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    Samsung’s smartphone business to benefit from Huawei’s ban by the US

    Business
    By 

    Last updated: May 19th, 2020 at 10:02 UTC+02:00

    Samsung is still the world's largest smartphone vendor, according to the latest market research numbers. However, it was facing fierce competition from the second-largest smartphone brand, Huawei. A few days ago, the US extended its ban on Huawei and its subsidiaries over fears related to data security. This decision will likely prove to be a booster for Samsung's smartphone business.

    Analysts and industry insiders say that the ban on the Chinese tech giant will help Samsung recover from the COVID-19 slump sooner than expected. Since Huawei can't use Google apps on its smartphones, and probably won't be able to get a supply of SoCs from TSMC, it won't be able to sell smartphones outside of China. Samsung can gain market share from Huawei in Europe as the Chinese brand was its direct competitor.

    Huawei was barred by the US from using GMS (Google Mobile Services) on its new smartphones since 2019, which resulted in a drop in sales. However, the fall will be even higher this year as the company won't be able to produce smartphones without processors from firms like TSMC. This will definitely boost Samsung's presence in Europe and the UK.

    Lee Kyu-ha, Analyst at NH Investment & Securities, said, “Last year, Huawei's market share went down because it could not use Google Mobile Services on its products amid the U.S-China trade war, but this time, it might face a production problem. As Huawei sees damage, Samsung's smartphone business can expand.

    While sanctions against Huawei is excellent news for Samsung's smartphone business, it could hurt the company's chipset and display businesses. Samsung Display supplies OLED screens for Huawei phones, while the chipset business was poised to become a 5G modem supplier for Huawei's entry-level and mid-range smartphones. Samsung also sells camera sensors for some Huawei and Honor phones.

    Via Business HuaweiUSA

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