Although Huawei’s US trade ban hasn’t yet affected the company’s ability to deliver existing smartphones to customers, the uncertainty surrounding the current situation has led to a drop in demand for the brand. This is especially noticeable in one of Huawei’s biggest international markets.
According to a report by WinFuture, Huawei’s smartphone sales in Germany dropped rather drastically in the weeks following the US trade ban’s implementation. Specifically, it’s said Huawei accounted for just 6% of smartphones sold throughout the final seven days of May in the market. For comparison, the brand’s local market share sat at a considerable 26% at the beginning of the month.
Unlike the US where unlocked smartphones only account for a small percentage of sales, shipments of these in Germany actually account for a rather large portion. And according to industry sources, Huawei sales at major retailers Saturn and MediaMarkt have each declined around 50% in recent weeks. Similarly, shipments of Honor devices are said to have dropped around 40%.
In scenarios where demand is weak, retailers and smartphone manufacturers typically cut prices slightly in order to boost interest. But in this case, retailers and carriers are reluctant to slash prices because many of the devices in stock were purchased at the usual prices before the trade ban was announced, meaning that any drops could hurt profitability.