Huawei Expects Massive Overseas Phone Sales Drop Due to US Ban
Huawei anticipates a steep 40% to 60% decline in international smartphone shipments following the US blacklist that restricts access to Google services. The company plans to compensate by aggressively expanding its domestic market share in China.
Huawei expects a massive 40% to 60% drop in international smartphone shipments as the US blacklist severely impacts its core business. Internal estimates show a potential loss of 40 million to 60 million phones this year, which represents nearly half of its overseas sales volume from 2018. The company even considers pulling its upcoming Honor 20 model from European markets like France and the UK if early sales disappoint.
The US blacklist prevents Huawei from accessing crucial American components and software, including Google's Android operating system updates. Without these updates, overseas Huawei phones lose the ability to run popular apps like Google Maps, Gmail, and YouTube. Analysts warn that this lack of access to the Play Store heavily affects markets in Europe, Japan, and Latin America.
To offset this devastating international decline, Huawei focuses on dominating its home turf by aiming for up to half of the Chinese smartphone market. The company continues to deny Washington's accusations of aiding Beijing in espionage. Ultimately, Huawei pivots its strategy toward domestic consumers as its global smartphone presence faces unprecedented uncertainty.