US Huawei ban will have a big impact in Europe
Huawei’s ban by the US government and the US companies that are impacted will have a knock-on effect on up to 27% of European households. The recent developments—if the decision remains as is—will have a massive impact on the smartphone market, not only potentially affecting sales of Huawei devices but also sales of hardware and software providers, including Google. Recently, Google announced it will follow the US administration office’s order to ban the Chinese group, meaning that Huawei smartphones will not get upcoming updates for the Android operating system and future Huawei users will not be able to use Google apps such as Google Play. Currently, Ampere’s consumer research shows that over a quarter (27%) of European online households across 10 markets surveyed have a Huawei smartphone. Huawei is the third largest provider of smartphones behind Samsung and Apple.
Of the ten markets surveyed, Italy has the highest uptake of Huawei devices at 50% of Italian broadband households. The second and third most successful markets for Huawei are Poland and Spain, in terms of penetration of households. Nonetheless, in terms of absolute numbers, taking into consideration the size of each market, Germany and France are the two most important markets for Huawei after Italy. Germany accounts for 17% of all Huawei smartphone households across the ten countries and France for 14%. If Huawei remains on the US blacklist, a big portion of European households will be affected, ultimately forcing them to choose between the smartphone brand and Google & its ecosystem.