The trade war between the United States and China has been going on since 2018 and has affected Chinese and American companies. Huawei is a particularly targeted Chinese company. Although the U.S. decision to blacklist Huawei doesn’t seem to have hindered the company’s sales too much last year, as it posted growth in 2019, that should change in 2020.
Now according to The Information, sources say Huawei expects smartphone sales to drop 20% this year due to the U.S. ban on banning partnerships with Google and other U.S. companies. While Huawei had a great year in 2019 with growth of more than 25% and 240 million phones delivered, it now plans to sell “only” 190 million to 200 million phones in 2020.
Image credit: ejinsight
The delayed decline is partly explained by the annual telephone cycle. Huawei is able to continue selling its P30 series and other phones that had already been shipped to the United States before the ban came into effect, so these models have Google services. But these devices are now starting to be replaced – the P40 Pro is announced on March 26. Google pulling Huawei’s Android license makes Huawei phones more difficult to sell in Europe and other regions where many users are used to Google apps, although there are alternatives like Huawei’s AppGallery.
Huawei is still growing in China and other regions, but it could now face a difficult period when expanding into Europe and the United States.
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KitGuru says: Do you have a Huawei device, if so, what do you think of their products? What do you think will happen to Huawei in the future?
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