Huawei Regains Top Spot in Chinese Smartphone Market After Over Three Years

Huawei Regains Top Spot in Chinese Smartphone Market After Over Three Years

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Huawei has reclaimed the top position in the Chinese smartphone market after more than three years, according to the latest data from Canalys.

In the first quarter of 2024, Huawei’s smartphone shipments reached 11.7 million units, representing a 17% market share and an impressive 70% year-on-year growth.

Toby Zhu, an analyst at Canalys, attributed Huawei’s success to the enthusiastic market response to its Mate and Nova series smartphones.

The gradual improvement in the production and supply of the Mate 60 series was a crucial factor driving Huawei’s overall growth. Huawei’s fall from the top of the smartphone market was a gradual process driven by a combination of external factors and internal challenges.

In 2019, the U.S. government placed Huawei on the Entity List, effectively banning American companies from dealing with the Chinese tech giant. This prevented Huawei from using Google’s Android operating system and accessing critical American technologies, including semiconductors.

Huawei Regains Top Spot in Chinese Smartphone Market After Over Three Years

The U.S. also pressured its allies to exclude Huawei from their 5G networks, citing national security concerns. Several countries, including the U.K., Australia, and Japan, banned or restricted Huawei’s equipment in their 5G infrastructure.

As a result of the U.S. sanctions, Huawei’s smartphone sales declined significantly both in China and globally. The company was forced to sell its smartphone brand, Honor, in 2020 for 100 billion yuan ($15.2 billion).

In 2021, Huawei announced its most significant revenue drop ever, with a 47 per cent decline in its consumer electronics arm, which includes smartphones. The company’s total revenue fell nearly 30 per cent to 320 billion yuan ($35.5 billion) in the first half of 2021.

In 2022, Huawei reported its most significant annual profit decline since 2011, with a 69 per cent year-on-year decrease, attributing the drop to a challenging external environment, rising commodity prices, and strict pandemic controls in China.

Huawei’s revenue remained flat in 2022, with a slight increase of 0.9 per cent to 642.3 billion yuan ($90.3 million). The company’s consumer business, including smartphones, declined over 11 per cent compared to 2021.

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