A report suggests that the Chinese firm will decrease its production of smartphones next year, a move that its rivals will take advantage of.
The mobile phone market begins to recover after a few stable months, although it will not rebound until 2022. A recent market study conducted by Strategy Analytics reveals that smartphone sales will be 1.26 billion this year, representing a decrease of 11% compared to the previous course. However, analysts also predict that in 2021 Huawei will fall, while Xiaomi and OPPO will seize the occasion.
The report estimates that Samsung will sell 256 million phones this year, a figure that would be worth the Korean firm to stay in the first position with a market share of 21%. The second largest smartphone supplier will be Apple, which will ship 192 million units, with a 15.3% share. For its part, Huawei will occupy the third position of this ranking by selling 190 million units in 2020 -15% of the market share-, according to analysts.
On the other hand, Strategy Analytics also estimates that when Huawei runs out of its processor inventory in 2021, its market share can plummet to 4.3%. Analysts reflect that other Chinese manufacturers, such as Xiaomi, OPPO and Vivo, will benefit from the sharp fall of Huawei next year, something that they reflect from the Korea Herald.
Analysts also believe that the general smartphone market may rebound, and largely thanks to the support of new technologies such as 5G, folding screens and the recovery of the global economy. Finally, it should be noted that the report indicates that Samsung led in 33 of the 45 smallest smartphone markets in the second quarter of 2020, such as Thailand and the Southeast Asian (SEA) nations of Indonesia.
Huawei will produce only 50 million phones in 2021, according to another report
A report by The Elec suggests that Huawei plans to produce around 50 million smartphones in 2021. A figure that represents a massive fall of 74% compared to what the tech giant is expected to sell this year: 190 million units.
The main reason for this reduction in smartphone production is due to the sanctions imposed by the United StatesEven one analyst has already predicted that the firm could leave the market in the worst case scenario.
A prohibition that prevents US companies from working with the Chinese company or buying any type of component from it until that date, and which began last year. Some restrictions that will also affect the firm’s mobiles in another way, since could run out of processors.
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