As a result of blocking access to all Google applications except for the widely available version of the Android operating system expected deterioration of the competitiveness of Huawei in the smartphone market, which to her at the end of the first quarter belonged to the second place after Samsung, but before Apple.
American semiconductor vendors: Intel, Qualcomm, Xilinx and Broadcom, also refuse from the cooperation with Huawei and the provision of component products to the detriment of their own business, because the microchip market is experiencing a slowdown due to oversupply.
However, in the short term, these events will not affect Huawei. The share of Huawei in the market of smartphones and other mobile devices, component 15%, in my opinion, will remain virtually unchanged, as the company has a significant inventory of components and leads the development of its own operating system. Moreover, it is possible to search alternative suppliers, such as Asian MediaTek and Realtek, which are able to support not only sales of smartphones Huawei, but also the deployment of the 5G network. However, if Huawei will not be able to find alternative suppliers in the future this year, likely reducing the market share of mobile devices to 10-12% in the first half of 2020.
Difficulties with the supply of spare parts for Huawei can be beneficial to Samsung, which also experiences difficulties with the implementation of smartphones after discovery of the defect at the display of the new model Galaxy Fold, but also due to the slow development of a key segment of the RAM. In the first quarter, the company sold 71.9 million smartphones — 8.1% lower than a year earlier. Now, however, reduced the competition between the two key players in the mobile market and reduces the risk of losing lead Samsung, even despite the possible reduction in market share from 20% to 18% this year.
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