Perhaps when he signed a ban on US companies such as Google, Qualcomm and Intel in cooperation with Huawei, President Trump did not expect that he would contribute to the United States' No. 1 smartphone company. From the beginning of 2019 – when the US-China trade war heated up significantly, a series of companies in China voiced a boycott of Apple, a ban on the iPhone, on the other hand gave away free phones to employees. Social network storms erupted on Weibo, and as a result, Huawei sales were still skyrocketing in China despite all bans.
But not all Chinese will support Huawei. For example, Lei Jun, CEO of Xiaomi. Just last Friday, the Mezzanine leader convened an extraordinary meeting to announce the plan to expand the new retail chain. By brandishing 5 billion yuan, Xiaomi will increase the commission rate with retail partners and sales employees to achieve the goal of becoming China's No. 1 smartphone company, replacing Huawei.
The Chinese smartphone village civil war has really started, as we had previously predicted.
When Huawei was still incomplete, Xiaomi swung money to prepare for expansion.
It is not difficult to realize that, when blocked with Google and ARM, Huawei's global expansion was officially closed. Huawei's ability to design chips that compete with Snapdragon or Exynos is now zero, and the ability of international users to embrace a smartphone without any Google application is zero.
The only way to compensate is to fight more aggressively in the domestic market. Here, Huawei is still the No. 1 with more than 100 million smartphones sold in 2018. Even before Google "retired", Huawei still set a goal to occupy half of the home market – about 200 million. If the purchasing power this year does not decrease too much compared to last year.
In this goal of Huawei, it is clear that the biggest losers will be other Chinese firms, because in China there are no foreign smartphone firms with a significant market share except Apple. Apple is only ranked 5th in China, far behind OPPO, Vivo and Xiaomi. If Huawei wants to sell 200 million units, Huawei will mainly have to take food from OPPO, Vivo and Xiaomi.
Huawei lost its global expansion, Xiaomi, OPPO and Vivo naturally had to rise to take their place!
Indeed, Huawei once intended to do so. Earlier, in a global press release, Huawei confirmed that Honor brand will rise to No. 4 globally, ie knocking Xiaomi out of its current chair. In an interview in April, Huawei's mobile CEO Richard Yu loudly criticized OPPO and Vivo were "small companies, not investing money and copying".
Ironically, both at the same time, Huawei was blamed by the United States for a blow: not shaking hands with American companies was considered to be farewell to the international market. If Huawei could not sell smartphones internationally, who would rise to replace Huawei to play the role of challenging Apple and Samsung?
Of course other Chinese companies. When Xiaomi showed off its investment of 5 billion yuan in the distribution chain, OPPO also showed off 10 billion yuan of investment in product research and development, Vivo showed billions of dollars to invest in expanding the factory. Recently, both OPPO and Xiaomi have just opened up to reveal camera technology under the screen. The huge investment of these firms in near-high-end models like Mi 9 (now available … 4 versions) and Reno is extremely clear: from the bottom of the seat, these Chinese firms want to rise up and sit on it!
No need to beat has eliminated a strong opponent.
Pain in place of Huawei, which used to be a pioneer for Chinese smartphones to screen, is confident of knocking Samsung out of the position of smartphone king, now has to find a way to prevent other "underdogs" rebelling. Huawei smartphones will now have to put their destiny into their homeland of China, which has been continuously declining in the past 3 years. Losing the international market is losing half of the sales right away while consumers are still looking for high-priced, affordable smartphones …
Perhaps now what Huawei needs most is the United States will be light-hearted, after they reach the original goal. Thus, Huawei can really come back stronger.