According to renowned analyst, Ming-Chi Kuo from TF International Securities, Huawei’s may capture as much as 45% to 50% market share in China in 2020. This will translates to a 5% to 15% growth, from the current market share which stood at approximately 35% to 40% in China.
The tremendous growth in the home market next year will help to offset the the decline in international smartphone shipment next year, as a result of the US trade ban. Unlike the international market which remain versatile due to Huawei’s restricted access to Google Play apps and services, the local market remain very much unaffected.
Instead, Huawei is able to ride on the patriotic wave in China as more Chinese consumers rushed to purchase more devices from Huawei in show of their support for the local smartphone maker. This was also one of the key factor which contributed to the 7.8 million net increase in China’s smartphone shipment in Q2 2019 (relative to Q2 2018) as seen from the recent IDC report.
In order to negate the impact of declining global sales, Kuo mentioned that Huawei is likely to deploys a two-prong approach. The first strategy is to strengthen their marketing of older smartphones in the overseas market to revitalize their sales figure. This is due to the fact that older Huawei smartphones will still be loaded with Google Play apps and services as they were not affected by the trade ban.
The second strategy will be of course, to capture a greater market share in the Chinese market which will help cushion against it’s flagging shipments in most of its key overseas market in Europe, Middle East and South East Asia.