202 In a surprising turn of events, Huawei, the once-dominant smartphone maker, has made a remarkable comeback in the Chinese market, as its smartphone sales grew by an impressive 37% year on year, according to a report from Counterpoint Research. This resurgence has positioned Huawei within striking distance of the top five smartphone manufacturers in China, driven by the successful launch of its Mate 60 Pro featuring advanced 7-nanometer chips and 5G connectivity. Huawei’s comeback is notable as it was severely impacted by U.S. sanctions in 2019, which cut off the company from crucial technologies, particularly semiconductors. The company’s proprietary Kirin chips were manufactured by Taiwan’s TSMC, but U.S. restrictions prevented TSMC from supplying Huawei, hampering its access to vital technology for 5G connectivity. In response to these challenges, Huawei introduced the Mate 60 Pro, a phone equipped with the advanced 7-nanometer chip and 5G connectivity, technologies that U.S. sanctions aimed to prevent the company from acquiring. This move garnered significant interest among Chinese consumers, with Huawei selling 1.6 million units of the Mate 60 Pro in the first six weeks of its release. The Mate 60 Pro’s success has contributed significantly to Huawei’s growth. Ivan Lam, a senior analyst at Counterpoint Research, noted, “It has made a huge splash in the market, contributing significantly to Huawei’s smartphone sales growth in the third quarter.” Huawei’s revival presents new competition for Apple in China, particularly in the high-end smartphone segment, where the two companies have traditionally vied for dominance. Additionally, if Huawei chooses to integrate its new Kirin chipset into mid-to-lower-end phones, it could challenge other market players and potentially re-enter the top five rankings in the Chinese market. While China’s smartphone market experienced a 14% decline in shipments in 2022, primarily due to COVID-19 pandemic restrictions and subdued consumer spending, the third quarter of 2023 showed signs of recovery, with smartphone shipments down only 5% year on year. Analysts suggest that the worst may be over, and gradual demand recovery is expected. As Huawei bounces back, it poses a renewed threat to the established smartphone market leaders in China, reshaping the competitive landscape in this vital market. You Might Be Interested In Airbnb Partners with ChargePoint to Support Growing Demand for EV Chargers Federal Reserve Poised to Reduce Rates, Potentially Boosting Biden’s Prospects Ping An Insurance Group Sees 22.8% Decline in 2023 Net Profit UAE Removed from Financial Crime Watch List, Signifying Victory for the Nation U.S. Cities with Biggest Population Declines in 2023 Hyundai and Kia’s Financing Arm Settles Charges of Illegally Repossessing Vehicles Belonging to Service Members