Huawei Q4 smartphone shipments declined by 41% under US sanctions

Customers at a Huawei licensed experience store for appliances on October 30, 2020 in Suzhou, China.

Fred Lee | Getty Image News | Getty Images

Guangzhou, China – Huawei’s smartphone shipments have continued to dip as a result of US sanctions, sending the once-No.1 seller in the world to come down from rivals like Apple.

According to data released on Thursday by Counterpoint Research, the Chinese technology giant shipped 33 million smartphones globally in the fourth quarter of 2020, a 41% year-on-year decline.

Huawei became the sixth-largest smartphone maker in the December quarter, outpacing Chinese rivals such as Oppo and Vivo and overtaking Apple and Samsung.

Data released by Canalys on Thursday showed that Huawei shipped 32 million smartphones in the fourth quarter, down nearly 43% from the previous year. This is the first time Huawei has slipped from the top five in six years, Canalis said.

“Huwaway dramatically recruited most markets as a result of US sanctions,” Canalys Research analyst Amber Liu said in a report.

The latest figures mark a sharp decline for the second quarter of 2020 versus Huawei when it was No. 1 in the world by shipment.

According to research firms, by the entire 2020 year, Huawei was the third largest by smartphone shipment. Huwaway reacted to the latest numbers seeing his third-place position.

“Huawei has always been committed to innovation and dedicated to creating more value for consumers with better products. Over the past year, our smartphone business has seen strong growth, and tablets, PCs and wearables have seen significant growth. We remain confident about the future., “The company said in a statement.

As Huawei’s havoc, Apple shipped 90.1 million phones during the fourth quarter, the largest number shipped by any vendor in the history of smartphones, according to IDC. Apple also posted a quarter of revenue in China.

In fact, US sanctions are taking their toll on Huawei’s smartphone business. In 2019, Huawei was placed on an American blacklist called the entity list that banned US companies from exporting key components and software.

Its biggest impact was cutting Huawei from Google’s Android operating system. This is not a big deal in China where Google services such as Gmail and search are blocked. But in international markets, it has been critical to Huawei’s growth as consumers are used to these services.


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