Huawei IS GOING DOWN?

Huawei will significantly fewer phones than what they anticipated just a couple of months ago, signifying the US ban is finally showing its effects on the business of Huawei.

So for a few months now, Huawei has defied the gravity of the US ban.
Despite being banned from using Google's services Huawei’s overall smartphone sale continues
to expand on a year-on-year basis due to its strong domestic demand spurred by “patriotic
buying”.
The support of Chinese people helped Huawei to cushion the impact of plummeting smartphone
sale in the global market.
But it looks like the patriotic support of Chinese people is going down, Huawei is now
expected to sell 40 million fewer smartphones than what they hoped a couple of months ago.
You see in October this year, Huawei surpassed 200 million smartphone sales 64 days faster
than what they did in 2018.

And at that time the founder and CEO of Huawei said that they will sell 270 million smartphones
by the end of 2019.
Most of us thought that was totally achievable considering the growth they were experiencing.
But the latest reports are saying they're not even close to that number.
Huawei's CEO of consumer electronics Richard Yu has announced during an internal meeting
that the company will ship approximately 230 million smartphones globally this year which
is 40 million less than what they anticipated just a couple of months ago.
You know, the 4th Quarter is really important to all of the smartphone manufacturers.
It's the Holiday quarter and people like to spend money on this timeframe.
Every company sees an increase in sales in this quarter but Huawei, on the other hand,
is seeing a huge decline.
They expected they would sell 7 million devices per week but instead, they are selling 3 million
devices per week.

So what exactly happened in the 4th quarter?
Why they're seeing a decline all of a sudden?
You see the reason the US blacklist had little to no impact on the sales of Huawei was that
they had relatively new lineup of phones which all had Google services.
But now they're starting to age and they no longer appeal to consumers.
I've talked about this in the past, the approach that Huawei is taking where they are selling
new phones with Google services by just rebranding the old phone will only work for a short amount
of time.
It won't work long term and that's exactly what's happening.
New Huawei phones are not appealing to the consumers because either it doesn't have Google
services or it has google services but the phones are old and people are realizing that
it's just rebranded phone with old internals.
Another big reason is China.

Almost all of their sales came from China and people bought Huawei phones to show their
support against the US ban.
But you see human brain is designed to forget information.
Huawei cannot expect that Chinese people will keep buying their phones out of pity forever.
As the dust is settling so do the patriotic support of Chinese people, and they're buying
phones of different companies.
You see this is going to get worse.
The actual effect of the ban will be seen next year when almost all of Huawei's new
phones won't have Google apps and western people wouldn't care about these phones.
And with the support of Chinese people going down, I wouldn't be surprised if Huawei goes
down as well unless the Chinese government forces its citizens to buy Huawei phones.
That being said, do let me know what do you think.

With the support going down, do you think they could still beat Samsung for the number
one spot?
let me know in the comments