TrendForce expects the smartphone market to slowly recover in 2021, but Huawei won’t benefit – ClearTips

TrendForce expects the smartphone market to slowly recover in 2021, but Huawei won’t benefit – TechCrunch

After a disappointing year, the global smartphone market will begin to slowly recover in 2021, predicts Trendforce. But Huawei will not benefit and, in fact, will be left out of the list of top six smartphone manufacturers in the world by the production volume of the research firm.

In 2020, global smartphone production fell 11% year-on-year to 1.25 billion units. This year, TrendForce It is expected to grow 9% to 1.36 million units, as people replace old equipment and demand rises in emerging markets. But even a modest recovery is dependent on how the epidemic affects the economy and the global chip shortage that is currently causing production delays in almost the entire electronics industry.

In 2020, the top six smartphone brands in order of production volume were Samsung, Apple, Huawei, Xiaomi, Oppo and Vivo. But this year, Trendforce expects Huawei to be excluded from the top-six list of Samsung, Apple, Xiaomi, Oppo, Vivo and TransSense in the Samsung rankings.

Those six companies are expected to account for 80% of the global smartphone market in 2021, while Huawei will come in seventh place.

The main reason for Huawei’s decline is the division of its budget smartphone brand, Honor. Huawei confirmed in November that it was selling Honor to a consortium of companies to protect the division’s supply chain from the effects of United States government sanctions.

The spin-out was meant to shield Honor from restrictions that hurt Huawei’s business. But “it remains to be seen whether the ‘new’ Honor can attract the attention of consumers without Huawei’s support. Furthermore, Huawei and the new Honor will compete directly against each other in the future, especially if the former Somehow the latter may have been freed from US trade restrictions, ”the Trendforce report said.

In a previous report published soon after Honor’s sales announcement, TrendForce predicted that the deal with a global chip shortage meant that Huawei would take only 4% of the market in 2021, compared to 17% held in 2019 , And an estimated 14% in 2020. Apple is expected to take some market share from Huawei’s high-end smartphones, while Xiaomi, OPPO and Vivo will also benefit. TrendForce expects the new Spun-Out Honor to take 2% market share in 2021.

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