US trade ban on Huawei has a very tangible effect on the company’s home sales. Counterpoint Research now estimates that Huawei’s China market share fell to 16 percent in January 2021. In that context, the technology giant had a 41 percent share in the first quarter of 2020. Although the benchmarks are not entirely comparable (and Counterpoint is shy about numbers), there is clearly a sharp drop.
Huawei’s decision to sell the Honor brand played a role, but Counterpoint attributed the decline mainly to U.S. restrictions. With components such as processors and 5G modems falling short, Huawei is focusing on premium, low-volume phones such as the Mate 40 Pro to make the most of its limited inventory.
The fall of grace has already changed the dynamics of the Chinese market. Oppo became the country’s leading brand for the first time ever in January, with a share of 21 percent, while its brother or sister Vivo was not far behind by 20 percent. Huawei was 16 percent each with Apple and Xiaomi.
The future does not look bright for Huawei. Analysts expect it to decline in 2021. The competition does not stand still either. Oppo plans to launch its flagship Find X3 phones on March 11 and has picked up sales of more affordable devices with the Reno 5 and A series. Meanwhile, Xiaomi recently unveiled the Mi 11.. While Honor can continue the spirit of Huawei’s work, it’s clear that Huawei itself faces bleak prospects in the coming months.