China’s Huawei, hit by crippling United States sanctions, could see shipments decline by as much as a quarter this year and faces the possibility that its smartphones will disappear from international markets, analysts said.
Smartphone shipments at Huawei, the world’s second-largest smartphone maker by volume, could tumble between 4% and 24% in 2019 if the ban stays put, according to Fubon Research and Strategy Analytics.
Several experts said they expect Huawei’s shipments to slide over the next six months but declined to give a hard estimate due to uncertainties surrounding the ban.
The US Commerce Department blocked Huawei from buying US goods last week amid its escalating trade spat with China.
The ban applies to goods and services with 25% or more of US-originated technology or materials, and may, therefore, affect non-American firms.
Tech companies including Google and SoftBank Group-owned chip designer ARM have said they will cease supplies and updates to Huawei.
“Huawei may be wiped out of the Western European smartphone market next year if it loses access to Google,” said Linda Sui, director of wireless smartphone strategies at Strategy Analytics.
She predicts Huawei handset shipments will decline another 23% next year but believes the company could survive on the sheer size of the China market.