Huawei analysts predict setbacks position it for long-term leadership

Analysts predict that Huawei’s setbacks positioned the company for long-term market leadership

Huawei has found its way back into the game with record-breaking sales from its HiSilicon company, and analysts say this winning streak is in for the long run.

A report explains how Huawei bested Qualcomm’s standing in the rivalry for the biggest System-on-a-chip (SOC) system in China. This is in reference to recent SOC results, which showed that Huawei’s HiSilicon company has managed to occupy significant portions of its home market, beating its competitors whose numbers fell behind.
Analysts detail that although the company went through an unsuccessful feat in the preceding months, such setbacks have appeared to have paved the way for the company to regain its lost momentum, which will potentially benefit Huawei in the long run.

A look back on Huawei’s most difficult setbacks
2019 has tested Huawei’s readiness for the volatile road ahead as it was faced with several bottlenecks in its quest for market leadership. Results taken from the SOC statistics have shown that the game gained only 24.3% out of the total shares in the last quarter of 2019 mainly because of the U.S. Trade Ban that was imposed by the Trump administration In the third quarter of 2019 preventing U.S. companies from engaging in any form of trading with Huawei after the technology giant was alleged of Chinese espionage and intellectual property theft.
This has resulted in the brand losing a considerable portion of one of its target consumer groups – the U.S. Huawei executives detail that if they were not able to release handset models before the said ban, it would not have been able to keep its market position.
Reportedly, Huawei smartphones such as the P30 flagship series, P Smart 2019, Y9 Prime 2019, Nova 5T, and its Honor devices captured consumers’ delight and contributed significantly to its numbers in the past year despite the fact that its devices are now unable to support Google Play Services.
The coronavirus pandemic has also shaken up the company’s position in the market as well as the brewing competition on 5G connectivity.

A big comeback

Letters from analysts have predicted that Huawei will ace the year 2020 due to its long-term approach in addressing the previously mentioned setbacks. For instance, Huawei’s supply chain has achieved independence that could not have been arrived at if not for the U.S. trade restrictions. This is proven after they were able to release its Mate 30 smartphone without any components from its U.S. suppliers months after the ban took effect.
Some attribute HiSilicon’s quick expansion due to the influencing successes of Huawei and Honor and contradicts claims that manufacturers have started to prefer HiSilicon platforms instead of Qualcomm. This means that the telecommunications giant will have to persevere and continue to show unrivaled quality in its products if it were to emerge as the supreme market leader in the said arena.

Feature image used courtesy of UglyJack123/YouTube Screenshot.

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