Chinese manufacturer Huawei was and is still suffering greatly from US sanctions. Huawei’s Smartphones are selling worse and worse globally. As of now, the United States is somewhat more gracious with its direct competitor Xiaomi. However, there is still no question of a U-turn at Huawei.
Huawei has been struggling with a trade embargo for some time. Xiaomi was blacklisted during the Trump administration in January 2021. Classified as a “company of the Chinese Communist military,” it was forbidden for at least American citizens to own shares of Xiaomi.
This intervention has now come to an end, as reported by the Reuters news agency. Xiaomi has been removed from the blacklist. It appears that there has been an agreement between the company and the US Department of Defense. However, real details have not yet come to light. After the announcement, Xiaomi’s shares jumped immediately.
For Huawei, the news could be something of a ray of light. While a full lifting of the trade embargo is not expected shortly, the new Biden administration of the US seems at least ready for communication. For Huawei, a return to normality would mean that the catastrophic slump in market share could at least be cushioned in recent months.
Huawei: Market shares reduced drastically
At Huawei, the numbers currently know only one direction – it’s going down sharply. This is also clear from the latest figures on the European smartphone market. According to them, Huawei now has only a market share of 2 percent on the continent. By comparison, in the same quarter of the previous year (Q1/2020), the figure was 9 percent. This corresponds to a drop of no less than 77 percentage points.
Huawei’s loss is Xiaomi’s profit. In Europe in particular, the figures here have been rising sharply recently. The manufacturer currently has a market share of 18 percent.