Huawei trade ban will slash smartphone sales by 20 per cent, it predicts

The Huawei trade ban will cost the Chinese company around 20 per cent in smartphone sales this year, it is predicted.

And that’s without taking into account any impact on retail the coronavirus outbreak could have.

Internal projections made in January were leaked by sources to The Information. It means that Huawei itself admits that the continued sanctions by the US government will severely hit its market share – especially in Europe and other western countries.

By not offering Google services on its handsets, the company is clearly losing consumer interest in devices that had previously elevated Huawei into second position in global smartphone sales.

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Its 2019 performance seemed to have been largely unaffected by the ban, but that’s because older models were still on sale with Google services installed, claims The Information.

Any further sales impact caused by the coronavirus outbreak will become more clear in the coming months. It is likely to also sting, though: “This is a double whammy,” admitted a Huawei manager who declined to be named.

What the report doesn’t say is how Huawei’s future plans of building its own app store and services ecosystem might improve performance down the line.

Some might even prefer devices that no longer rely so heavily on US tech giants.

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