Global Smartphone Industry Faces Major Shift Amid 'Huawei Sanctions'

Huawei's Market Share Drops to 15% in August
Samsung Electronics Benefits from Demand Recovery in India and South America

[Asia Economy Reporter Minji Lee] As Huawei of China faces disruptions in smartphone production due to US government sanctions, significant shifts are occurring in the global smartphone industry. While global smartphone sales are on the rise, other Chinese companies such as Samsung Electronics, Xiaomi, and Oppo are benefiting from this situation.

According to Counterpoint on the 3rd, global smartphone sales in August reached 118.03 million units, marking a 1% increase compared to the same period last year, returning to year-over-year growth for the first time since the outbreak of COVID-19. Ji-san Kim, a researcher at Kiwoom Securities, stated, “Strong demand recovery was observed in India, South America, and Western Europe, and Huawei sanctions played the biggest role as a variable. Due to push sales before the Huawei sanctions, global shipments exceeded sales volume.”

Looking at sales by region, the US recorded 10.9 million units, a 3% decrease compared to the same period last year, reflecting seasonal off-season and delays in the release of the new iPhone. However, the Samsung Galaxy Note20 series released in August performed well, significantly increasing the proportion of sales of high-end models priced above $800. LG Electronics maintained a 12% market share, showing good performance in the budget segment.

China recorded 29.73 million units, down 8% compared to the same period last year. Sales have yet to recover to last year’s levels, and Huawei’s difficulties in launching new models caused a decline for the first time since February. Xiaomi and Vivo rebounded by filling the gap left by Huawei.

India showed strong recovery with 15.36 million units, a 13% increase compared to the same period last year. Samsung grew 36% compared to a year ago, driven by strong sales of the Galaxy M series. Researcher Ji-san Kim said, “Samsung is strengthening its approach to the Indian online market and is attempting to further expand market share through the launch of the F series, an online-exclusive platform.”

The biggest issue in the smartphone industry is the market structure change due to Huawei sanctions. Huawei’s market share fell from 16.9% in July to 15.5% in August. Considering the full impact of sanctions since the 15th of last month, further declines are highly likely. Assuming sanctions continue, smartphone shipments are expected to fall short of 30 million units.

Samsung Electronics led by the Galaxy A and M series showed notable market share increases in India and South America in August. Researcher Ji-san Kim analyzed, “Samsung’s shipments next year are expected to increase 17% to 314 million units, providing important momentum to the parts industry. Chinese companies Vivo, Oppo, and Xiaomi are expected to grow by 45%, 44%, and 39% respectively next year, replacing Huawei.”

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