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How Huawei’s Pain May Be Samsung And Apple’s Gain

The adage, one man’s poison is another man’s cure, could aptly describe the scheme of things that may unfold in the global smartphone market. Chinese tech giant Huawei has been in the eye of the storm for the past two weeks now. The biggest casualty – so far – of the ongoing trade war between US and China, the smartphone business of Huawei faces uncertain future with Google indicating that it will not give Android support to the company. Now this could lead to two of Huawei’s biggest rivals – Samsung and Apple – gaining an upper hand in the smartphone business.

As per analyst Ming Chi-Kuo, Samsung stands to make big gains out of Huawei’s pains. According to Kuo, Samsung’s estimated shipments may rise “from 290 million to 300-320 million.” This, as per a report by 9to5Mac, is depended on Huawei’s sales declining in non-Chinese markets. Almost 45% of Huawei’s smartphone shipments come from non-Chinese markets and Samsung could gain in those places.

If Samsung stands to gain mostly, its bitter rival Apple may find itself in a bittersweet situation. Kuo estimates that “Apple’s market share gain in non-Chinese markets is likely to offset its market share loss in the Chinese market, and we expect that annual iPhone shipments could return to around 200 million units.”

Apple which is facing a few issues in China market could hurt even more. There have been reports about a rising “anti-Apple” sentiment that is brewing in China because of Donald Trump’s ban on Huawei. A few Chinese companies reportedly banned their employees from buying Apple products. So while Apple may lose more shipments in China, it could gain an upper hand over Huawei in other markets.

As for Huawei, Kuo feels that. “the most important impact would be losing brand trust if Huawei couldn’t offer stable shipments due to the U.S. export ban. The motivations of customers (consumers and operators) to buy Huawei products might be lower due to unstable shipments.” Let’s wait and watch whether Huawei will be able to ride the storm or Apple and Samsung will end up benefitting from this situation.―Gadgets Now

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