US ban risks one third of Huawei smartphone sales

Huawei

Latest data from Fubon Research shows that Huawei risk losing close one-third of its global smartphone shipment should the US ban persist without a final resolution.

Huawei, the world’s second-largest smartphone maker, is facing partial US ban after President Trump signed an executive order blocking the company from doing business in the US and by extension, American ally countries.

The US ban on Huawei involves goods and services with 25% or more of U.S.-originated technology or materials, and may, therefore, affect non-American firms.

Alphabet’s Inc., Google, telecom chipset designer, ARM Holdings and UK’s EE have all placed a partial or total ban on Huawei’s services and partnerships.

Latest data from Fubon Research and Strategy Analytics says Huawei could see smartphone shipment crash between 4% and 24% in 2019 if the ban stays put, according to Fubon Research and Strategy Analytics.

Reuters News cited unnamed experts who said they expect Huawei’s shipments to slide over the next six months but declined to give a hard estimate due to uncertainties surrounding the ban.

“Huawei may be wiped out of the Western European smartphone market next year if it loses access to Google,” said Linda Sui, director of wireless smartphone strategies at Strategy Analytics.

She predicts Huawei handset shipments will decline another 23% next year but believes the company could survive on the sheer size of the China market.

Fubon Research had previously forecast Huawei would ship 258 million smartphones in 2019. The research company said it now expects the company to ship just 200 million in a worst-case scenario.

Data from IDC shows that Huawei commands nearly 30% of the global market. The company shipped about 208 million phones last year. This includes shipments within and outside of China.

However, there seems to be no direction for talks between the US and China.

Earlier today, Chinese Foreign Ministry spokesman, Lu Kang, spoke to denounce ‘lies’ and ‘rumours’ by the US on Huawei’s alleged links with the Chinese Communist Party, CCP.