Last year in May, the US government added Huawei to the Entity List, which applies sanctions on the company and restricts it from doing business with American firms. Due to these sanctions, Huawei is running short of chipsets, causing delays in Huawei’s flagship manufacturing.
Recently, NetEase Technology published a report that gives an idea about Samsung is hoping its an opportunity to cover in the Chinese market. But industry analysts said that Samsung will face difficulty to compete with the local smartphone giant, Xiaomi, OPPO, and Vivo.
Due to continuous restrictions, Huawei’s business was very much affected and Huawei has to sell subsidiary brand Honor. Some analysts predicted that Huawei smartphone sales in 2021 will be around 110 million units, which is approx 42% lower down from 2020.
An analyst at Eugene Investment & Securities said: Huawei’s decreasing market share seems to be a good opportunity for Samsung to expand its business and increase its smartphone shipments. It is also expected that Samsung sales will increase by 17% year-on-year in 2021.
Aside from this, Huawei and Honor are now separated, which plays a big part in Huawei’s smartphone sales but Huawei still have an upper hand in the Chinese smartphone market and rapidly increasing its presence in other parts of its home ground.