Huawei became the world's top smartphone seller last quarter, overtaking Samsung for the first time ever, according to an independent market research report released Thursday.
The restrictions have damaged Huawei's worldwide sales, as domestic shipments were down 27% in the second quarter.
Huawei overtook Samsung since its shipments only declined by five percent to 55.8 million, while Samsung's declined by 30 percent to 53.7 million. But the company is a dominant player in China, as it now sells more than 70% of its phones in mainland China, reports Canalys. For instance, smartphone shipments were down 48% in India during Q2 - an important market for Samsung.
"Strength in China alone will not be enough to sustain Huawei at the top once the global economy starts to recover", Mo said.
"China and USA trade war is creating a higher barrier for us", said Richard Yu, CEO of Huawei's consumer division. "It needs to convince them to invest, and will broadcast the message of its success far and wide in the coming months", said Jia, while highlighting that its prospects might not seem very upbeat as its major channel partners in key regions such as Europe are increasingly wary of using Huawei devices.
Huawei's global smartphone and telecom gear business continues to suffer the fallout from U.S. sanctions that cut the company off from key American tech and supplies.
The report said that Huawei's shipments came even after the United States restrictions that have stifled business outside mainland China.
Samsung said that as Covid-19 spread and caused closures and slowdowns at stores and production sites, the firm responded to these challenges through its "extensive global supply chain" to minimise the impact of the pandemic. (NASDAQ: AAPL) has led the market in a quarter.
Samsung attributed the rise in operating profit in Q2 to demand for memory chips and appliances, as well as a "one-off gain" at its display panel business.