Huawei expects significant drop in smartphone sales this year

Huawei Mate 30 Pro Cameras
Huawei Mate 30 Pro Cameras (Image credit: Android Central)

What you need to know

  • The U.S. ban on the Chinese giant is finally starting to hurt Huawei.
  • Despite stellar performance in 2019, the company expects a massive 20% drop in smartphone sales this year.
  • The underlying cause? Lower demand in foreign markets due to the lack of Google services on its newest phones.

Despite holding strong for nearly a year since it was first added to the U.S. Entity List, Huawei's fortunes may finally be starting to turn as the Trump administration's maximum pressure campaign starts to yield tangible results.

Even though most of its new phones lacked Google services last year, Huawei was still able to report a 20% year-on-year increase in smartphone sales in 2019, owing to strong domestic demand, as well as its reliance on phones that had already been certified for Google Mobile Services before the U.S. ban went into effect.

2020, however, is going to be a different beast altogether, with The Information (opens in new tab) reporting that the Chinese giant expects sales to drop from 240 million last year back to 2018 levels of around 190-200 million units. Those numbers, shared with the publication via unnamed sources, come from Huawei's internal projections, shared with a select few managers in the company's consumer electronics division.

The driving force behind the flagging sales is the waning appeal of Huawei's smartphones in foreign and European markets due to the lack of Google Mobile Services. And while both Google and Huawei are taking measures to deal with this new reality, it's unclear if any of them will save Huawei from the dire predicament it currently faces.

Muhammad Jarir Kanji
  • Google as weapon
  • Huawei has been GOOGLEIZED, Yikes! DOA in the USA?
  • Huawei's quest to overtake Samsung ain't looking very swell? Life without Google has hit them very hard, more than they ever thought? We don't need the USA or Google, they spoke too soon?
  • That's the impression I got. A lot of big talk, then backpedaling. And now that there's additional hard evidence against them, the ban is not likely to be lifted anytime soon.
  • What's this additional hard evidence? For that matter, what was the original hard evidence?
  • Nothing. Just Trump's word (which has no value).
  • Haaa. Fuzzylumpkin took the words right out my mouth. There's no additional hard evidence. There's no evidence full stop. Just accusations and regurgitated stuff that they've already been held to and dealt with many years ago. Huawei have even asked the US... begged almost to not only present their evidence but to publish it publicly for all to see but the silence is deafening. Phone sales dropping right now will be disappointing for them no doubt but hardly come as a surprise as they try and carve out a complete new OS and ecosystem from scratch. I won't buy any of their devices for the foreseeable future but I wouldn't write them off for a split second. If any company can pull this off then it's Huawei when the likes of Microsoft etc fell on their butts
  • I think one advantage they have over others like Microsoft is they are still using Android so apps can be ported over easily to the app store they have so if developers jump on then they can get the support and for people like myself who dose not use much of Google services it could work for me but that said the one I use Google pay this will need addressing before I can make the switch. But I do agree it will be hard for them to get a foot on the door short term
  • Thought this would have been sorted by now, next phone will be a downgrade as nothing comes even close to Huawei
  • I honestly don't care whether Huawei fails or not, because they are subsidized by the Chinese government and is essentially an arm of the gov't. They are not operating on equal terms with their global competitors.
  • Really? Obama vetoed a ruling favouring Samsung against Apple (to prevent Apple paying for infringement). All American companies are obligated by law to comply with Government data auditing i.e espionage. The U.S government bails out U.S businesses/business sectors all the time i.e the banking sector, the farming sector. The Government also vetoes aquisiotions of American companies. Smh at brainwashed commenters.
  • Apple don't even pay tax for heavens sake. Along with many other US companies like Amazon etc. Based in other countries where a trade deal is held against their heads for tax free benefits.
  • Dov1978 knows all the innerworking of every USA companies.
  • Don't have to. It's common and public knowledge