Huawei to lower its smartphone shipment goal in 2020 due to US trade restriction, says internal source

In 2019, Huawei smartphone shipment reached 240 million units with a year-on-year increase of 20% but the trade restriction from the US remains a big challenge, which may lead to lower shipment goals for this year, says an industry insider.

Huawei is conservative about the outlook for its smartphone shipments in 2020 and is likely to set its shipment goal for the year 30 million units below compared to 2019, according to industry sources (via Digitimes).

In May 2019, Huawei restricted from purchasing US technologies including the processors and software services Google’s GMS (Google Mobile Service), which majorly affects its smartphone consumers outside of the Chinese market.

“In 2020, we will continue to remain on the US Entity List. We won’t grow as rapidly as we did in the first half of 2019, growth that continued throughout the year owing to sheer momentum in the market. It’s going to be a difficult year for us.” Says Eric Xu, Huawei’s Rotating Chairman.

To prepare an alternative the GMS, Huawei has started developing the ecosystem for Huawei Mobile Services (HMS) to sell smart devices outside of China and in 2020, the company has promised to go all out to build the HMS ecosystem so it can ensure overseas smartphone shipment.

Currently, Huawei’s performance in the domestic market is still robust and rising market share day by day. In 2020, Huawei will likely focus more on 5G smartphones to get extra shipment numbers to maintain its position as the second-largest smartphone maker.

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