tech2 News StaffJun 04, 2019 15:03:51 IST
Huawei is currently the world’s second largest smartphone manufacturer but due to the company's ban in the US, this status that the Chinese company's attained may soon take a major hit.
As per a report by 9To5Google, reputed TF International Securities analyst Ming-Chi Kuo has penned down a “critical issues and scenario analysis” based on discussions with investors over the past couple of weeks, suggesting that Huawei needs to find several workarounds to their current problems and fast.
The Chinese tech giant is currently developing its very own operating system after being banned from using products developed by US companies and Kuo says that the sooner the new OS is ready, the more damage the company will be able to avert.
Ming-Chi Kuo says Huawei’s shipments this year could drop to less than 180 million units from 270 million units if the company doesn’t launch its operating system in 2019.
Furthermore, there’s the added risk of this operating system not being able to replace Android, in which case the drop is very likely.
Huawei's head of consumer business, Richard Yu recently stated that the company's in-house operating system may not be ready for a global release before 2020, which implies that the dip in sales volume may be inevitable.
However, the analyst does recommend Huawei to plan in the long term and ensure that the company's new operating system isn't just a temporary alternative to Android.
Losing brand trust
The analyst also stated that “losing brand trust due to unstable shipments in the long term” is the biggest issue facing Huawei right now.
"It’s not easy to save brand trust if it’s gone. Even if the US cancels the export ban, customers may not turn back and buy Huawei products," says Kuo.
Both Samsung and Apple, on the other hand, are likely to become primary benefactors of Huawei’s struggle. Kuo says Samsung sales could increase from 290 million units this year to 300 million or 320 million units. Apple's iPhone sales could also return to approximately 200 million units.
Read more on the Huawei banning saga:
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