Huawei’s situation is complicated, much more than what many may seem at first glance, and it is that it faces problems not only in international markets, especially in the United States where Chinese technology continues to be vetoed today. Now it also has to face a slow but already identified decline in its local market, China, the key to its success a few years ago, and the main asset of its livelihood today. There were times, already sadly distant for the company, in which Huawei was considered “The Chinese Apple”, and with that business card he approached an international expansion that, until the blockade by the Trump administration, took the company to the top. However, and although the first months after the US veto did not seem to deflate their figures, for some time now it does seem that the impact is every day greater and, consequently, their numbers suffer significantly. It seems incredible that Just a year ago, Huawei was the company that sold 55.8 million devices in a single quarter, thus ahead of Samsung with its 53.7 million units sold, and thus became the best-selling brand in the world. However, even then, in the second quarter of 2020, its sales were already down 5% in China compared to sales in the same period of the previous year. Paradoxically, at that time Huawei was reaching the top, but was beginning a rapid decline. Many thought at the time that Huawei had dodged the bullet, that the US veto had not weakened the technology, and the decline in sales in China was attributed to the circumstances associated with the pandemic, but seen now with a little perspective, It seems like it was the sign of something else, and that the executives of the company had already accused him and surely they would have already started working on it. Today we are no longer talking about perspectives, but about results, and according to what we can read in an IDC sales report, Huawei is no longer among the companies that sell the most smartphones in China, remember, your local market. As you probably already know, consultants usually prepare sales lists in which they show the individual data of the main companies and, closing these tables, an aggregate with the sales of the rest of the market, a group that is usually called with the generic “Others” . A category in which, for the first time in years, the company’s sales are added. In the ranking we find, in descending order, Vivo (23.8%), Oppo (21.1%), Xiaomi (17.2%), Apple (10.9%) and Honor (8.9%). And it is very surprising, knowing the positions that Huawei occupied just a year ago, to see that in the second quarter of this 2021 it has not even reached 9% of sales in its country, which would have given it the fifth position. With this result, it disappears from the list of the best-selling brands. There are two paths that Huawei can take today and, luckily for technology, both are compatible. On one side, the most obvious thing is to try to improve your sales. Your efforts with HarmonyOS could be positive in this regard, especially if you attract other manufacturers (both local and international) to your platform. The problem? That probably many of these see the opportunity to get rid of a formidable rival, and consequently prefer to stay on Android, pending of the next movements of the US administration. The second way to try to guarantee its persistence is diversification. Huawei not only manufactures smartphones, we all know this, but this diversification must not only be maintained, but also increase and, as far as possible, internationalize. For example, in April of this year we met the Arcfox Alpha S, his first car and that, due to characteristics, design and performance, points directly to Tesla. If the smartphone market is no longer your fiefdom, the solution that seems more reasonable is to look for new markets and try to repeat in them the success that you have enjoyed until less than a year ago. It is not an easy move, of course, but it is possibly essential for your livelihood.
CNY - Chinese Yuan Renminbi