Huawei rivals mobilize to seize market amid sanctions

Huawei's restrictions on the US market have given its rivals an advantage, as they are scrambling to win over the brand's customers in the US and around the world. Experts say Oppo, Vivo and Xiaomi are taking advantage of the political restrictions imposed on Huawei, which are likely related to its recent sale of subsidiary Honor. In the competitor's problems, these companies see opportunities to strengthen themselves in the Chinese and international markets.

According to Reuters, a Huawei executive said that the company would not be able to maintain production of the main processors for its best smartphones. In fact, the American bans ended up causing great harm to the brand, hindering its participation in the market.

The chart below shows Huawei's power over its rivals in smartphone shipments sold in China in the third quarter, occupying more than 1/3 of the market.

Chart of smartphones sold in China by Huawei and rivals in the market (Image: Canalys)

The trend now is for the brand's share to decline further and further with pressure from competitors both in the Chinese market and in other countries. Also according to Canalys' research, the US Department of Commerce has interrupted Huawei's supply chain, which makes things even more difficult for the company. Thus, it is possible to conclude that at the end of 2020 and beginning of 2021, the brand will experience a significant drop in the market. Xiaomi, on the other hand, could sell around 100 million cell phones during this period, as well as the increase in sales of Oppo and Vivo devices.

Street: Gizmochina.