This move is likely to hurt one of the top tech companies in the US – Apple (AAPL). Apple derives close to 20% of its revenue from China, a significant portion of which comes from iPhone sales. The Asian country is also the company’s third largest market after the Americas and Europe.
Apple already faces tough competition in China from Huawei, Xiaomi and other firms and if Chinese companies continue to persuade their employees to favor local brands, it will negatively impact iPhone sales. In order to tackle this competition and stay ahead, Apple will have to come up with the latest technologies at a faster rate for its products.
Countries that have banned Huawei from their 5G plans
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Despite the challenges it has faced, Huawei has a bright spot in terms of its smartphone shipments. The company shipped over 200 million units in 2018, marking a new record. This includes 65 million units from its Nova series, 16 million units from its P20 series and 5 million units from its Mate 20 series. The company has a global market share of 14.6%.
Huawei has also indicated that it has signed deals for the rollout of 5G technology in several countries in spite of the bans it faces in many Western countries such as the US. Meanwhile, Apple’s stock fell to a new yearly low on Monday as it stood at $148.30 at market open.