Huawei's third quarter in China was absolutely mind-blowing

Huawei's third quarter in China was absolutely mind-blowing
Because it is banned from accessing its U.S. supply chain, Huawei might not close out this year as the number one smartphone manufacturer in the world as it had hoped. It also had to lower the number of handsets it hoped to ship this year by 10%; it is now targeting a total of 270 million global phone deliveries for 2019, down from the 300 million it planned for at the beginning of the year. Don't get us wrong; by all measures Huawei has had a spectacular year in light of the problems it has faced and continues to face.

The big issue is the inability of Huawei to license the Google Play services version of Android. This means that Huawei's new phones, including the Mate 30 line, cannot install Google's core Android apps including Search, Maps, Gmail, the Play Store, YouTube and others. Now this is not a big deal inside China where Google is a four-letter word, but without Google apps and Android updates, the manufacturer's international sales are feeling the effect of the ban. But when it comes to domestic shipments, Huawei is on an absolutely torrid pace.

With the incredible support of Chinese consumers, who see Huawei as the victim of U.S. bullying, the company increased its shipments of phones in China during the third quarter by a mind blowing 66% year-over-year according to Canalys. And its market share in the country soared from 24.9% during the same quarter last year to 42.4% this year. That means that four out of every 10 handsets shipped in China are Huawei models. The number of units it delivered in the quarter soared from 25 million last year to 41.5 million this year giving it six consecutive quarters of double-digit growth in the face of a tepid smartphone market in the country. While China remains the largest smartphone market in the world, during the quarter handset shipments declined by 3% on an annual basis from 100.6 million to 97.8 million. That makes Huawei's feat even more impressive.

Shipments of Apple iPhone units in China declined 28% during the quarter

There is a huge gap between Huawei and the number two phone manufacturer in China, Vivo. The latter shipped 17.5 million units in the quarter, down 23% from the 22.7 million it delivered during last year's third quarter. As a result, its market share declined from 22.6% in 2018's Q3 to 17.9% in 2019. In fact, all of the Chinese manufacturers on the list suffered through a brutal three month period and all had annual declines of 20% (Oppo) to as much as 33% (Xiaomi).

Apple also saw its shipments in China decline sharply during the three-month period. After a 28% year-over-year decline, 5.1 million iPhones were shipped in China from July through September; in 2018's third quarter, Apple delivered 7.1 million handsets in the country. In a market that Apple still considers to be very important, its market share was 5.2%, down from 7% a year earlier. The new 2019 iPhone models made up 40% of Apple's iPhone shipments in China during the three-month period.

Canalys notes that unless Huawei's name is removed from the U.S. Commerce Department's Entity List (which is the reason for the U.S. supply chain ban), next year could be more difficult for the company. The company is considered a national security threat in the U.S. and while its placement on the list was supposedly done for security reasons, Huawei holds out some hope that it could be used as a bargaining chip during future U.S.-China trade talks. Both countries are embroiled in a trade war right now and even President Donald Trump has suggested that he could order Huawei removed from the Entity List in exchange for favorable terms in any deal.



1. BearHug

Posts: 29; Member since: Jan 27, 2017

Clearly China is propping up Huawei at the expense of even other Chinese brands. Wonder how long that would last.

12. meanestgenius

Posts: 22388; Member since: May 28, 2014

Actually, the truth is that Huawei is just better at making and selling smartphones than they are, with more resources.

22. QuantumRazer

Posts: 153; Member since: Apr 27, 2019

How long? Probably until Trump lifts the trade ban against Huawei. Chinese consumers are not paying any price for supporting the company unlike western people who actually need to endure the lack of official Google Services in order to support them, so as long as the ban lasts and Huawei stays competitive in the Chinese market, people there will keep buying their products.

4. Guseinguliev

Posts: 122; Member since: Mar 04, 2019

Who is interested in this? I personally do not.I will not give a penny for a huawei.

10. TadTrickle

Posts: 97; Member since: Apr 08, 2019

Thank you! Theres so many huawei articles here. Ill tell you the reason. Its the writer alan. He hates Trump. Trump called off huawei sales in the states. These are tds articles from alan

18. Alan01

Posts: 638; Member since: Mar 21, 2012

Yes, it has nothing to do with the fact that Huawei is the second largest smartphone manufacturer in the world. That puts it ahead of Apple, by the way. Regards, Alan

11. S4NDY

Posts: 263; Member since: Mar 14, 2016

but you will still be interested in coming to the comment section of Huawei's article.

14. meanestgenius

Posts: 22388; Member since: May 28, 2014

Not interested, but comments on a Huawei article. That’s interest right there, lol.

15. CristianGMoraru

Posts: 12; Member since: Apr 27, 2019

i am :)

20. QuantumRazer

Posts: 153; Member since: Apr 27, 2019

Clearly you gave enough damn about this company to actually comment on this article. If you didn't care at all about Huawei then you would've just ignored it entirely, but you couldn't because you were interested in it.

5. Poptart2828

Posts: 458; Member since: Jan 23, 2018

All top 5 oem make great phones. I'm eyeing that Vivo nex 3 and oppo Reno right now

6. Farcaster

Posts: 166; Member since: Apr 16, 2018

Huawei dealing with the CCP or something? Why did every other Chinese brand decline other than them?

7. alanrock

Posts: 326; Member since: Oct 04, 2018

sorcery, be good before Huawei comes and binds you.

21. QuantumRazer

Posts: 153; Member since: Apr 27, 2019

Possibly due to: -Huawei offering better quality products than other Chinese OEMs -Good marketing -Strong nationalism within Chinese consumer, which probably will last until Trump ends the trade ban on the company

8. domfonusr

Posts: 1092; Member since: Jan 17, 2014

This is why I am interested to see what Huawei does with Harmony OS; chances are it would take off in China right away, under a furor of nationalistic pride and loyalty, and if other Chinese OEM's buy in, as well, it could really have a good chance of being a third OS to challenge, or at least take up market share against, the iOS/Android duopoly. And if it were successfully implemented in China, and perhaps some other east-Asian nations, then there could be a chance that it makes an international debut. Clearly, there would be concerns over whether the Harmony OS devices would be able to spy on their owners (and some say that Android-flavored Huawei devices already do, but then again it is alleged that America spies on people through their mobile phones of various flavors already), but I think there is a growing population that has accepted that such things are already commonplace, and it's already too late to 'put the genie back in the lamp'. I think there would be a lot of people who would welcome a strong third choice in the mobile OS space, especially one that has a chance to have decent developer support and enjoy some level of popularity in at least one critically-important part of the world. If Huawei can make Harmony OS very nimble on a small amount of RAM, say like 1 to 3 GB, and keep it snappier than Android (but it would not need to be as snappy as iOS), and at least have similar or better functionality compared to Android Go, and have a decent spread of apps developed for it in "HMS", then I would be interested in seeing it commercially released to the world-at-large.

9. domfonusr

Posts: 1092; Member since: Jan 17, 2014

Other OEM's (Samsung with Tizen, Microsoft with Windows Phone/Mobile, Palm/HP with Web OS, Mozilla with Firefox, and BlackBerry, among others) have tried to release or retain a third-horse OS, and have failed; however, I see that Huawei is uniquely positioned at this time, and has resources in place and a population that is loyal, where they could succeed in developing and marketing a third mobile smart-OS, even where others before them have failed.

17. meanestgenius

Posts: 22388; Member since: May 28, 2014

It’s also been reported that Xiamoi, Oppo, and Vivo would adopt and co-develop HarmonyOS with Huawei. That’s about a third of Androids sales going to HarmonyOS if that ever happened. HMS, and Huawei’s own AppGallery specifically, serve over 300 million monthly active users already.

16. meanestgenius

Posts: 22388; Member since: May 28, 2014

This is fantastic new for Huawei. They put out a great, competitive product that challenge the competition, and they often win, IMO. Huawei currently puts out the best smartphones on the market today, especially flagships, IMO. Great features, good design, fantastic cameras and amazing battery life. Kudos to you, Huawei.

19. chenski

Posts: 777; Member since: Mar 22, 2015

Waiting for mate 30pro to be released in Australia...

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