SHANGHAI (Reuters) – High Chinese language smartphone maker Huawei Applied sciences Co Ltd thrived in 2019 on the expense of smaller Chinese language rivals and Apple (AAPL.O) even because the smartphone market shrank additional and shoppers favored telephones with 5G know-how, information exhibits.
FILE PHOTO: A Huawei firm emblem at Shenzhen Worldwide Airport in Shenzhen, Guangdong province, China, July 22, 2019. REUTERS/Aly Music/File Photograph
Handset shipments for Shenzhen-based Huawei jumped 35.5% to 142 million in 2019, from 104.eight million a yr earlier, in accordance with estimates from market analysis agency Canalys.
Shipments for Apple’s iPhones decreased about 21% year-on-year to 27.5 million. This comes because the home marketplace for smartphones shrank 15% yearly, in accordance with the report bit.ly/2vm4z0T launched on Tuesday.
Progress in smartphone gross sales stagnated in 2018 and 2019 as shoppers postponed purchases, opting to attend for corporations to launch extra 5G-enabled fashions. Huawei has already launched 4 of those in China, whereas Xiaomi Corp (1810.HK) has launched two.
Different Chinese language Android makers are racing to launch 5G telephones within the hope that customers will improve their handsets as China rolls out its 5G community to most massive cities this yr.
Xiaomi’s full-year shipments fell about 21% in 2019. Rivals Oppo and Vivo dropped 17% and 19%, respectively, over the identical time interval.
Huawei stays on the middle of U.S.-China tensions. Final yr, Washington imposed restrictions on the handset maker that barred American suppliers from promoting items and providers to it, citing nationwide safety considerations. Huawei has denied these expenses.
However the restrictions have had little impression on its skill to promote telephones domestically. Nevertheless, dropping entry to Google’s providers had affected the corporate’s enterprise abroad.
The sanctions in truth helped enhance Huawei’s gross sales in China on the again of patriotic shopper purchases. The corporate’s aggressive advertising has helped as nicely.
Huawei’s fortunes picked up as iPhone gross sales lagged in 2017 and 2018, following a peak within the earlier years. Final yr, Apple provided reductions on iPhones to spice up gross sales, a transfer that Chief Govt Officer Tim Cook dinner later stated was profitable.
Canalys estimates iPhone gross sales fell 12% within the quarter ended Dec. 31. Within the previous quarter, gross sales had fallen 28%.
Nevertheless, this yr may very well be a greater one for Apple, with the corporate anticipated to launch its first 5G-enabled iPhone.
In line with Nicole Peng, who tracks China’s smartphone sector at Canalys, the corporate’s newest iPhone 11 mannequin is the best-selling 4G machine in China. Its older fashions are nonetheless dragging down total gross sales.
Reporting by Josh Horwitz; Enhancing by Maju Samuel