According to a source, Chinese mobile phone competitors from Huawei Technologies including Xiaomi, Oppo and Vivo are taking aggressive measures to seize the US market from Huawei following the increase in US sanctions that stifled the company's chain.
Last week, Huawei revealed that they had sold the Honor brand smartphone unit at an undisclosed price as an initiative to protect the last supply chain from US action.
In addition, Chinese competitor Huawei is also alleged to be able to detect the crisis that plagued the middle to upper class mobile phone market. In August, a Huawei executive said that the company would not be able to produce its flagship processor that powers its high-end smartphones.
Based on statements made by Derek Wang, executive responsible for the production of mobile phone maker Realme, which shares the supply chain with Oppo, Huawei's three rival companies, Xiaomi, Oppo and Vivo, expect that sanctions against Huawei will hurt the company in the international market. . Therefore, they will take the opportunity to grab Huawei's position.
For all you know, Realme was established in 2018. In addition, the company will also double its smartphone shipments to 50 million this year and will develop bases with low price offers in Southeast Asia and India as well as targeting Europe and China as their locations in forward by pushing the market, regardless of Huawei’s situation.
Meanwhile, it is common knowledge that the U.S. Department of Commerce continues to restrict Huawei's access to US technology that is essential to its mobile phone business, on the grounds that Huawei poses a security threat, an allegation that Huawei has denied.
However, Huawei allegedly surpassed Samsung as the world's largest mobile phone maker in the first half of this year, before its delivery recorded a 23% drop to 51.7 million units in the third quarter. Next, Huawei still dominated 41.2% of the market in the third quarter, followed by Vivo with 18.4%, Oppo with 16.8% and Xiaomi with 12.6%.
Industry observers have confirmed an increase in orders from vendors. Xiaomi, the most optimistic, placed enough orders for 100 million phones between the fourth quarter of 2020 and the first quarter of 2021, recorded 50% while Oppo and Vivo production also increased by about 8% each since August, with orders up to 90 million and 70 million mobile phones respectively.
On the other hand, Huawei orders dropped 55% to 42 million mobile phones at the time.
However, the four companies declined to comment on the issue.
Not only that! Xiaomi is also rumored to be trying to seize Huawei's market in Southeast Asia and Europe in hopes of securing an exclusive offer. However, analysts believe that the sale of Huawei Honor may partially address the issue of competition in the market, provided Honor can continue to use US technology.
