Chinese Ditching Their iPhones Over Huawei Ban
The US vs China trade war has boiled over into the tech sector in a big way. ZTE and Huawei are taking fire from the American government and Google respectively. The latest ban of Huawei devices from the Android platform has left a bad taste in the mouth of Chinese consumers. In fact, CNBC reports that many Chinese are ditching their iPhones to purchase Huawei devices and show support for their native brand.
The ban from Google blocking Huawei from accessing the Android OS isn’t the only action taken by the US against the Chinese company. President Trump also blacklisted the phone manufacturer from being able to purchase US made parts and components. It was this action that began to tip the scale in China towards its own tech firm. Chinese ditching their iPhones in favor of Huawei devices goes much deeper than simple anger towards the US. It is a way for the Chinese to show pride in their domestic products.
Chinese Companies Offering Huawei Discounts
Wang Zhixin has used the Apple iPhone for nearly a decade. However, when it came time to upgrade from the iPhone 7 he most recently had, he chose the Huawei P30. He told the South China Morning Post “there is a calling from my heart that I need to show support for Chinese brands, especially in the trade war climate.” Wang is the manager at one of China’s largest solar product manufacturers. He is just one of many Chinese ditching their iPhones as a way to protest the US vs China trade war.
Other companies are coming together to support Huawei, by offering discounts to employees who purchase their products. Sam Li works for a state owned telecom company in Beijing, and he says “it’s kind of embarrassing to pull an iPhone out of your pocket nowadays when all the company executives use Huawei.” Li also noted that the company offered a sizable discount to employees making the switch to the native brand. Domestic companies providing incentives for the Chinese to ditch their iPhones may help the company survive the US vs China trade war.
US vs China Trade War Bad For Apple
While Apple isn’t really the cause of the problems between the US and China, the tech giant finds itself squarely in the crosshairs of consumers who are angry with President Trump. Apple has held a 9% market share in China during 2018. However, that dropped to 7% in the first quarter of 2019. This is attributed to the Chinese ditching their iPhones in response to the US vs China trade war. If relationships between the two countries do not improve soon, Apple could see major revenue losses over the next 12 months as more and more consumers move to other products. China has the largest population in the world, and therefore the largest single market for mobile devices.
Can Huawei Really Survive On Chinese Sympathy?
While there is a growing number of Chinese ditching their iPhones for Huawei devices, the company is certain to feel the pain of revenue loss. Being banned from Android, which is one of the two mobile OS that dominate the global market, has effectively cut them out of the US market. It may extend even further than that, as Android is popular in all parts of the globe. Huawei announced recently that they’ve been developing their Hongmeng OS since 2012 and it is already being implemented on devices within China. While it is doubtful the OS can actually compete with iOS and Android, it might be enough for them to maintain market share in China. The US vs China trade war has had detrimental effects on both countries. Hopefully the leadership can come together and find a solution that benefits all involved.