Huawei’s handset shipments in China rose two-thirds during the third quarter, helping the firm to hit a market share of 42%, data from market research firm Canalys shows.

Why it matters: The data indicates that the world’s second-largest smartphone maker has fared well at home despite the US blacklisting that is impairing performance overseas.

  • Chinese consumers rallied behind the company after Washington moved to bar the Chinese telecoms giant from doing business with American companies.
  • A sense of patriotism is likely to be a key driver of the sales surge as 42.9% of Chinese consumers intend to choose Huawei when switching from iPhones.

Unchanged:

Details: This quarter marks Huawei’s sixth consecutive quarter of double-digit growth, and places the Shenzhen-based company way ahead of its competitors with a 25 percentage-point lead over second-placed Vivo.

  • Huawei smartphone shipments in China expanded 66% year on year to 41.5 million units, despite the overall market shrinking 3%.
  • As Huawei consolidated its position in the market, all other vendors lost ground. Vivo supplanted Oppo in second place, while Xiaomi fell to fourth, Canalys said.
  • Apple kept hold of fifth place in part due to September’s iPhone 11 launch. The new handset made up 40% of its shipments in the period.

“Huawei opened a huge gap between itself and other vendors. Its dominant position gives Huawei a lot of power to negotiate with the supply chain and to increase its wallet share within channel partners.”

-Nicole Peng, vice-president of mobility at Canalys

Context: The US ban, enforced in May, cut off Huawei from key suppliers, including chipmakers and Google’s Android operating system used in its devices.

  • In response, Huawei announced it was building its own OS and, most recently, entered the electric vehicle business.
  • As Washington officials urge world leaders in politics and business to shun Huawei from 5G networks, Huawei claims to have secured more than 50 contracts worldwide.
  • On Monday, a report by the Sunday Times claimed that the UK, one of the US’s closest allies, is preparing to allow Huawei to be involved in the development of next-generation communications.

Eliza Gkritsi

Eliza was TechNode's blockchain and fintech reporter until July 2021, when she moved to CoinDesk to cover crypto in Asia. Get in touch with her via email or Twitter.

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