Samsung only has to gain from the US sanctions placed against Huawei

Samsung only has to gain from the US sanctions placed against Huawei

The world’s largest smartphone company in Samsung has in recent times been going toe to toe with Huawei to make sure that it continues to claim the top spot in the mobile phone world. And now, with the US sanctions in place against the Korean manufacturer for the second year running, one would have to imagine that Samsung is only to gain from this.

If you didn’t already known, the US proceeded on to extend the ban that it placed on Huawei as well as its subsidiaries over various security concerns. While Huawei has always maintained the image that all the allegations placed against it are fake, the company still is facing a very hard time at the hands of the US. While the initial ban took place last year, now, recently, the US Commerce Department introduced new sanctions which effectively cut off chip supply from TSMC to Huawei.

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Coming back to the initial ban – last year in 2019, Huawei lost Google services support and now, with the latest implications in mind, the company has also lost its major chip supplier as well. This could be great news for Samsung, as the market lost by Huawei could turn out to be footing gained by the Korean manufacturer. Of course you wouldn’t imagine this to be applicable all over the world – especially in a region such as China, this may though turn out to be the case in European countries.

In accordance with what an analyst from NH Investment & Securities had to say : “Last year, Huawei’s market share went down because it could not use Google Mobile Services on its products amid the US-China trade war, but this time, it might face a production problem. As Huawei sees damage, Samsung’s smartphone business can expand.”

But of course it’s important to note here that Samsung has also made a name for itself for being a major supplier of smartphone components like image sensors, OLED display and soon – also 5G modems for budget as well as mid-range smartphones. And so with these factors in mind, even if the company does gain some market share at the expense of Huawei, it could still lose out on orders that Huawei places with the company.


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