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It is the king of domestic mobile phones that dominated the second quarter of 2020 with a market share of 44.3%! Recently, with the official announcement of Huawei's pure-blooded HarmonyOS ecosystem, someone launched an interesting vote: How long will it take for Huawei to return to the peak of 50% market share with the HarmonyOS system and Kirin chips?
To be honest, when I saw this question, my first reaction was: Wait, has Huawei really reached 50% market share? With this question in mind, I began to investigate deeply. It turned out that there were some misunderstandings about the issue itself. Let's take a look at whether Huawei can return to the top and why there is such a controversy.
First of all, we have to clear up a misunderstanding: Huawei's market share in 2019 did not reach 50%. According to reliable data, Huawei's share of the domestic market in 2019 was 38.5%. So, why would anyone think that Huawei once reached 50% of the market share?
There's an interesting story in this. In 2019, Huawei suffered an "embargo" from the United States, especially the interruption of the supply of Google's GMS service. And guess what? This has stimulated the enthusiasm of domestic consumers to support Huawei, which has directly promoted the rapid growth of Huawei mobile phones in the domestic market. Isn't that ironic? The United States wanted to suppress Huawei, but instead helped Huawei.
So, when is Huawei's true peak? The answer is the second quarter of 2020. At that time, Huawei's share of the domestic mobile phone market reached a staggering 44.3%. Although it did not reach 50%, this is already the highest in Huawei's history. It can be said that Huawei was really in the limelight at that time, dominating the limelight!
However, the good times were short-lived. Since then, Huawei's market share has gradually declined. For the whole of 2020, Huawei's market share was finally fixed at 38%, basically returning to the level of 2019. Does this make you feel a bit like a roller coaster?
So the question is, why was Huawei able to reach such a high market share in the second quarter of 2020? There are a few key factors in this:
Dual-brand strategy: At that time, Huawei also had Honor, a sub-brand focusing on the low-end market. Together, Huawei and Honor can compete fiercely with competitors in all price segments.
Brand sentiment: Affected by the US sanctions, many consumers choose to buy Huawei mobile phones out of support for domestic production.
High shipments: Especially in the low-end market, Huawei and Honor have very impressive mobile phone shipments.
However, the situation has changed dramatically now. First of all, Glory has gone out on its own. This is undoubtedly the loss of an important right-hand man for Huawei. To make matters worse, Honor has now become a formidable competitor to Huawei in the domestic market. Isn't that dramatic? What was once an ally is now a fierce enemy.
So, where is Huawei now? Although Huawei has launched the much-talked-about Mate 60 series and P70 series with breakthroughs in chip technology, they still face great challenges:
Chip limitations: Although Kirin chips have achieved breakthroughs, they are still limited in terms of process, capacity, and cost.
High-end positioning: In order to maintain profits, Huawei can only use these high-cost chips for high-end mobile phones, which limits their market coverage.
Market competition: In the high-end market, Huawei is mainly competing with Apple. But even if Huawei could completely replace Apple, it would only have about 20% of the market.
Economic environment: Under the current economic situation, the demand of the entire mobile phone market is not optimistic, especially the high-end mobile phone market has been hit harder.
Therefore, if Huawei wants to return to the dream of 50% market share, to be honest, it is very difficult. Not only will old rivals such as Apple, Xiaomi, OPPO, and vivo not give way easily, but even Huawei's own old buddy Glory will become a strong competitor.
What's more, consumers' wallets are also a big issue. In the current economic situation, high-end mobile phones of more than 5,000 yuan are a lot of expenses for many consumers. Even Apple has had to cut prices to maintain sales, and it is indeed a bit difficult for Huawei to return to the top with high-priced phones.
So, what does the future hold for Huawei? Personally, I think that although it is difficult for Huawei to return to the peak of 50% market share, it still has a lot of room for development. With the advancement of technology and the reduction of costs, Huawei is likely to launch more products in the price segment in the future to expand its market coverage. At the same time, Huawei's brand influence and technical strength should not be underestimated, and it is believed that it will continue to exert its strength in the high-end market and compete fiercely with brands such as Apple.
Finally, I would like to say that market share is important, but it is not the only measure of a brand's success. Huawei's ability to achieve a technological breakthrough and return to the mobile phone market despite all the difficulties is a remarkable achievement in itself. No matter what the future holds, Huawei's fighting spirit is worth learning from and respecting.
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