Huawei ‘s situation is complicated, much more than it may seem to many at first glance, and is facing problems not only in international markets, especially in the U.S. where the Chinese technology is still vetoed today. Now it also has to face a slow but already identified decline in its local market, China, the key to its success a few years ago, and the main asset of its livelihood today.

There were times, now sadly distant for the company, when Huawei came to be considered “The Chinese Apple”, and with that business card it embarked on an international expansion that, until the blockade by the Trump administration, took the company to the top. However, and although the first months after the US veto did not seem to deflate its figures, for some time now it does seem that the impact is greater every day and, consequently, its numbers suffer significantly.

It seems incredible that just a year ago Huawei was the company that in a single quarter sold 55.8 million devices, thus overtaking Samsung with its 53.7 million units sold, and thus becoming the best-selling brand in the world. However, even then, in the second quarter of 2020, its sales were already down 5% in China compared to sales in the same period of the previous year. Paradoxically, at that time Huawei reached the top, but began a rapid decline.

Many thought at the time that Huawei had dodged the bullet, that the US veto had not weakened the technology company, and the decline in sales in China was blamed on the circumstances associated with the pandemic, but seen now with a bit of perspective, it seems that it was the sign of something else, and that the company’s executives had already noticed it and had probably already begun to work on it.

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Today we are no longer talking about prospects, but about results, and according to an IDC sales report, Huawei is no longer among the companies that sell the most smartphones in China, let’s remember, its local market. As you probably already know, consulting firms usually prepare sales lists in which they show the individual data of the main companies and, closing these tables, an aggregate with the sales of the rest of the market, a group that is usually called with the generic “Others”. A category in which, for the first time in years, they happen to add the sales of the company.

<img src=” 1200w,×300.jpg 500w,×378.jpg 630w,×461.jpg 768w,×600.jpg 1000w,×354.jpg 590w,×240.jpg 400w” alt=”Huawei is no longer TOP 5 in China” width=”1200″ height=”720″ />

In the ranking we find, in descending order, Vivo (23.8%), Oppo (21.1%), Xiaomi (17.2%), Apple (10.9%) and Honor (8.9%). And it is very surprising, knowing the positions that Huawei occupied just a year ago, to see that in the second quarter of this 2021 it did not even reach 9% of sales in its country, which would have given it the fifth position. With this result, it disappears from the list of best-selling brands.

There are two paths that Huawei can take today and, fortunately for the technology company, both are compatible. On the one hand, the most obvious is to try to improve its sales. Its efforts with HarmonyOS could be positive in this regard, especially if it manages to attract other manufacturers (both local and international) to its platform. The problem? Many of them will probably see the opportunity to get rid of a formidable rival, and therefore prefer to stay on Android, pending the next moves of the U.S. administration.

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The second way to try to ensure its persistence is diversification. Huawei does not only manufacture smartphones, as we all know, but this diversification must not only be maintained, but also increased and, as far as possible, internationalized. For example, in April this year we met the Arcfox Alpha S, its first car and that, by features, design and performance, points directly to Tesla. If the smartphone market is no longer its fiefdom, the solution that seems most reasonable is to look for new markets and try to repeat the success it has enjoyed until less than a year ago. It is not an easy move, of course, but it is possibly essential for its survival.