How Huawei’s business is doing around the world
Huawei continues to lead the global telecom equipment market but has lost ground to Western rivals outside of China.
Chinese tech giant Huawei, under pressure from US restrictions , still manages to lead the global market when it comes to sales of telecommunications equipment.
This is what emerges from the report published by the market research firm Dell'Oro Group, on the global telecommunications infrastructure market for the fourth quarter of 2020.
But if Huawei leads the market, the Shenzen giant lost ground to Western rivals in cellular equipment markets outside of China last year.
A sign that the US campaign to curb the Chinese manufacturer is starting to have an impact.
All the details.
THE TLC EQUIPMENT MARKET
Dell'Oro Group's report reveals the top seven supplier companies in the telecommunications equipment market which include Huawei, Nokia, Ericsson, ZTE, Cisco, Ciena and Samsung. All these companies represented around 80-85% of the overall market.
Tlc equipment means kits for broadband access, microwave and optical transport, Radio Access Network (Ran), SP Router & Carrier Ethernet Switch (CES).
STILL DRIVEN BY HUAWEI, THE FIRST GLOBAL VENDOR
According to the Dell'Oro Group study, Huawei's market share increased by 2-3 percentage points during the year 2020.
In the year 2020, Huawei reaches a market share of 31% in terms of revenue (compared to 28% in 2019), followed by Nokia and Ericsson, both with a share of 15%. ZTE, Cisco and Ciena ranked fourth, fifth and sixth with market share of 10%, 6% and 3% respectively. South Korean giant Samsung came in seventh with 2%.
Although both Ericsson and Nokia have improved their Ran positions outside of China, initial estimates suggest that Huawei's global telecommunications equipment market share, including China, has improved by two to three percentage points for the 'full year 2020 ”, reads the Dell'Oro Group report.
BUT LOSS SHARE OUTSIDE CHINA
However, the situation is less rosy for Huawei outside of China.
Looking at the Ran market excluding China, Dell'Oro data showed that Huawei's share fell from 22% to 20%, the Wall Street Journal pointed out.
Therefore, outside of China, Huawei remained in third place behind rivals Ericsson and Nokia, which both gained market share last year, according to the research firm.
EUROPEAN ERICSSON AND NOKIA EARN
Ericsson consolidated its former Chinese market share at around 35%, up 2 percentage points, while Nokia gained 1 percentage point to finish the year with around 25% share.
On the other hand, Ericsson and Nokia have increased their Ran (radio access network) market share outside of China. Furthermore, the report adds that the revenues of these companies continue to be affected due to the state of implementation of 5G communication technology, especially in the highly concentrated market.
HOW THE SHENZEN COLOSSUS IS IN THE SMARTPHONE MARKET
Finally, at the end of last year, Huawei also lost the crown of the largest smartphone maker in the world, falling to fifth place under the pressure of the United States.
US sanctions hit Huawei's smartphone business: Gartner data showed sales fell 41.1% year-over-year in the fourth quarter of 2020.
The Journal reports that a Huawei spokesperson referred to an internal speech earlier this year by Ren Zhengfei, the founder of the company, in which he told employees that profits and revenue increased in 2020 despite the new challenges, with uninterrupted transactions, deliveries and supplies.
However, Ren Zhengfei noted that "we must dare to abandon some countries, some customers, some products".
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/come-vanno-gli-affari-di-huawei-nel-mondo/ on Tue, 09 Mar 2021 14:29:02 +0000.