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Huawei may exceed market expectations for its smartphone business in 2019

Chinese tech giant Huawei may exceed market expectations for its smartphone business as US President Donald Trump softened his stance against the restrictions imposed on the former.
Huawei may exceed market expectations for its smartphone business in 2019
Huawei's first flagship phone of 2019, the P30 Pro

Huawei is expected to ship 260 million smartphone units in 2019

Huawei is exIts chair Liang Hua remained optimistic about the overall business operations of Huawei, even noting revenues for the first six months of 2019 were up.

Huawei's entire businesses ran smoothly, Liang Hua said.

Analyst Gui Mianghao of Hong Kong-based TF International Securities revised his forecast for Huawei to even more bullish projection as he sees the company hit 260 million units in terms of smartphone shipments, defeating the pre-backlist forecast of 250 million units.

See also: Trump lifts ban on Huawei? Now allowed to buy from US suppliers

This positive forecast, however, still depends on Huawei's capacity to restore its business deal with US-based tech leader Google, Guo added. 

If this would not happen, shipments may fall to 230 million units. But the number still looks good compared to what was anticipated after the US government made the bold move to ban Huawei. 

In May, Trump declared a national emergency against potential threats to information and communications technology and services, which affected Huawei. 

Its Department of Commerce followed suit as it included Huawei on a blacklist, hindering the firm to do business with American companies. It also put Huawei on its "Entity List", signaling the need for US firms to secure a special license to sell products to the Chinese company. 

Aside from the backtrack from Trump, Guo also said Huawei would bank on the intense marketing coupled with domestic consumers rallying against the US pressure. Negative moves from the US government lifted Huawei's market share in China to over 50 percent.

The analyst also expects Huawei to be back on pace to challenge Samsung's crown as the biggest global smartphone vendor.

Source: Forbes
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