Huawei still number two smartphone seller despite US sanctions

A Huawei device is pictured in the Manhattan borough of New York, New York, U.S., July 22, 2019. (Reuters)
Updated 31 July 2019

Huawei still number two smartphone seller despite US sanctions

  • Huawei managed to boost its sales even as the overall market declined

WASHINGTON: Huawei remained the number two global smartphone vendor in the past quarter despite tough US sanctions imposed on the Chinese technology giant, market trackers said Wednesday.
The Chinese firm managed to boost its sales even as the overall market declined, remaining on the heels of sector leader Samsung and ahead of US-based Apple.
According to Strategy Analytics, overall global smartphone sales fell 2.6 percent to 341 million units in the April-June period, but showed signs of stabilizing after several quarters of declines.
Samsung increased its market share to 22 percent, helped by a seven percent rise in handset sales, with growth seen in the mid-range and entry segments. The South Korean giant stayed ahead of Huawei, which was at 17 percent, and Apple at 11 percent of the market.
“Huawei surprised everyone and grew its global smartphone shipments by eight percent annually,” said Strategy Analytics executive director Neil Mawston.
“Huawei surged at home in China during the quarter, as the firm sought to offset regulatory uncertainty in other major regions such as North America and Western Europe.”
The research firm estimated that Apple, which released its results this week without details on unit shipments, saw an eight percent drop in iPhone sales in the quarter.
“Apple is stabilizing in China due to price adjustments and buoyant trade-ins, but other major markets such as India and Europe remain challenging for the expensive iPhone,” said Woody Oh, director at Strategy Analytics.
A separate report by Counterpoint Research offered similar findings, showing Samsung, Huawei and Apple in the three top spots as overall sales fell.
Analyst Tarun Pathak at Counterpoint said however the US ban on technology sales to Huawei will have an impact in the coming months.
“The effect of the ban did not translate into falling shipments during this quarter, which will not be the case in the future,” Pathak said.
“In the coming quarters, Huawei is likely to be aggressive in its home market and register some growth there, but it will not be enough to offset the decline in its overseas shipments. This will further lead to the decline of the overall smartphone market in 2019.”
The surveys indicated Chinese makers Xiaomi and Oppo holding the fourth and fifth spots, largely due to sales in their home markets.
According to Counterpoint, the combined global smartphone market share of Chinese majors Huawei, Oppo, Vivo, Xiaomi, and Realme reached 42 percent, the highest it has ever been.


France ready to take Trump’s tariff threat to WTO

Updated 08 December 2019

France ready to take Trump’s tariff threat to WTO

  • Macron government will discuss a global digital tax with Washington at the OECD, says finance minister

PARIS: France is ready to go to the World Trade Organization to challenge US President Donald Trump’s threat to put tariffs on French goods in a row over a French tax on internet companies, its finance minister said on Sunday.

“We are ready to take this to an international court, notably the WTO, because the national tax on digital companies touches US companies in the same way as EU or French companies or Chinese. It is not discriminatory,” Finance Minister Bruno Le Maire told France 3 television. Paris has long complained about US digital companies not paying enough tax on revenues earned in France.

In July, the French government decided to apply a 3 percent levy on revenue from digital services earned in France by firms with more than €25 million in French revenue and €750 million ($845 million) worldwide. It is due to kick in retroactively from the start of 2019.

Washington is threatening to retaliate with heavy duties on imports of French cheeses and luxury handbags, but France and the EU say they are ready to retaliate in turn if Trump carries out the threat. Le Maire said France was willing to discuss a global digital tax with the US at the Organization for Economic Cooperation and Development (OECD), but that such a tax could not be optional for internet companies.

“If there is agreement at the OECD, all the better, then we will finally have a global digital tax. If there is no agreement at OECD level, we will restart talks at EU level,” Le Maire said.

He added that new EU Commissioner for Economy Paolo Gentiloni had already proposed to restart such talks.

France pushed ahead with its digital tax after EU member states, under the previous executive European Commission, failed to agree on a levy valid across the bloc after opposition from Ireland, Denmark, Sweden and Finland.

The new European Commission assumed office on Dec. 1.