Huawei Technologies has encountered severe challenges following its blacklisting by the US government, leading to a significant drop in its smartphone business. Richard Yu, chairman of Huawei’s consumer business group, revealed that annual smartphone shipments plunged to about 20 million units due to tightened export restrictions on semiconductors. In 2022, Huawei’s shipments totaled only 28.1 million units, a stark contrast to the over 240 million units shipped in 2019 before the restrictions. These difficulties have severely impacted Huawei, once a leader in the global smartphone market.
Despite these setbacks, Huawei made a notable comeback in the 5G smartphone market last August, unveiling a new handset with a 7-nanometer processor. This breakthrough, however, has drawn intense scrutiny from Washington. Huawei is now focusing on using domestically produced chips and expanding its research and development in China. The company expects to ship over 50 million handsets in China this year, reclaiming a significant market share. Nonetheless, ongoing US restrictions continue to pose challenges for Huawei’s global operations.