After the ban on Huawei by the Trump administration in the United States which bans US-based company from doing business with the Chinese telecom giant, Huawei tried to put on a strong face. However, the company’s business is looking bleak at this moment and the uncertainty about its future is severely affecting the company’s sales.
The UK-based trade-in site Music Magpie revealed that it saw a huge increase in Huawei trade-ins during the 24 hours that followed Google’s announcement of suspending business ties with the company on Sunday. The site reported a surge of 154 percent for the company’s smartphones and, by 1 PM BST on Monday, Huawei devices were being sold more than any other brand.
A report from ADSLZone claims that within the space of just 36 hours, over 10,000 Huawei orders were canceled on Amazon’s Spanish website. Moreover, the mega Prime Day campaign that Huawei was planning with Amazon has reportedly been canceled. The company has also suspended all digital as well as retail advertising campaigns in Spain, including those focused on its latest flagship, the P30 Pro.
El Pais reported that sales in local department stores such as El Corte Inglés and Mediamarkt have fallen between 50 percent and 70 percent in Spain since the news broke on Sunday. Further, Spanish customers have returned over 15,000 Huawei devices to Amazon over the past few days.
In the Asian markets, Japan’s Softbank and KDDI have postponed the launch of numerous Huawei devices, including the P30 Lite that was set to go on sale this Friday, May 24th. Like Vodafone and EE in the UK, the reason for this decision is the uncertainty surrounding future device support.
It’s pretty evident that these recent developments are already starting to affect Huawei’s business. Even when the situation improves, the negative impact will likely ease off, but the company will undoubtedly come out with a severely damaged reputation.
Read More: Huawei reported to have already stockpiled 12 months of parts ahead of the US ban
After the ban on Chinese technology giant, many companies including Google, Intel, Qualcomm, and ARM among others have suspended business with Huawei in order to comply with the order from the US government. However, the US recently eased some aspects of the ban by 90 days, allowing Android OS updates to be certified on existing Huawei and Honor phones.
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