Huawei Surpasses Samsung as World's Largest Smartphone Seller Despite U.S Sanctions

July 30, 2020 10:08 pm

Beijing (PingWest)- Huawei has surpassed Samsung as the world’s biggest smartphone maker in the second quarter of 2020, driven by resilient demand in China even as global demand for phones plunged amid the pandemic.

Huawei shipped 55.8 million phones in the three months ended in June, surpassing longtime rival Samsung, which shipped 53.7 million, according to the Canalys report.

The smartphone shipments of Huawei still declined 5% annually, but it is a lot better than Samsung, which suffered annual decline of 30% for smartphone shipment, according to Canalys.

While most of companies are struggling to maintain its business during the pandemic, Huawei has been aided by strong demand for smartphone in the domestic market as China was among the first countries to largely recover from the pandemic’s effects.

“Our business has demonstrated exceptional resilience in these difficult times,” a Huawei spokesman said.

Huawei’s achievement also reflects the Chinese economy’s resilience and its rising dominance in its home market.

Huawei now sells nearly two-thirds of its handsets in China, in comparison, Samsung only has a very small presence in China, Samsung only holds less than 1% of the market in China.

Huawei’s consumer business group managed smartphones business, which shipped 72% of its smartphone during the second quarter in its home market. Huawei’s consumer business group is the company’s biggest operating segment, which generated revenue of CNY255.8 billion in the first half of 2020. Huawei’s total first half revenue came in at CNY454 billion, up 13.1 percent from the same period of last year.

Huawei’s overseas shipments fell 27% in the quarter largely due to U.S sanction that cut the company off from Key American tech and supplies.

Other countries like Australia and Japan have taken steps to block or restrict the Chinese company's participation in their 5G rollouts, and European telecoms operators including Norway's Telenor and Sweden's Telia have passed over Huawei as a supplier.

UK’s National Security Council decided earlier this month to ban the purchase Huawei 5G components from 31 December 2020 and to order the removal of all existing Huawei gear from the 5G network by 2027.