SHANGHAI (Reuters) – China’s Huawei Applied sciences Co Ltd, as soon as the world’s largest smartphone maker, noticed its cellphone shipments to retailers and different sellers inside China plunge by half within the first quarter, as U.S. sanctions on its provide chain crimped growth at the same time as the general smartphone market rebounded.
The corporate shipped a complete of 14.9 million handsets inside China within the quarter ending in March, down from 30.1 million in the identical interval final 12 months, in line with analysis agency Canalys.
Its market share additionally dropped to 16% from 41% a 12 months in the past, turning into the third largest after fellow Chinese language manufacturers Vivo and Oppo.
Vivo and Oppo noticed their shipments develop 79% and 65% respectively, as they gained market share from Huawei. Vivo shipped 21.6 million items within the first quarter, whereas Oppo shipped 20.6 million.
Huawei was placed on a blacklist by former U.S. President Donald Trump in 2019 that barred the corporate from importing important know-how of U.S. origin, affecting its potential to design its personal chips and supply parts from outdoors distributors.
The ban put Huawei’s as soon as profitable handset enterprise beneath immense strain, prompting the sale of its Honor funds smartphone unit to a gaggle of brokers and sellers in November.
Huawei mentioned on Wednesday its first-quarter income fell 16.5%, harm by a dip in smartphone gross sales.
China’s general marketplace for smartphones has rebounded again to pre-pandemic ranges, with general shipments rising 24% from the primary quarter a 12 months in the past, when the pandemic was peaking within the nation.
Xiaomi Corp additionally grew shipments 75% to 13.5 million items, whereas Apple Inc elevated by 49% to 12 million items because of robust demand for the iPhone 12 collection, the corporate’s first 5G handset.
(Reporting by Josh Horwitz; Modifying by Simon Cameron-Moore)
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