Huawei's European Handset Sales Tumbled in June, Kantar Says

(Bloomberg) -- Huawei Technologies Co.’s European smartphone sales slumped last month, according to market research firm Kantar, after a U.S. component supply ban on the Chinese manufacturer threatened its access to crucial handset software.

Huawei lost about a third of its market share between May and June across the U.K., France, Spain, Germany and Italy, the Kantar data showed.

“Early indications are that Samsung and Xiaomi are the key beneficiaries, with Apple seeing a smaller uptick in sales as a result,” Kantar Consumer Insights Director Dominic Sunnebo wrote in an emailed statement.

The White House added Huawei to its Entity List on May 20, jeopardizing the technology giant’s access to crucial U.S. technology such as Alphabet Inc.’s Android operating system and Qualcomm Inc.’s microchips. Huawei’s ultimate status remains unclear as trade talks between Washington and Beijing continue, although its U.S. suppliers are still able to apply for licenses.

Although Huawei phones currently operate as normal, company founder Ren Zhengfei has said he expects the U.S. sanctions to curtail the company’s revenue by about $30 billion over the coming two years.

Sunnebo said there are signs Huawei owners are putting off upgrades as they wait for more clarity on the situation. If the dispute between Washington and Beijing is resolved, “it might mean that the majority of sales are delayed rather than lost to competitors,” he wrote.

To contact the reporter on this story: Thomas Seal in London at tseal@bloomberg.net

To contact the editors responsible for this story: Rebecca Penty at rpenty@bloomberg.net, Thomas Pfeiffer, Giles Turner

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