Huawei’s decline is the worst thing that could’ve happened to Samsung

HUAWEI has been topic to a US commerce ban for over 4 years now, ensuing within the firm shedding entry to key {hardware} suppliers, Google providers, 5G connectivity (till just lately), and extra.

One main side-effect is that HUAWEI has tumbled from its quantity two place globally. The sanctions and HUAWEI’s subsequent decline haven’t solely affected the Chinese language model, although. No matter how you are feeling in regards to the ban, it’s additionally adversely affected the remainder of the trade’s high-end choices. The shortage of fierce competitors has allowed main gamers like Samsung to grow to be complacent.

HUAWEI was Samsung’s greatest rival previous to the US commerce ban, the 2 corporations duked it out throughout a variety of high-end merchandise. Samsung’s Galaxy S collection was pitted in opposition to the HUAWEI P collection, and the Galaxy Word vary slugged it out with the Mate collection. The 2 corporations have been additionally a part of the primary wave of foldable telephones again in 2019.

I’d go as far as to say that HUAWEI was the extra thrilling flagship cellphone producer previous to US sanctions. 2018’s P20 Professional was a extra revolutionary, feature-packed handset than the Galaxy S9 and S9 Plus. I nonetheless keep that the Mate 20 Professional, with its versatile triple digicam and speedy charging, was extra compelling than the conservative Galaxy Word 9. 

Quick-forward to 2024, and it seems like Samsung has slacked off with no full-strength HUAWEI to maintain it trustworthy. That is regardless of our warning again in 2019 that the Korean model can’t afford to be complacent. The Galaxy S24 collection seems like a retread of the Galaxy S23 line, which in flip was a small improve over the S22 vary. Samsung’s latest foldables haven’t modified a lot since 2021, excluding the Galaxy Z Flip 5. You actually need to marvel what the Galaxy maker could be doing if it needed to take care of a no-compromise P60 Professional or Mate X5 foldable.

Talking of the Mate X5, it looks like HUAWEI’s affect remains to be felt by Samsung even when the Chinese language model isn’t able to significantly problem it. A Korean outlet reported that Samsung staff had really reverse-engineered the Mate X5 with a view to find out how HUAWEI squeezed an enormous battery into such a slim kind issue.

It’s not simply Samsung that’s been adversely affected by HUAWEI’s downturn, however the high-end Android panorama too. HUAWEI loved sharp development within the years previous to the commerce ban, grabbing second place from Apple and constructing an enormous hole between it and the iPhone maker. The producer even set a objective to cross Samsung for primary standing.

Then the commerce ban occurred, and HUAWEI’s market share slid, albeit briefly reaching primary standing because of the timing of Covid. This leaves us with the present state of affairs; Apple surpassed Samsung for the primary time in a decade to be the highest smartphone maker of 2023.

Now, there are vital causes for Apple’s climb up the charts, equivalent to a powerful US market pushed by younger folks and iMessage. However HUAWEI was clearly on an upward trajectory and pulling away from Apple earlier than the sanctions. That doesn’t imply the Chinese language model would’ve been a powerful primary in 2024, however it might’ve definitely been a stiff problem for Apple to beat.

In any case, this was the primary smartphone model to supply many options that at the moment are thought-about flagship staples. Evening mode, AI silicon in a smartphone chipset, a 10x digicam in a standard kind issue, and reverse wi-fi charging, HUAWEI supplied all that years in the past. The corporate was additionally a pioneer of cell digicam high quality, as the primary to supply right this moment’s versatile triple rear digicam setups, a periscope digicam, an RYYB digicam sensor for improved low-light efficiency, and a monochrome digicam. It’s laborious to argue that the Android ecosystem wouldn’t be considerably more healthy if HUAWEI was nonetheless a significant world participant.

Don’t get me mistaken, high-end Android telephones have improved in some ways lately. Samsung and Google are main the pack with seven years of software program updates, OPPO and Xiaomi ship cutting-edge digicam experiences, and Sony continues to supply an unparalleled method to enthusiast-level images. 

Then there are the precise improvements we’ve seen from flagship Android telephones in the previous couple of years. A digicam sensor arms race culminated in Xiaomi and Sony’s one-inch IMX989, Google debuted generative AI enhancing on the Pixel 8 collection, Samsung’s ever-expanding Good Lock modules introduced an unprecedented stage of intuitive customization, and BBK manufacturers supply batteries that may last more than ever. We’ve additionally witnessed the evolution of foldable telephones to right this moment’s almost crease-free, waterproof telephones.

Regardless of all these improvements, rival producers have had various levels of success in changing HUAWEI in shops and with carriers.

Xiaomi was arguably the most important beneficiary of this case. The corporate is constantly the third-most widespread model in world shipments, primarily because of the success of its funds telephones. Nevertheless, based on Counterpoint Analysis, Xiaomi remains to be behind HUAWEI within the premium ($600 and better) section. Xiaomi accounted for simply 2% of all premium telephones shipped in 2023 versus HUAWEI’s 5% (primarily as a result of HUAWEI’s efficiency in China). That is regardless of Xiaomi’s makes an attempt to show mainline flagships into full-blown premium choices and the introduction of the hyper-premium Extremely collection.

OPPO and vivo are two different manufacturers that ought to’ve benefited from this case. Certainly, OPPO was in fourth place globally for 2023 shipments. Each manufacturers supply some engaging premium telephones too, however vivo’s clumsy world launch methods and OPPO’s European gross sales ban imply customers exterior China have been disadvantaged of many strong high-end decisions. It additionally doesn’t assist that these corporations solely supply their mid-range telephones in some markets.

One beneficiary that’s largely gone underneath the radar till now has been HONOR. The previous HUAWEI sub-brand was spun off in 2020, and it’s typically caught near the HUAWEI components by way of software program and {hardware}. The corporate hasn’t damaged into the highest 5 globally. Nonetheless, it’s made main strides within the likes of China (second in 2023), South Africa (second in Q3 2023), and a number of other Center Jap international locations (fifth in Kuwait, Saudi Arabia, UAE). But it surely’s far too early to inform whether or not HONOR can maintain this development and really choose up the place HUAWEI left off.

Setting apart the arguments for and in opposition to a HUAWEI ban, the sanctions have sadly contributed to a complacent Samsung. It’s additionally evident that different flagship cellphone manufacturers haven’t fairly managed to suit into HUAWEI’s costly sneakers.

This in flip has opened the door for Apple to seize the primary spot globally. Let’s hope Apple’s efficiency forces Samsung and different producers to tug out all of the stops and make flagship telephones thrilling once more. As a result of regardless of the corporate’s spectacular tenacity in robust occasions, HUAWEI positive as hell isn’t able to problem Apple anymore.