Samsung enjoys the US war vs. Huawei

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Samsung enjoys the US war vs. Huawei

Samsung enjoys the US war vs. Huawei

The rating agency Fitch said that Samsung would be a beneficiary in the war between Huawei and the US government. The conflicts between Huawei and the United States would be an opportunity for Samsung to strengthen its position in the global smartphone market.

Huawei, which loses access to Google's Android operating system, is expected to affect device sales worldwide. The absence of Android on Huawei devices should lead consumers to turn to other brands.

The decline in Huawei sales should lead consumers to gradually leave the Chinese brand. This condition may be an opportunity for Samsung to increase its market share.

"Consumers who know the Android operating system tend to consider buying a brand of smart phones other than Huawei," said Fitch, quoted by Reuters.

Trump's decision to limit US companies to provide hardware, software and various components for Huawei smartphones.

In addition to having implications for Huawei's business, Fitch said Apple could become the next victim of the US-China trade war. It is estimated that a trade war will accelerate the decline of China's market share.

Business Times reports, due to policy restrictions imposed on Huawei, to companies such as Google, Intel, until Qualcomm ceases its working relationship with Huawei. Therefore, Fitch predicts that Samsung can increase its market share amid the difficulties that Huawei is facing.

"Samsung can regain its market share, especially in regions such as Europe, Asia, China and South America, where Huawei achieved most of its growth in the last quarter," said Fitch in an official statement.

Trade tensions between the United States and Huawei may give Samsung the opportunity to gain initial market share leadership. Nevertheless, this possibility will depend on the duration of the sanctions.

Huawei is the only major company to post growth, with an increase in first-quarter mobile phone shipping volume of 50% over the same period of the previous year.

The global volume of smartphone shipments in the first three months of this year dropped 6.6% from last year to 311 million units.

Huawei's market share in shipments increased to 19% in the first quarter of 2019, compared with 12% in the first quarter of 2018, closing the gap with 23% of Samsung's share.

At the same time, Samsung's handset segment declined in the first quarter, with revenue down 6% and operating profit down 40% year-on-year.
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