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Home / Apple / Huawei's US losses can lead to gains in China, at Apple's expense

Huawei's US losses can lead to gains in China, at Apple's expense



It is too early to quantify how much the US ban on Huawei will damage the Chinese telecommunications giant internationally, but if media reports from China can be taken seriously, the company may be able to settle its losses in the home – damaging Apple's shaky iPhone business there in the process . A report today South China Morning Post suggests that nationalism and user embarrassment are spreading some iPhone users to switch to Huawei phones, emotional responses that may disturb years, and increased Chinese loyalty to Apple's products. 19659003] Several Chinese publications have recently reported on the phenomenon, which began with scattered social media, urging citizens to support Huawei at Apple's expense in response to trade disputes between the United States and China. As SCMP explains, a nationalist rhetoric of "switching to Huawei" has been gaining traction as trade tensions are escalating, "with Huawei boosting Weibo posts, tens of thousands of likes, along with several recent Apple recent publications to Huawei switchers. ] But "breaking" the emotions is not necessarily as polarized as you can imagine, rather than calling to boycott Apple or throwing old iPhones in the trash, some long-term users only use Huawei purchases as patriotic acts. iPhones as backups to their Huawei products ̵

1; especially with Huawei chair Ren Zhengfei.

Instead of acting on nationalist favors, Ren claimed a milder tone in a television appearance yesterday, and especially priced Apple's value outside China. The iPhone has a good ecosystem, "he said," and when my family is abroad, I still buy them iPhones, so one cannot limit the belief that love t Huawei should mean dear Huawei phones. "Ren also expressed gratitude to US companies and consultants who have helped Huawei's development.

Apple's dependence on China is well documented. While having less than 10% market share in the country, Apple produces about 20% of its revenue and profits in China, the world's largest smartphone market. The large fraction of sales explains why Apple has responded to government requests to compromise user data and block specific apps so that it can continue to sell its products to Chinese consumers. Nevertheless, the development market is still price-sensitive, a fact that damaged Apple's 2018 holiday sales in the country and forced to cut prices to revive demand.

Huawei's dependence on American and Allied businesses becomes clearer during the day. Businesses like Google and Arm have gradually ceased to cooperate with Huawei, deprived of software and hardware support it prides itself on developing and selling consumer devices. As a result, operators in and outside the United States are now slowing down plans to carry their 5G products. Huawei claims to be ready for the transition, but a similar ban on ZTE last year quickly brought the smaller Chinese telecommunications company to the edge of a closure. It is unclear how long Huawei will be able to endure.

However, two benefits can allow Huawei to continue. The company produces its own Balong series 5G modems, as well as Kirin mobile processors, so it does not have to source these key parts from other companies. In addition, the Chinese market sells between 400 million and 500 million smartphones annually, and Huawei led the market in 2018 with a share of 26.4% and grew in the first quarter of 2019. China is experiencing an increase in new unit Demand due to recently announced 5G network launches. After limited local deployments, all three major Chinese carriers are expected to launch "national" 5G services over 40 cities in October.

Huawei and a large selection of smaller domestic Chinese smartphone manufacturers will launch 5G units this year to meet that demand so they can capitalize on early-voltage high-speed technology. But Apple won't, as it is allegedly scheduled to wait until next year to debut its first 5G phone.

While refusing to carry Huawei 5G units will reduce smartphone options for non-China operators, it can enable the company to improve efforts to build market share in the home country. Meanwhile, Apple needs to find some way to justify the latest iPhone's high prices to consumers inside and outside China, despite the absence of the key premium feature that customers expect this year. As bad as things look for Huawei in the US right now, her fighting here can lead to a change of wealth elsewhere, and it will be exciting to see it all over the next year or so.


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