Huawei is thriving…for now
Chinese smartphone manufacturer Huawei announced this week that it has surpassed Apple as the second largest mover of smartphones.
The company reported that in the second quarter of this year, they sold roughly 54 million phones, which represents a 40 percent year-over-year increase according to various research firms. In fact, last quarter, Huawei sold just 16 million less smartphones than Samsung – the largest smartphone seller.
Even more impressively, this growth has occurred without US sales. Because of security concerns, government officials have banned Huawei from selling their products in the United States, fearing that China will be able to access users’ private data.
Nevertheless, this has not halted the Chinese firm’s rapid growth, as their sales doubled in Asia in the past year and have also experienced significant increases in Europe and Africa.
However, the company still faces a massive hurdle if it hopes to maintain its massive growth rate. Huawei faces pressure as other companies roll out 5G-capable phones – if it cannot gain the trust of major countries with their networks, then it will not be able to expand, giving it a major disadvantage against other phone manufacturers.
Because of Huawei’s close ties to the Chinese government, many countries worry that Huawei will supply officials with consumer data. This is an extreme breach of policy that not only looks poorly on the country but also threatens national security.
Huawei may be excelling in sales, but it still needs to create more trust if it hopes to continue its fight against its competitors.