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NEW DELHI: Having put a dent in the company’s business globally, US suctions on Huawei are starting to have an affect in its home turf, also its biggest market. According to Counterpoint Research, Huawei lost the top spot in China’s smartphone market in January 2021. Rival Oppo took the first spot for the first time, followed by Vivo, Huawei, Apple, and Xiaomi.

The report says Oppo cornered 21% market share in China in January, while Vivo and Huawei had 20% each. Oppo and Vivo are both owned by BBK Electronics, which also owns brands Realme and OnePlus. Apple and Xiaomi were in the fourth and fifth spots with 16% market share each.

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“Huawei along with HONOR has been constantly losing its share in the Chinese market due to component shortages following US sanctions, and fewer new launches. Its inventory for key components has been depleting and it will not be able to source 5G smartphone components," the company said in a blog post. “Over 65% of devices sold in China in Q4 2020 were 5G capable. Any absence of 5G models reduces the addressable market size for Huawei in China while the absence of Google services does the same for 4G devices."

Counterpoint said the “declining trend" is expected to continue all through 2021 and other smartphone makers will take up the market share Huawei loses. The company had spun off HONOR as a separate brand late last year to deal with the component shortages that sanctions have forced on it.

Huawei’s decline in the market started in August 2020, according to the post. The report said the telecom giant has “shifted its focus" to premium devices so that it can sell phones with higher margins, to “make the most of its depleting inventory of components".

"This has further left a gap in the mid segment of the market," Counterpoint added.

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