Huawei's biggest task will be to rebuild brand trust, says analyst Ming-Chi Kuo

Samsung and Apple will likely become the primary benefactors of Huawei’s struggles in the US.

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.

Huaweis biggest task will be to rebuild brand trust, says analyst Ming-Chi Kuo

Image: Reuters

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.

The Huawei P30 Pro. Image: Omkar Godambe

The Huawei P30 Pro. Image: Omkar Godambe

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:

Global smartphone sales in 2019 to see a 3.1 percent dip due to Huawei ban: Canalys

US prosecutors ask judge to reject Huawei's motion for seeking information on its lead defense lawyer

Huawei is now facing lawsuit in the United States for corporate espionage

Huawei could possibly launch the Mate 30-series with Kirin 985, HongMeng OS

Huawei's Android license has been revoked: Here's what Huawei has to say about it

Huawei's Android license revoked: What it means for existing Huawei and Honor phone users

Intel and Qualcomm join Google in cutting off ties with Huawei following Trump ban

Huawei accuses US of bullying, says working with Google to respond to ban

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