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Entry 2020-09-15 05:44 | Review 2020-09-15 05:44
New sanctions on Huawei in the US are expected to have an impact on the smartphone market. Huawei, which reached number one global market share in the second quarter, is expected to benefit from other companies such as Samsung Electronics and Xiaomi as it faces restrictions on purchasing parts and using software.
According to the industry on the 15th, from this day, to supply products produced with American software or equipment to Huawei and its subsidiaries, special permission must be obtained from the United States Department of Commerce.
Under the sanctions, semiconductor companies using any of the US company’s technologies can supply them to Huawei only after obtaining prior approval from the US Department of Commerce.
Consequently, in the future, Huawei has no choice but to do business on the premise that it cannot additionally acquire the semiconductor parts necessary to manufacture various products, such as mobile communications base stations, servers, smartphones, computers, and televisions.
In particular, in the case of smartphones, one of Huawei’s flagship businesses, it is expected to face difficulties in acquiring components such as displays that contain not only memory semiconductors, but also panel control chips (integrated circuits), a type of semiconductor. Samsung Display has applied for a special permission to export to Huawei from the US Department of Commerce, and LG Display is also reviewing the app, but the industry notes that the US side will not immediately grant the permission.
The same goes for software. Huawei stopped backing Google tech support last year due to US sanctions and released a smartphone without Google’s mobile services (GMS), such as the Google Play Store, Gmail, YouTube, and the Chrome browser.
In response, Huawei is showing its willingness to escape the Android ecosystem by applying ‘Hong Meng’, an operating system (OS) developed by itself, starting next year, but is it possible to replace Hong Meng Android in foreign markets that take Google apps like YouTube for granted? I am skeptical about it.
Indeed, market share in foreign markets such as Europe is reported to continue to decline as new smartphones such as ‘Mate 30’, which were launched after US sanctions in May last year, were not supported. with Google mobile service.
Kim Ji-san, an analyst at Kiwoom Securities, said: “Huawei should try to sustain itself without American technology, but a major blow to the smartphone business will be inevitable.” It’s a battle for the ecosystem focused on app developers, and there are no success stories other than Android and iOS. “
“It will be difficult to support enough Hongmeng OS-based applications, and Huawei will become a Chinese national company and also lose its dominant position in the domestic market.”
As Huawei is expected to withdraw from the smartphone market, other manufacturers are expected to fill the gap in Huawei’s demand, resulting in a large fluctuation in global smartphone market share.
Huawei was rapidly increasing its market share, mainly in domestic demand, Europe and Southeast Asia. In the second quarter of this year, it recorded 20.2% of the market share in terms of shipments, surpassing Samsung Electronics. However, market research firm Strategy Analytics (SA) noted that Huawei’s smartphone market share will drop to 4.3% next year.
Huawei’s vacancy is expected to be filled by other Chinese brands like Xiaomi, Oppo and Vivo in the Chinese market, and Samsung Electronics is expected to benefit from foreign regions like Europe and Southeast Asia.
In particular, in the second half of the year, Samsung Electronics is rapidly worrying the smartphone market, which is showing a recovery trend, by successively introducing premium models such as Galaxy Note 20 and Galaxy Z Fold 2.
In the market, there is also a forecast that Samsung Electronics’ smartphone sales in the third quarter of this year will reach the highest level since the third quarter of 2017. Park Kang-ho, researcher at Daishin Securities, said: ” Samsung Electronics’ smartphone sales in the third quarter are expected to increase 49.1% compared to the previous quarter to 80.59 million units. ” “It is judged that we have seen the benefit reflected due to friction between people.”
An industry insider said: “As Huawei continues to strengthen sanctions in the United States, the competitiveness of smartphones in the medium and long term and the production of Huawei’s products will be greatly reduced.” However, it will be insufficient to meet demand in Europe and the Middle East, except China. “
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