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Huawei crashes Apple in China, and the US is partially guilty



Demand for Chinese technology companies is hot, though the overall market for smart phones in the country is declining. Huawei's sales in China have risen by more than 20% in the last quarter of 2018, and experts say this is partly due to the US government's global campaign against that company.

"The latest tensions between the US and China have increased patriotism in Chinese consumers," said Jusy Hong, an analyst at IHS Markit, a research firm.

Huawei has sold 30 million phones in China in the last three months of 2018, almost three times more than in China Apple (AAPL)according to data released by research companies Canalys and IDC this week. Apple's sales fell by almost 20%.

"Cult status"

Huawei's success in China, the world's largest smart phone market, is more than geopolitical.

Chinese consumers love their leading, premium phones because they have big cameras, cutting edge technology and cost less than the newest iPhone, analysts say. And by offering a choice of cheaper phones, Huawei is able to focus on a larger market.

The US wants to stop Huawei's global progress. Maybe it's too late
Also this year in favor ZTE (ZTCOF), a competing Chinese manufacturer of smart phones and telecommunications devices. The US government has banned the purchase of crucial US parts for months last year as a contravention of a deal that resolved US claims that the company had violated sanctions against Iran.

Sales of smart phones for ZTE fell by almost half last year, and "this amount went to Huawei," Hong said.

Two other Chinese rivals, Oppo and Vivo, are on Huawei's heels, but their sales have risen by less than 10% in the fourth quarter of last year. Xiaomi, another top Chinese brand that aggressively expanded in India and Europe, had a catastrophic quarter, which had hit 28% sales drop. towards Canalys.

Huawei and its founder, Ren Zhengfei, enjoy the cult status in China, Canadian analyst Nicole Peng says.

Most Chinese see Rena, who started his company with several thousand dollars and built it into a $ 100 million worth of wildlife, "as a very respectable person," Peng said. This respect also extends to the Huawei brand.

Under the fire from the United States

On the other hand, Huawei's international reputation is beating.

The American campaign against Huawei has led to a growing number of countries considering potential restrictions on the use of Huawei's telecommunications equipment in the 5G network, which will provide super-fast wireless internet in the coming years.

US boosts pressure on Europe to remove Huawei

Washington says the Chinese government could use Huawei's equipment to spy on other nations, although it has not provided any evidence to the public. Huawei denies that any of its products pose a threat to national security and says it would reject any Beijing request to use them for espionage.

Australia and New Zealand also blocked the company from 5G network equipment last year.

Huawei has given up what he calls "irresponsible decisions" of some countries he says are based on "ideological and geopolitical considerations," not legitimate concerns about technology.

US justice ministry also accused Huawei of violating sanctions against Iran and stealing technology T-Mobile (tmusa), Officials Urge Extradition of Financial Director Meng Wanzhou from Canada.

Huawei and Meng deny any mischief.


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