In an interview given a few days ago, the founder and CEO of HuaweiRen Zhengfei has expressed his will for the restoration of relations between the United States and his company. Zhengfei has confirmed his willingness to negotiate with the new US president on common development and the benefit of “Allowing US companies to supply goods to Chinese customers favors their own financial performance.”
But until this happens, Huawei’s sales in the smartphone business continue to decline and Apple could be the main beneficiary. Huawei is currently unable to do business with US companies because the Trump administration placed it on the Commerce Department’s commercial blacklist, citing national security fears.
Consequently, Huawei’s orders for smartphone components could fall by 60% in 2021, which could be an additional boost for the iPhone in mainland China.
Huawei continues to lose due to US sanctions
According to data from Evercore Research Institute, iPhone sales in China in January grew 158%. And the strength of Apple’s iPhone 12 5G in China is expected to continue into Apple’s fiscal second quarter.
A report published by Nikkei Asia claims that Huawei intends to purchase parts for 70 to 80 million smartphones in 2021. This marks a decrease from the 189 million smartphones that Huawei shipped in 2020, according to figures from market research firm IDC.
Huawei’s orders have consisted solely of components for 4G smartphones, as US restrictions have prevented the company from purchasing components for 5G devices. Some vendors reportedly anticipated that final orders would drop further to around 50 million units.
US sanctions include Restrictions why Huawei cannot license Android from Google, which also hampers your smartphone business outside of China.
According to reports from sources who have not wanted to be identified, the new US administration will not retract its current trade tariffs on China imposed by the Trump administration and plans to “conduct intensive consultation and review with US allies.”
However, and although the company has decided in other verticals of the industry, including in the development of 5G networks that benefit the use of the iPhone 12, Huawei will continue to fight and in the words of its founder: “We will never sell our device business.”
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