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Honor without Huawei will be able to take only 2% of the smartphone market
This month, Huawei Technologies announced its intention to sell the rights to use the Honor brand and related assets to new owners to protect the brand from US sanctions against it. TrendForce experts suggest that Honor will only be able to claim 2% of the global smartphone market next year.
Image source: Android Authority
It is predicted that Huawei Technologies itself will be able to occupy no more than 14% of the smartphone market by the end of this year, although it will still surpass the main Chinese competitors in the face of Xiaomi, OPPO and Vivo. But already next year, Xiaomi and OPPO will be able to occupy 14% of the smartphone market, and Vivo will pull up from 9 to 11%. In fact, Huawei, in the context of continued sanctions and a general shortage of components, will be able to claim only 4% of the smartphone market, and the Honor brand, which gained independence, is unlikely to take more than 2%.
Image source: TrendForce
Apple will also take over some of the potential customers of Huawei and Honor, as Samsung will certainly do, so the competition with Chinese manufacturers will not be limited to. An attempt to redistribute the smartphone market, according to TrendForce representatives, could cause a shortage of certain components next year. On the other hand, some manufacturers may set too optimistic targets for 2021, and in case of disappointment they will have to adjust their own plans.
Honor, as a young player in this competitive market, may lose access to the necessary volumes of components. With a smaller production scale, Honor will also face higher costs. Finally, it is not entirely clear how Honor will be able to replace the HiSilicon mobile processors, which were considered the hallmark of the brand during the period of its involvement in the Huawei business. Among Chinese companies, Honor will face the fiercest competition from Xiaomi, as its sales model is also focused on Internet channels and a young consumer audience.