Huawei has to give its dominance over the global and Chinese smartphone market due to the sanctions. However, the phone market loss of Huawei has become a major blessing for recently launched Apple’s iPhone 13.
In the past two years, Huawei has been continuously disturbed by U.S. sanctions. The Chinese tech giant has been accused under a narrative and later it was cut with supplies of essential parts as well as services to build new products such as smartphones.
Huawei’s smartphone market loss:
In May 2019, Huawei has been placed under the U.S. entity list, a program specially designed to restrict Huawei from purchasing required components such as mobile and network equipment chipsets. Since then, Huawei has been hit by 4 rounds of sanctions that impact the company in a very devastating way.
Coming to the results, Huawei is unable to print new Kirin chipset design, had to sell its subsidiary – Honor, and it’s now out of the top smartphone maker and the recently in the absence of 5G chipset, the Chinese tech maker is selling “flagship” phones with 4G connectivity.
The damage is surely there but the company is finding its way to rise up again. However, “once a giant smartphone maker” has left a big opening of opportunity of its competitor in the market, even on the home ground.
The same goes for the premium segment, the Chinese consumers are looking for a new substitute for their premium smartphone choice and what could be better than the new iPhone 13.
Blessing for iPhone 13:
According to a report coming from SCMP, Apple has made strong pre-orders of the iPhone 13 lineup on the Chinese e-commerce platform – JD.com. As of Thursday, the American phone maker has registered over 2 million pre-orders, which surpasses 1.5 million pre-orders of last year’s iPhone 12 lineup on the same platform on the same timeline.
According to the report, the record iPhone 13 pre-order credit goes to the decline of Huawei’s phone market. On the other hand, consumers made an easy choice between Huawei phones and Apple’s in order to get better tech such as 5G.
Huawei has recently launched P50 Pro that comes with a monstrous camera setup and picture quality that surpasses all phones. Despite its premium design and lots of new features, analysts believe it lacks key selling points such as the 5G network.
“There isn’t a smartphone [in the market] which can be a threat to the iPhone 13 above the 5,000 yuan (US$776) price range,” said Qi Counterpoint Research senior analyst Ethan Qi “There isn’t a product that is as strong as the old Huawei Mate series.”
As a matter of fact, Apple isn’t the only one enjoying this market growth. Other Chinese phone makers are also taking their fair share of share left behind by Huawei.