It seems the trade ban enforced on Chinese Huawei by the United States (US) is going to affect the overall smartphone market. Market analysis firm, Canalys, today announced that it has lowered its forecasts for the overall smartphone shipments in 2019, by 3.1%. The firm now predicts that 2019 will now see 1.35 billion units being shipped in total.
“Due to the many uncertainties surrounding the US/China trade talks, the US Executive Order signed on 15 May and subsequent developments, Canalys has lowered its forecasts to reflect an uncertain future," the firm wrote in a blog post.
Further, the firm stated that it expects “stringent" restrictions on Huawei from the US, once the current 90-day reprieve expires. That, the firm says, will affect significantly affect the company’s ability to “roll-out" devices in the short term, despite Huawei having taken steps to deal with this crisis.
“Its overseas potential will be hampered for some time. The US and China may eventually reach a trade deal to alleviate the pressure on Huawei, but if and when this will happen is far from clear," says the post.
“We expect the other major smartphone vendors will have short-term opportunities while Huawei struggles," said Rushabh Doshi, Research Director at Canalys. “It will take vendors until late 2019 to react to the new opportunities," he added.
Finally, the firm also expects the market to stabilise and even rise by 3.4% in 2020, thanks to innovations in hardware and 5G.
“Moving into 2020, most of the major mobile supply chain and channel will have active contingency plans to mitigate Huawei’s decline and be ready for 5G device roll-out in many markets," the firm wrote.