Chinese telecom giant Huawei has been accused of intellectual property theft by the US Justice Department. This made way for a drop in Apple sales.
Although Huawei is under fire anywhere else in the world, it is only growing in China as it continues to outsell iPhones.
The Chinese market was dominated by the company from January to March this year, with 34% more sales than its rivals including Xiaomi, Oppo, and Apple. This makes it the only smartphone brand growing in the country despite the declining market.
Huawei shipped approximately 30 million phone units in three months, while Apple’s sales decreased by 30% or six and a half million phones – its worst decline since 2017.
China is not the country where iPhone is struggling. The California-based company dropped 17% of its global sales from 2018.
“The latest tension between the US and China raised the patriotism in Chinese consumers,” stated analyst Jusy Hong, confirming that the US government’s campaign against Huawei is the reason for its skyrocketing sales in China.
According to Jong, many Chinese companies are encouraging their employees to buy Huawei phones. This patriotism is also a form of support for Huawei’s Chief Financial Officer who was arrested in Canada late last year.
“There is a calling from my heart that I need to show support for Chinese brands, especially in the trade war climate,” said Wang Zhixin, who recently switched from an iPhone 7 to Huawei P30.
The United States is also convincing other countries not to push through with launches of new Huawei products and 5G wireless networks due to its criminal charges.
China is the largest smartphone market in the world and its people love Huawei due to its cutting edge technology which offers amazing cameras. Huawei is also relatively cheaper than iPhone models.
The decline of ZTE sales is also a factor in the rise of Huawei smartphones. The brand was not allowed by the US government to purchase American parts as a punishment for not honoring a deal. Because of this, its sales dropped nearly half, and almost all the profit went to Huawei.