Huawei has been battling with the U.S. ban for a few years now. Earlier than the U.S. finally authorised a sequence of bans on Huawei, the Chinese language producer was set to change into the most important smartphone model globally. Nevertheless, for the reason that ban, Huawei’s smartphone enterprise has been plummeting. The corporate accepts its destiny however has constantly mentioned that its smartphone enterprise won’t die. In line with Huawei’s executives, the corporate is simply “making an attempt to outlive” within the smartphone market. In fact, Huawei shouldn’t be competing, it’s simply doing sufficient to remain alive within the smartphone market.

After the lack of Google Cellular Providers, Huawei needed to focus its smartphone enterprise in China. The latest market analysis report from the Chinese language smartphone market exhibits that the corporate is doing properly, no less than within the 5G section.

Huawei’s Q3 2021 market share

In line with Counterpoint Analysis, the Chinese language smartphone market share within the third quarter has some important adjustments. Smartphone manufacturers like Vivo and Oppo declare over 20% of the market share, forming the highest twin powerhouses.

Huawei ranks sixth within the Chinese language smartphone market within the third quarter of 2021. This can be a big 77% drop yr on yr and its market share is barely 8%. In reality, for different analysis companies, Huawei has no place and falls underneath the “others” class. On this regard, many individuals might imagine that Huawei has principally misplaced its cell phone enterprise. Nevertheless, what’s much less recognized is that Huawei’s place within the 5G smartphone market remains to be troublesome to shake.

In line with latest gross sales information from China, within the third quarter of 2021, the proportion of 5G smartphone activation gadgets within the Chinese language market continues to extend, reaching 27.4%. When it comes to model market share, Huawei’s market share hit 30.7%. Though it is a decline from the second quarter of this yr, Huawei nonetheless ranks first. This merely implies that 30% of all 5G smartphones in use are Huawei’s gadgets. Thus, after virtually two years (16 months) of the chip provide reduce off, the corporate remains to be promoting. How is that this attainable?

Allow us to take a look at the highest three causes for Huawei’s first rate gross sales within the 5G smartphone market in China

1. Huawei has fairly first rate and arduous to reject smartphones

Though the Chinese language manufacturing large is going through some points out there, it has some fairly first rate gadgets. The dearth of GMS shouldn’t be a problem in China, the chip ban is the one difficulty. Nonetheless, the corporate has smartphones just like the Huawei P40 sequence, Mate30 sequence, and Mate40 Professional. These smartphones stay within the prime ten best-selling checklist in China. For each 100 5G cellphones, 13 are Huawei’s two sequence of merchandise.

Along with these smartphones, Huawei nova 7 ranks third in China with a market share of three.2%. The one two smartphones that promote greater than the nova 7 are iPhone 12 and iPhone 12 Professional Max.

Chinese language smartphone customers love the nova sequence since its official launch. The most recent nova 7 hit the market in 2020 and it’s the hottest mannequin of the sequence thus far. In line with market studies, within the third quarter of 2020, Huawei’s nova7 sequence has the most important single product gross sales of smartphones within the China.

2. Huawei’s service is nice

Outdated Huawei customers know that Huawei has a 99 yuan ($16) assure for battery substitute service all year long. As well as, it additionally affords intermittent gratitude suggestions, 20% off guarantee restore spare components. The battery renewal begins at 79 yuan ($12) and there may be additionally free disinfection, cleansing, testing, and extra.

Moreover, Huawei has additionally launched a sequence of “previous telephone refurbishment” providers and “reminiscence improve” plans. Along with changing the battery and display screen, it additionally helps changing the again shell and upgrading the space for storing. With all these providers out there in China, an previous Huawei smartphone might be used for an additional Three years.

3. Then there may be HarmonyOS

Many individuals in China need to expertise HarmonyOS. Android and iOS are overseas working techniques they usually need to really feel what their very own system can supply. Statistics present {that a} good variety of new Huawei customers in China get the gadget to expertise HarmonyOS. In line with the corporate, it can improve this technique to 100 fashions this yr. This improve contains smartphones which might be as previous as 5 to 6 years. Very previous gadgets just like the Huawei Mate 9 sequence have already got the HarmonyOS replace in China.

Underneath the “name” of HarmonyOS, a lot of previous fashions have been reborn. Information in October exhibits that 150 million customers have upgraded to HarmonyOS. As a way to expertise, many customers both bought new telephones or re-activated their previous gadgets.

As well as, Huawei formally licensed the upkeep of second-hand cellphones. Each formally licensed second-hand cell phone is strictly managed, geared up with a brand-new battery, geared up with a brand-new HarmonyOS 2 system, and comes with a one-year guarantee. Up to now three years, Huawei’s cumulative shipments of cellphones have reached 600 million, revitalizing the second-hand cell phone market. A lot of previous and 5G cellphones have discovered new house owners.

HarmonyOS progress thus far

Huawei formally launched the HarmonyOS system on June 2nd. Within the first week, by June 9, this technique already had over 10 million customers. In two weeks, this working system had over 18 million customers. After a month of improve, HarmonyOS had over 25 million customers. Earlier than the tip of July, this determine elevated to over 40 million. In lower than two months, as of early August, this working system had over 50 million customers. As of August 30th, HarmonyOS had over 70 million energetic customers. Nevertheless, a couple of days later (September, 2nd), the corporate introduced that it has over 90 million customers.

As of September 13th, HarmonyOS customers formally exceeded 100 million. By September 27th, Huawei HarmonyOS customers had elevated to 120 million. As of October this yr, the HarmonyOS 2 had over 150 million customers in China. This improve is Huawei’s largest system replace in its historical past. Sadly, there isn’t a report with regard to the particular date that HarmonyOS 2 will arrive in world fashions. In reality, Huawei remains to be sustaining the EMUI 12 on prime of Android 10 for world variations.

Conclusion

The common substitute cycle of 5G smartphones is 27 months. That is additionally an necessary purpose why Huawei can keep the inventory market. For instance, the primary 5G cell phone of the nova sequence was launched in 2019, and it’s nonetheless on-line in massive numbers. Lately, Huawei launched the Snapdragon 888 4G model of the P50 Professional. The launch of the 4G model can be a dedication to the inventory market. As soon as the 5G chips are usually equipped, Huawei can shortly return to its correct place.