The biggest beneficiary of the US government’s war against Huawei could be Samsung.
Samsung’s position as the world’s largest smartphone (smartphone) manufacturer has been threatened by Huawei’s strong rise in recent years. In addition, the problems that Samsung’s foldable (foldable) screen phone encountered after its debut a little while ago made the company postpone the date of this “super product”, making it No. 1 of the Korean company added a wobbly part.
President Donald Trump’s decision to put Huawei on a list of banned US components and technology can bring the help that Samsung needs to maintain the “throne” in the smartphone and business Insider market. identify.
The race between Huawei and Samsung.
The US ban has forced leading technology companies such as Google and Intel to halt or prepare to stop providing Huawei. This means that phones manufactured by Huawei in the future will not use the Android operating system, the world’s most popular mobile operating system software.
Huawei said it has made its own smartphone operating system and can put it into use next year, but there is no guarantee consumers will buy Huawei phones if those products are on the page. Be a completely new and strange operating system. Huawei’s phone capability is higher when users “turn back” when not accessing system level on popular services at Google such as Gmail or Maps.
And that may be the good news for Samsung, the company that is being occupied by the Chinese giant.
According to IDC data, in the first quarter of this year, Samsung accounted for 23.1% of the global smartphone market, down from 23.5% in the same period last year. Samsung’s first-quarter smartphone sales fell 8.1%.
Meanwhile, Huawei’s smartphone market share increased from 11.8% to 19% in the same period, with sales increasing by more than 50%.
Apart from Huawei, no other smartphone company approached Samsung so far in terms of market share. Apple ranked third in the first quarter, holding 11.7% market share, while Xiaomi ranked fourth, 8%.
If Huawei’s sales plummeted because of US sanctions, Apple and Xiaomi still have a long way to go if they want to really threaten Huawei’s No. 1 position.
Apple can “spread”.
In addition, some analysts believe that the US’s decision to “take down” Huawei could hurt Apple’s business in China. A UBS bank report recently stated that the way the US treats Huawei poses a big risk to Apple, because the nationalist spirit of Chinese people has repeatedly affected foreign goods in The world’s most populous market.
Samsung does not have a large market share in China – it is not even listed in the top 5 smartphone brands in the country – but China plays a very important role for Apple.
China is Apple’s third largest market, and “apple flaw” accounts for 12% of the Chinese smartphone market share in the fourth quarter of 2018, according to Counterpoint Research.
If a campaign to boycott Apple products in China, Apple would have a hard time pushing up iPhone sales to catch up with Samsung’s global market share.
Opportunity for Galaxy Fold.
Samsung can also benefit from Huawei’s challenges in a different way, in the foldable phone segment. The Galaxy Fold had a bad start after many reviewers (reviewers) said the device’s screen was broken after only a few days of use. For this reason, Samsung had to postpone indefinitely on Fold’s shelf.
Huawei’s punishment by the US can help bring a second chance for Fold.
In February, the Mate X with Huawei’s folding screen came out just days after the Galaxy Fold. Huawei has not yet announced when it will officially retail this handset, so analysts cannot determine whether the Mate X can be equipped with the Android operating system.
The US government has imposed sanctions on Huawei for 90 days to maintain and support existing products, and this “extortion” lasts until August 19. However, no one knows if the Mate X will be released before August 19, although an article from the Gizmo China site says the phone may start retailing in June.
Losing Android use will be a heavy blow for Huawei, and is particularly serious for a high-end product like Mate X, which is priced at around $ 2,600 at launch. For consumers outside of mainland China, the Mate X is not equipped with Google services, which will seriously degrade the value of the “super phone”.
Of course, not only Huawei and Samsung, but some other companies like Xiaomi and Motorola are also developing each company’s folding screen phones, but none of them have the foldable screen products given. is able to compete with Galaxy Fold and Mate X. Thus, Samsung will hold the opportunity to dominate the screen phone market folded in a considerable time if the company officially sells Fold in the near future.
It is still too early to accurately guess what will happen to Huawei from US sanctions against this company. Huawei has stated that the company has already prepared its own operating system to replace Android, and the Chief Justice of Africa also said that Huawei’s revenue growth will only slightly decrease.
But according to Business Insider, even if Mr. Right is right, Huawei’s slight deceleration has also been good news for Samsung’s global smartphone market leader.