The market right now is Rise concern for Chinese phones censorship and transferring usage data, as more and more countries is report for the built in censorship tool, despite the manufacturer keep told market their phones does not censor communications. As more phones began to have software that could detect and censor terms that are not tolerated by the Chinese government to allow them to send and spread, which is not the secret for out of China, it has been practiced for a long period of time. Despite manufacturers keep telling this capability had been switched off, but everyone is fully aware it can be remotely activated at any time, which pose a potential privacy concern.
Made in China phones capture the market share, due to their low price, it will continue to capture the market, but the market needs to be aware of the trade off, that is what the market right now is concerned about. Since the world outside of China operates in completely different ways, what has been accepted in China, does not mean it accepts any place else in the world.
Chinese phone transferring encrypted phone usage data is another area most users may find breaching privacy. For instance, a brand of phone is being found transferring encrypted phone usage data to a server in Singapore. Since COVID-19 pandemic, China has had tensions with a lot of countries, for a range of issues. Huawei Market share in 2021 is now behind Xiaomi, Oppo, VIVO. The market report and findings for the Chinese phone with those additional features and functions may raise concern for the potential buyer, unless the price is the only factor they are willing to trade off for privacy, are you? One thing worth mentioning when we saw the market share for the phone, will notice Huawei is shrinking from 2020Q2 20% to 2021Q1 for merely 4%. The impact of what the US sanction did impacted Huawei.
As everyone knows, before COVID-19 pandemic, Huawei was positioned as the world winner for the 5G networks, then it became a US sanction vendor, and banned access to certain high tech supply that was required for the final product assembly. The market is operated in a very dynamic way, at the brink of just 18 months, the market number 2 mobile phone vendor is now in 5th. No one knows what will be next, when the phone is no longer running Android, and powered by their own invented operating system. Without access to the high tech and market accepted operating system, it for sure will be difficult to compete. Whether or not the rest of the Chinese phones ship out from China already with the censor feature turned off, the potential risk for sure will make the impact for users who want a new or replacement phone to think twice.
Most of the country is shifting from COVID-19 pandemic to endemic, recovery to reset. 5G networks once again are important technologies that promise so many life changing possibilities, who can seize the opportunity will ride the post 5G networks era. We see the market Huawei is shrinking for consumer mobile phones, but we see more Chinese phones in the market to fill that gap, whether whatever happens in the market can suspend Chinese phones dominance in the near future? It is something we expect to see for the next few years.
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