Its semiconductor design company Huawei, HiSilicon, overcame it Qualcomm and was done for the first time the "number one" chip supplier in China, as the COVID-19 has significantly affected the market smartphone of the country and has hit the American company.
Huawei's company, known as HiSilicon, released 22,21 million smartphone processors in the first quarter of 2020, according to a new report. CINNO Research. Huawei's HiSilicon has managed to increase its market share to 43,9%, from 24,3% in the first quarter of 2019.
CINNO Research, which monitors its semiconductor market China, did not disclose specifically data for Qualcomm or other retailers, but said the US company's market share fell to 32,8%, up from 48,1% last year.
HiSilicon designs chips under the brand name Kirin integrated into Huawei's smartphones. The semiconductors are made by Taiwan Semiconductor Manufacturing Company (TSMC).
HiSilicon's growth in China confirms that Huawei has been focusing more and more on its domestic market since it was blacklisted. USA last year. Due to this situation, Huawei cannot cooperate with American companies and have access in American technology (eg operating system Android Google). This blockade may not have been significant for China, because its services there Google, such as Gmail, are already banned. But it did have a significant effect on them customers of Huawei from others countries, based on these services.
Huawei's share of the smartphone market has increased. In the first quarter of 2020, smartphone sales increased by 6% compared to last year, according to a report by Counterpoint Research. Huawei is also trying to reduce its dependence on American components and smartphone chips are among the most important elements.
The company's growth in China has increased its share of the smartphone processor market. However, the development of the Chinese company has burdened other domestic competitors, who are some of them Qualcomm's core customers.
In August, Qualcomm's CEO, Steve Mollenkopf, had stated that Huawei's focus on market China is ultimately hurting the American company.
Qualcomm sells chips to Huawei's domestic rivals, such as Xiaomi and Oppo. Both companies saw their sales fall in 2019.
Of course, the overall smartphone market weakened further after its outbreak coronavirus in most areas. In China, mobile phone sales have fallen sharply in recent months.