded 275% year-over-year, rising to 7.3m units in the fourth quarter of 2019, up from 1.9m units during the same period in 2018.

While Realme burst onto the scene as a standalone entity brand in the third quarter of 2019 by shipping more than 10 million units, the company was not able to sustain this aggressive growth in the fourth quarter.

Shipments outside the top 10 declined from 70.3m units in the fourth quarter of 2018 to 57.1m units in the fourth quarter of 2019—a drop of 19%.

Apple regained its footing in the fourth quarter of 2019, following a couple of years of decline. The new iPhone 11 series appears to be resonating with the consumer base. Further growth in the company’s wearables and services segments points to add new users potentially joining the Apple ecosystem.

Looking ahead

Hong said the tensions between the US government and Huawei will continue to linger and will have an impact on the company and the overall market.

The outbreak of the coronavirus in China is set to affect the smartphone market, with Apple announcing that this challenge is likely going to impact its business. Other OEMs will be faced with similar supply chain challenges as well.

“Huawei now is launching its latest flagship smartphones internationally,” said Anna Ahrens, senior analyst at IHS Markit.

“However, in markets like Western Europe, the lack of Google services will make Huawei phones a hard sell for consumers, especially considering that the company’s Mate series is positioned squarely in the premium price segment.”

Aside from Samsung and Huawei, most of the other major smartphone OEMs ended the full year with shipments down compared to 2018. 

Shipments totalled 1.38b units in 2019, 2.2% down from 1.41b in 2018. This decrease was slightly less than the 2.4% decline from 2017 to 2018.

Just as in 2018, Samsung ended 2019 as the leader in smartphone shipments. The South Korean company shipped 294.8m units in 2019, up 1.7% from 289.9m in 2018.

“Samsung’s focus on the mid-range paid dividends in 2019, helping the company to fend off global competition from Huawei, Xiaomi, Oppo and vivo,” said Gerrit Schneemann, senior analyst, smartphones, at IHS Markit. 

Huawei finished 2019 second to Samsung. For the year, Huawei recorded growth of 16.7% compared to 2018—reaching 240.6m units in 2019, up from 206.1m in 2018.

Xiaomi grew 4% year-over-year, with shipments rising to 124m units in 2019, up from 118.7m in 2018. India remains a critical market for Xiaomi, but the company is facing increasing competitive pressure in the country.

One of Xiaomi’s key competitors in India currently is ninth-ranked Realme. The Realme brand first entered the market in the second quarter of 2018 and was spun out of Oppo in the third quarter of 2019 to focus on the Indian market.

The brands iTel, Tecno and Infinix—all owned by China’s Transsion Holdings— collectively grew by 9.6% in 2019, reaching 37.3m units in 2019, up from 34.4m in 2018.



from TechRadar - All the latest technology news https://ift.tt/3aT75fw

Comments

Popular posts from this blog

Mother's Day 2020 gift ideas: 18 gadgets and gizmos for tech-savvy Aussie mums

Raising a family is not an easy job, and the women who care for us each and every day deserve to be told how special they are each and every day. While we tend to forget to do that, Mother’s Day reminds us we need to celebrate the women in our lives, whether they’re our own mothers or our wives and partners helping us raise the young ones. Mother’s Day 2020 is fast approaching (with under two weeks to go), and there’s a pretty good chance you won’t be able to take her out to her favourite restaurant this year, or even get to a store to shop for something she might like. So we have to get creative, and TechRadar’s Australian team has put together this little list of great tech gift ideas that you can buy online and have delivered in time for May 10. But you will need to get a wriggle on as delivery supply chains are under strain with more people shopping online. Whether she’s a whiz in the kitchen, loves to cosy up with a book or entertain at home, we’ve got a gadget or gizmo that’s s...

Amazon Australia has specials on Bose products all this week

December may have just begun, but the world's largest online marketplace is already feeling the Christmas spirit.  To kick off the month’s festivities, Amazon Australia is celebrating  ‘7 Days of Deals’ with Bose's superb audio hardware discounted each day. To begin with, the very popular (and rightly so) Bose QuietComfort 35 II and the more expensive Bose Noise Cancelling Headphones 700 are available for less. To sweeten the deal, Amazon will throw in an Echo speaker as a bonus as well. When you purchase the superb Bose Headphones 700, you will receive a free Amazon Echo Show 5, or if you’d prefer the Bose QuietComfort 35 II, you’ll receive a complimentary Echo Dot. The offer is valid until December 8, or while stocks last. You can buy the same bundles, for the same price if you make the purchase via the Echo Dot or the Echo Show 5 product pages on Amazon. Just make sure you select the bundled headphone in the 'add other items' section on the right. Best noi...

Valentine's Day flowers: the best online flower delivery services

February 14 will be here before you know it, and if you, like many others, are searching for that perfect gift, then placing an online order for Valentine's Day flowers is always an easy and romantic option. You can order a beautiful floral arrangement in minutes from a variety of online retailers, including; 1-800-Flowers, Amazon, ProFlowers, Teleflora, and many more. To help you sort through all the Valentine's Day offers, we've rounded up the best online flower delivery services in both the USA and the UK and listed their current promotions. We've also included delivery charges and made sure to mention if you can allocate specific days for delivery. There's a fantastic range of bouquets and gifts available from our selection of florists below, and online delivery from a specialist means you don't have to worry about the usual hassle of buying from a store and getting them home safely. We'll be updating this page as we get closer to the big day so you...