Thursday, July 20, 2023

Huawei beat back US restrictions positively.The market share of mobile phones in China as of the most recent quarter of 2023 is led by Huawei, which recorded 25.70%. It is followed by Apple with 22.83%. Next to them are Xiaomi, Vivo, and OPPO, with market shares at 8.08%, 7.53%, and 5.42% #Huawei #Apple #HuaweiCars




"Huawei surpasses Samsung and Apple in the global smartphone market (Fox Business 30/7/2020)"; "Samsung And Apple Beaten By Huawei In Huge New Smartphone Surprise (Forbes 15/6/2020)". These stories on the face of it appear very highly likely to attract the US government sanctions against Huawei rather than the political accusation. 

After such headlines, Huawei has been hit by a series of export controls by Washington which says it is a security risk, which the company denies. The sanctions have blocked Huawei from buying key components as well as from using Google's Android operating system. It also affected Huawei's partnerships with global automakers, who have given up using Huawei's vehicle connectivity technologies in the past two years.

Tension with the U.S. saw Huawei CFO Meng Wanzhou detained for three years in Canada over alleged efforts to cover up attempts by Huawei-linked companies to sell pieces of equipment to Iran in breach of US sanctions and on 30 Sep 2021 she enters an agreement with US Justice Department, allowed to return to China.

The US government's sanctions squeezed Huawei's nearly 20% share of the world's mobile phone handset market in 2020.

At the 19th Shanghai International Automobile Industry Exhibition (2021), Huawei announced that China’s automotive company SERES has launched an extended range electric vehicle-the new SERES SF5, and it will be available in Huawei flagship stores across China.

Huawei Technologies (HWT.UL) is partnering with more legacy automakers to produce Aito-branded electric cars,  in a move to expand its presence in the auto industry, will team up with Chery Automobile, BAIC Motor, and Anhui Jianghuai Automobile Group, jointly developing and manufacturing Aito-branded vehicles.

Huawei's Chairman Eric Xu reiterated in a recent press conference that the company doesn't make cars on its own but only helps other automakers make better vehicles. Read more.

In spite of all odds, Huawei has successfully managed to growing fast both in China and in the world market, from smartphones to automobiles to compete and beat back US restrictions positively, for a number of reasons. These include:

  • Strong government support: The Chinese government has been a strong supporter of Huawei, providing financial assistance and access to markets. This has helped Huawei to grow its business and become a major player in the global telecommunications industry.
  • Heavy investment in R&D: Huawei has invested heavily in research and development, which has helped the company to develop innovative products and services. This has given Huawei a competitive edge over its rivals.
  • Aggressive marketing: Huawei has been very aggressive in its marketing, both in China and abroad. The company has used a variety of channels to reach consumers, including online advertising, social media, and TV commercials.
  • Good product quality: Huawei products are generally considered to be of good quality. This has helped the company to build a loyal customer base.
  • Competitive pricing: Huawei products are often priced competitively, which has made them more affordable for consumers.

In addition to these factors, Huawei's recent entry into the automotive industry is also a sign of the company's growing ambition. Huawei is hoping to use its expertise in telecommunications and networking to develop new technologies for the automotive industry. This could help Huawei to become a major player in the automotive industry in the future.

Here are some additional details about each of these factors:

  • Strong government support: The Chinese government has been a strong supporter of Huawei since the company's founding in 1987 but this is not unique only to China because every government on this planet supports their companies to get more business share in the International market. The government has provided Huawei with financial assistance, access to markets, and preferential treatment in government procurement. This has helped Huawei to grow its business and become a major player in the global telecommunications industry.
  • Heavy investment in R&D: Huawei has invested heavily in research and development, which has helped the company to develop innovative products and services. In 2021, Huawei spent $22.4 billion on R&D, which was more than any other telecommunications company in the world. This investment has helped Huawei to develop new technologies, such as 5G, that have given the company a competitive edge.
  • Aggressive marketing: Huawei has been very aggressive in its marketing, both in China and abroad. The company has used a variety of channels to reach consumers, including online advertising, social media, and TV commercials. Huawei's marketing campaigns have been very effective in raising awareness of the company's products and services.
  • Good product quality: Huawei products are generally considered to be of good quality. This has helped the company to build a loyal customer base. Huawei's products are often praised for their performance, features, and design.
  • Competitive pricing: Huawei products are often priced competitively, which has made them more affordable for consumers. Huawei's pricing strategy has helped the company to gain market share in both China and abroad.
Overall, Huawei's growth in China has been driven by a number of factors, including strong government support, heavy investment in R&D, aggressive marketing, good product quality, and competitive pricing. The company's recent entry into the automotive industry is a sign of Huawei's growing ambition and its desire to become a major player in the global technology market.

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