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China’s Huawei Becomes Highest Smartphone Seller In The World In Q2, Surpasses Samsung

China’s Huawei Becomes Highest Smartphone Seller In The World In Q2, Surpasses Samsung
China’s controversial tech giant Huawei Technologies became the largest smartphone seller in the world for the second quarter, beating South Korea’s Samsung. This development also highlighted the resilience of the Chinese market in this field even in the face of a plunge in global demand for smartphones because of the novel coronavirus pandemic.
According to data from research firm Canalys, in the April-June quarter, 55.8 million devices were shipped by Huawei which was higher than the shipment of 53.7 million smartphones by Samsung. 
The Chinese tech giant has faced sanctions and a ban in the United States for its telecom equipment and this has disrupted its business overseas. However the company’s dominance in its home market is underscored in the latest numbers about its smartphone sales.
Almost two thirds of all smartphones sold in China currently belongs to Huawei, the Chinese market was one of the first to take a hit form the novel coronavirus pandemic as it had emerged within the country and later spread from there. However the Chinese economy has since reclaimed ground with the slowing down of new infections of the virus.
And because of resurgence and rising incidents of coronavirus infections in other countries, those Smartphone makers that dominant such markets are still struggling.
In the latest completed quarter however, there was a 5 per cent year on year drop in the sale of Huawei’s smartphones while a 30 per cent year on year drop in sales was reported by South Korea’s Samsung because of a drop in demand in some of the key markets Samsung including Brazil, the United States and Europe.
“Our business has demonstrated exceptional resilience in these difficult times,” a Huawei spokesman said.
Huawei reported a 8 per cent year on year growth in sale in its home market of China but the company’s overseas shipments dropped by 27 per cent during the quarter.   
According to a report published the news agency Reuters quoting a senior Huawei employee with knowledge of the matter, once markets outside off China open up and recover, the Chinese company’s stint as top seller may prove to be short-lived.
Smartphone demand will see a surge in the second half of the year, expects Samsung, the company said on Thursday.
Huawei has effectively been banned by the United States from accessing and making use of Google’s services which has damaging the attractiveness of the Chinese company’s phones abroad. This measure by the US has also limited the company’s access to chips that are considered crucial for development of phones for 5G networking.
As much as $25 billion in revenue from several Asia-based firms could be wiped out because of the latest US restrictions on Huawei, S&P Global Ratings said in a report on Wednesday. Huawei has yet to publicly address the impact these curbs will have on its operations.
Nicole Peng, vice president of Mobility at Canalys, said that there was no clarity about what had been the role of 5G smartphones of Huawei and its high-end models that are most vulnerable to the restrictions in the growth in sale for the comoany in the second quarter,

Christopher J. Mitchell

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