Huawei Slips to No. 2 in Smartphones as Samsung Reclaims Lead

 

Huawei Technologies Co.’s reign at the top of the global smartphone market was short-lived, a sign that U.S. efforts to curb its supply chain might be starting to hurt the Chinese company.
The Shenzhen-based tech giant fell to second place in global smartphone shipments during the third quarter of the year, slipping back behind Samsung Electronics Co., according to International Data Corp., a market research firm. Huawei’s world-wide shipments fell by 22% in the third quarter, the largest year-over-year drop in smartphone shipments for the company on record, according to IDC. Huawei had climbed to No. 1 in the previous quarter.
The decline is an indication that the U.S. restrictions on sales of chips and other components to Huawei are taking a toll on Huawei’s consumer-gadget business, the company’s largest source of revenue. Virtually all component vendors without a license from the U.S. Commerce Department have been effectively blocked from selling parts to Huawei since Sept. 15, forcing the Chinese company to rely on stockpiled components to build its devices.