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Here’s Why Huawei’s Smartphone Shipments Might Fall This Year

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Huawei smartphone sales set to spiral downwards

According to a Bloomberg report, China (FXI) technology giant Huawei is estimating a 40.0% to 60.0% drop in global smartphone shipments. This revised estimate comes after President Donald Trump’s ban on the use of Huawei technology.

Huawei is also considering retracting its latest smartphone model, the Honor 20, from overseas markets, according to Bloomberg. The device will start selling in European markets on June 21. Huawei will initially monitor shipment sales and pull the smartphone from markets if sales are lukewarm.

The Honor 20 was one of the highly anticipated smartphones this year and was priced at $500 per device.

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Huawei accused of espionage

The US government has accused Huawei of espionage and blacklisted the company from dealing with domestic business. In late January, the US Department of Justice unsealed indictments that included 23 cases of alleged intellectual property theft and the alleged evasion of US sanctions against Iran.

The US government has suspected Huawei of espionage activities for a while now. Though Huawei is one of the market leaders in the smartphone space, it has practically no share in the United States.

With this ban, Huawei smartphones will be unable to power its devices with Google’s (GOOGL) Android updates. Users will also lose access to the Play Store and popular applications like YouTube. It is unlikely that Huawei customers will look to less secure app stores as an alternative.

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