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Huawei is in trouble. What's next for the company?

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Huawei has no optimistic forecasts for the future. On the domestic market, it is still a leader in only one industry (5G construction). However, also here he has a big problem.

The US government's ban on Huawei components has hit the company, which has lost its dominant position in China.

As Counterpoint Research estimates, the company's market share fell to 16% in January, and in the first quarter of last year, including units sold, this share was as high as 41%.

Due to US restrictions, the company had to sell the Honor brand. Due to problems with the supply of 5G processors and modems, Huawei focused on the high-end market segments.

Other Chinese brands like Oppo and Vivo are taking advantage of Huawei's troubles. In January, Oppo took first place in China with the 21% involved. Vivo hits 20%. on the market. Huawei's situation in the Chinese market this year will be very difficult. Oppo will launch its flagship product Find X3 on March 11 and increase sales of the Reno 5 and A series. Xiaomi has just started selling Mi11 smartphones.

Therefore, it cannot be ruled out that Huawei will eventually be dethroned beyond the top five phone manufacturers,

Of course - Huawei is not only smartphones and 5G. It is also computers, watches, glasses and all other gadgets. The problem is that while they may sell well (especially laptops), the income from them is unlikely to make up for the losses suffered by the mobile sector. For example, if Huawei is driven out of Europe or loses to competitors (such as Nokia, Ericsson, vivo, Cisco), it could be the giant's ultimate horses.

If it does, it will be one of the most disastrous failures in the history of the science and technology industry, perhaps only comparable to what happened to Nokia in ten years

What do you think?


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