US Ban Is Finally Showing Its Effects On Huawei’s Business – Huawei has resisted the gravity of the US ban. Notwithstanding being banned from using Google’s services. Huawei’s overall smartphone sale remains to expand on a year-on-year basis due to its strong internal demand pushed by “patriotic buying.” The help of Chinese people helped Huawei to cushion the impact of falling smartphone sales in the global market.
But it looks like the dedicated support of Chinese is working down. Huawei is now required to sell 40 million fewer smartphones than what they expected a couple of months ago. You see, in October this year, Huawei exceeded 200 million smartphone sales 64 days quicker than what they did in 2018.
Also, at that time, the founder and CEO of Huawei announced that the order to sell 270 million smartphones at the close of 2019. Most of us believed that it was totally possible. But the newest news is assuming they’re not even near to that number.
Huawei’s CEO Richard Yu has announced through a private meeting that the company will ship about 230 million smartphones globally this year. Which is 40 million smaller than what they expected just several months ago. You know, the 4th Quarter is important to all of the smartphone makers. It’s the Holiday quarter, and people like to waste money on this timeframe.
Every company sees an improvement in sales in this quarter. But Huawei, on the other hand, is noticing a huge decline. They assumed they would sell 7 million devices per week, but rather, they are selling 3 million devices per week. So what correctly resulted in the 4th quarter? Why they’re noticing a decline all of a sudden?
You see, the idea the US blacklist had little to no impact on the sales of Huawei was that they had a relatively new lineup of phones. Which all had Google services. But now they’re starting to age, and they no longer appeal to consumers. I’ve talked about this in the past. The approach that Huawei is taking where they are selling new phones with Google Services by just rebranding the old phone will only work for a short amount of time. It won’t work long term, and that’s exactly what’s happening.
New Huawei phones are not appealing to the consumers because either it doesn’t have Google services or it has google services. But the phones are old, and people realize that it’s just a rebranded phone with old internals. A different big reason is China. Almost all of their sales came from China. And people bought Huawei phones to show their support against the US ban. But you see, the human brain is designed to forget information.
Huawei cannot expect that Chinese people will keep buying their phones out of pity forever. As the dust is settling, so do the dedicated support from Chinese people. And they’re buying phones from different companies. You see, this is going to get worse. The actual effect of the ban will be seen next year when almost all of Huawei’s new phones won’t have Google apps. And western people wouldn’t care about these phones. And with the support of Chinese people going down. I wouldn’t be surprised if Huawei goes down as well unless the Chinese government forces its citizens to buy Huawei phones.