Huawei's Vacancy Filled by Samsung... Smartphone Sales to Surpass 300 Million Units Next Year

[Asia Economy Reporter Joselgina] As the US's additional sanctions targeting China's Huawei took effect on the 15th (local time), it is expected that Samsung Electronics, a 'competitor,' will quickly fill the void left by Huawei in the global smartphone market. Samsung Electronics' smartphone shipments are projected to exceed 300 million units again next year. In contrast, Huawei's shipments are expected to plummet by 75%, with the worst-case scenario even mentioning its exit from the smartphone market.

According to analyses by domestic and international market research firms, Samsung Electronics' smartphone shipments in 2021 are estimated to increase by about 14% compared to the previous year, surpassing 300 million units. This marks a recovery of the annual 300 million unit level that had collapsed since 2018, after three years. The expansion of premium models such as the flagship Galaxy S and Note series is also expected to raise the average selling price.

This is because the US sanctions against Huawei have intensified, and competitors such as Samsung Electronics, Apple, and Xiaomi are expected to gain indirect benefits. According to market research firm Counterpoint Research, in the second quarter of this year, Huawei held a 20.2% share of the global smartphone market, surpassing Samsung Electronics' 20.0% to take first place. However, on an annual basis for this year, Samsung Electronics is expected to reclaim the top spot.

Nikkei Asian Review analyzed, "Although Huawei overtook Samsung Electronics in the second quarter to become the world's largest smartphone manufacturer, it is facing difficulties," adding, "The chip supply shortage caused by US sanctions will directly impact smartphone sales."

Another market research firm, Strategy Analytics (SA), forecasts that the chipsets Huawei stockpiled in preparation for the US-China trade war will be depleted by next year, projecting Huawei's smartphone shipments to sharply decline from 190 million units this year to 59 million units next year. In contrast, Samsung Electronics' shipments are expected to rise from 265.5 million units this year to nearly 300 million units next year. Stephan Teral, an analyst at LightCounting Market Research, evaluated Samsung Electronics as "the biggest beneficiary."

Huawei itself has acknowledged that the current sanctions could adversely affect its future smartphone sales. It is highly likely that Huawei will adopt a strategy to secure low-cost Chinese-made substitute components to circumvent US sanctions. However, the industry anticipates that this will inevitably weaken the product competitiveness that Huawei has built up so far. For Samsung Electronics, this represents a major opportunity to expand both market share and the technological gap.

This content was produced with the assistance of AI translation services.