Due to the various sanctions imposed on Huawei, the company saw a significant decline in its primary business of smartphones.
Xiaomi Executive Reveals Brands Taking Advantage of Huawei’s Decline
According to Lu Weibing, President of the Xiaomi Group, the company lost around 80 million of its customers due to sanctions. Huawei was cut off from its primary chip supplier, TSMC, and also lost access to US-based technology suppliers. This led to the downfall of the company’s smartphone operations.
Xiaomi Acquired 50 Million of Huawei’s Lost Customers
Huawei was once the 2nd largest smartphone OEM in the world but saw a quick decline following the sanctions. Out of the 80 million users that Huawei lost, 50 million of them went to Xiaomi.
On the other hand, 20 million of Huawei’s customers went to Apple, and the remaining 10 million were acquired by Honor.
The absence of Huawei in the Chinese market left a massive gap that other brands rushed to fill in. Its market share was quickly taken up by rival companies, with most of them seeing notable growth in recent years.
Although, the smartphone market overall is still in decline due to various issues in the supply chain and economic factors.
Conclusion
The sanctions imposed on Huawei led to a significant decline in the company’s smartphone business. According to Lu Weibing, President of Xiaomi Group, the company lost around 80 million of its customers due to these sanctions.
Out of these lost customers, 50 million went to Xiaomi, 20 million went to Apple, and the remaining 10 million were acquired by Honor. The absence of Huawei in the Chinese market created a gap that other brands quickly filled, leading to a shift in market share.
Despite this, the overall smartphone market is still in decline due to various supply chain and economic factors.