Huawei was one of the largest mobile phone manufacturers in the world, selling hundreds of millions of phones every year until last year, before selling its Honor division to a Chinese consortium. The sale of that division to a Chinese consortium left Huawei without the ability to produce and sell the vast majority of phones it sold until now, and Xiaomi is profiting.
Huawei dropped substantially in sales in 2020 and 2021, and those from Xiaomi managed to substantially increase their income and profit by grabbing a good share of the market that belonged to their competitors. In the last 3 months, Xiaomi has increased its phone sales by 32%, and this to a very large extent by grabbing the market share that Huawei had, and which was lost due to the problems with phone manufacturing brought by US sanctions.
Huawei: Problems Caused by the US and Xiaomi's Profit
Huawei fell from the list of Chinese phone manufacturers after selling the Honor phone division, something that was anticipated by some of the analysts who follow the local market very closely. Until Honor manages to return to the level of sales it generated when it was part of the Huawei company, the other manufacturers will have the attention of the whole world, and Xiaomi could grow in the next period due to Huawei's problems.
Huawei also took into account the sale of the division that produces its premium phones, or the one that manufactures telecommunications equipment, as the US sanctions cannot be removed too easily. Huawei is trying to find solutions to overcome the situation it is in, but things are too complicated to be solved even by the Chinese government, so the chances of the situation returning to normal are quite small for now.
Huawei is fighting hard to stay relevant on the smartphone market, but it needs much more to fulfill its mission.
