Samsung smartphone recovery overshadowed by semiconductor gloom

Samsung’s Q3 2019 numbers show improved performance in the smartphone business, but the semiconductor sector remains weak, which contributed to the 56% decrease in corporate level operating profit.

Overall the company has delivered sequential improvement over Q2. Total revenues stood at KRW 62 trillion ($53 billion), representing a 10% QoQ improvement despite being 5% lower than the same quarter a year ago. The corporate level operating profit of KRW 7.78 trillion ($6.7 billion) was 56% lower than a year ago, albeit registering a growth of 18% over the previous quarter.

The IT & Mobile communications group, which includes the smartphone and mobile network businesses, now the biggest revenue generator of the company, delivered the strongest recovery. Total income from mobile handsets, predominantly smartphones, amounted to KRW 28.1 trillion ($24 billion), a 17% increase over a year ago, and 16% over last quarter.

More impressive was the profit growth: operating profit at the business group level grew by 31.5% year-on-year, and 87% quarter-on-quarter. The company attributed the profit improvement to “a product mix improvement and cost reduction after a lineup transition” including contributing from the new phablet Note 10 as well as the entry level A series. The “extended technology leadership via launch of Galaxy Fold and additional 5G models” also helped. At the last IFA show in September Samsung announced it had already shipped 2 million 5G phones and expected the volume to exceed 4 million by the end of 2019. Samsung is believed to have increased its smartphone market share to 21%, retaining the global leadership.

In contrast to the smartphone business’s recovery was the continued depressed performance of the Device Solutions group, which includes the semiconductors and display panel businesses, and is by far Samsung’s biggest profit generator. To illustrate the importance of this group to Samsung’s overall performance, the group level revenue, KRW 26.64 trillion ($23 billion), represented 43% of the company’s total revenue, but the operating profit, KRW 4.24 trillion ($3.6 billion), accounted for 55% of the total operating profit of Samsung Electronics, at a 16% operating margin. In comparison, the IT & Mobile group’s operating margin was at less than 10%.

The memory chip sector was particularly weak, where the revenues went down by 37% from a year ago to reach $13.26 trillion ($11 billion) although it was an 8% improvement from last quarter. The operating profit collapsed to KRW 3.05 trillion ($2.6 billion), a mere 22% of the level a year ago, and also more than 10% drop from an already weak Q2. This indicated increased demand for shipment but at depressed price levels.

Looking at Q4 and 2020, Samsung believes 5G will have a big impact on the company’s performance. It foresees that the profitability of the smartphone business will continue to be a challenge in Q4 “due to weaker mix from dissipating new model effects of Note 10 and increased marketing cost under strong seasonality”. For 2020 this group will “enhance competitiveness throughout entire lineup and by addressing growing 5G demand; strengthen foundation for further sales growth, mainly driven by foldable; expand sales of premium models and optimize operations for low-end to mid-range models to improve profitability.”

For the semiconductor sector, Samsung expects the demand for memory chips to be solid in Q4 as clients are replenishing inventory again, although it does note “uncertainties likely to linger due to issues in the external environment.” The system large-scale integration (S.LSI) business expects growth in “shipments of 5G 1-Chip SoC and 64Mp & 108Mp high-resolution image sensors”.

Global smartphone market returns to growth, driven entirely by Samsung and Huawei

Shipments in the global smartphone industry returned to growth for the first time in two years according to the latest numbers from Strategy Analytics.

A total of 366 million smartphones were shipped in Q3 2019, which is 2% up on the year-ago number. Only two vendors experienced growth themselves, however, with market leader Samsung up 8% and second-placed Huawei up 29%. Huawei has doubled its share of the global smartphone market in the past three years, largely at the expense of the long tail, with once prominent brands like Sony, HTC and Alcatel being swallowed up.

“Samsung shipped 78.2 million smartphones worldwide in Q3 2019, jumping 8 percent annually from 72.3 million units in Q3 2018,” said Neil Mawston of SA. “Samsung has lifted its global smartphone marketshare from 20 percent to 21 percent in the past year. Strong sales of the premium Galaxy Note 10 and mass-market A Series models boosted Samsung’s smartphone shipments and profit during the quarter.

“Huawei once again surprised everyone and grew its global smartphone shipments by an impressive 29 percent annually from 51.8 million during Q3 2018 to 66.7 million in Q3 2019. Huawei captured a record 18 percent global smartphone marketshare in Q3 2019, up sharply from 14 percent a year ago. Huawei surged at home in China during the quarter, as the firm sought to offset regulatory uncertainty in other major regions such as North America and Western Europe.”

That’s an understatement if we compare SA’s global numbers with Canalys’s China ones from yesterday. Canalys has Huawei’s shipments in China alone increasing by 16.5 million units, while SA has its global shipments increasing by 12.5 million. In other words Huawei shipments to everywhere except china decreased by 4 million, which is considerable.

There’s something odd about those Huawei China numbers. To suddenly grab 18 points of market share in such an incredibly competitive market stretches the limits of plausibility. But even if we assume the numbers are legit, Huawei must have made some pretty exceptional business moves to pull them off and we have to question how sustainable they are.

 

Samsung launches a new 5G modem.

Korean electronics giant Samsung had revamped its Exynos 5G modem and processor range with a couple of new ones manufactured on the 7nm EUV process.

The Exynos Modem 5123 and Exynos 990 processor are made using a 7 nanometer process technology, which is about as advanced as silicon tech gets these days and uses extreme ultra-violet is some clever way to deal with the physical challenges of operating at such tiny sizes. To the layman this means you can cram more transistors into a smaller space and thus make the chip perform better.

“Milestones in technological advancements are imminent all around us,” said Inyup Kang, President of the System LSI Business at Samsung Electronics. “Mobile 5G technology is opening new avenues for communication and connection, while AI is poised to become an everyday tool for people worldwide. Samsung’s Exynos 990 and Exynos Modem 5123 are perfectly adapted for high-volume 5G and AI applications, and are designed to help the world’s most ambitious enterprises, large and small, achieve their goals of bringing new capabilities to their markets.”

Samsung has plenty more detailed technical claims to make about the new chips but you get the gist. In other news Samsung is seeking to promote its new ‘experience space’ in Kings Cross by getting people to send in their selfies, which it then beams into space and displays on a Galaxy S10 smartphone that is somehow dangling in orbit. Here’s a video about it.

 

Samsung Galaxy S10 has a flaw that allows the fingerprint reader to be hacked

Following the discovery by a UK user that any fingerprint could unlock their phone, Samsung has announced it will issue a software patch.

The flaw was first made public earlier this week when Lisa Neilson from Castleford told the Sun newspaper about her discovery that she could unlock her Samsung Galaxy S10 with any finger, including her husband’s. It seems that the hack became possible when she put a screen protector on as the fingerprint reader in the S10 is embedded in the screen.

It looks like the reader was reading some kind of pattern on the screen protector rather than the finger pressing on it. Samsung rather unhelpfully responded that people should only buy Samsung-branded stuff, conveniently overlooking the fact that Samsung UK doesn’t even seem to sell screen protectors anyway.

There is also no advice offered on the problem anywhere on the Samsung UK site that we could see, but multiple media are reporting the following statement from Samsung: “We are investigating this issue and will be deploying a software patch soon.”

If it takes more than a software patch then Samsung would have to do yet another expensive product recall. For the ultrasonic fingerprint sensor to be hacked by something as simple as a screen protector is pretty embarrassing for Samsung. Furthermore, if it doesn’t provide a definitive answer to this issue very quickly then public trust in the security of its latest phones will start to erode rapidly.

Samsung looks to wrestle back control of India with financing initiative

With India one of the few markets which is demonstrating positive growth for smartphone shipments, Samsung is reasserting itself in the space with the launch of financing plans.

Launched in 5,000 outlets, the plan is to reach 10,000 by the end of 2019, Samsung Finance+ is a ‘universally accessible’ digital lending platform that provides financing to enable the purchase of Samsung devices. Samsung has also stated the platform is customisable, suggesting almost every Indian customer will be applicable for an offer of some kind.

“Samsung Finance+ is a testimony of our consumer-centric innovation,” said Mohandeep Singh, SVP of the Mobile Business at Samsung India. “It is also a ‘Make for India’ initiative towards financial inclusion and Digital India. We are confident that Samsung Finance+ will touch the lives of millions of consumers in India.”

Developed at the Samsung R&D Institute India-Bangalore, the process is an entirely paperless journey, while DMI Finance has partnered with the team for the initiative.

This appears to be a means for the business to wrestle back market share in one of the fastest growing technology markets.

Looking at India over the last couple of years, this is a region which has been fruitful for Samsung. Up until recently, Samsung had enjoyed a market leading position though this has been challenged by Xiaomi in recent quarters.

As it stands, Xiaomi is currently leading the market share rankings, controlling 28% of the shipments into the country during the second quarter, according to estimates from Couterpoint Research. 6% year-on-year sales increases were driven through portfolio expansion and aggressive offline expansion in the budget segment. Xiaomi usurped Samsung as leader of the market over the course of 2017/18 and is remaining in a strong position.

For Samsung, this couldn’t really have come at a worse time. India is under-going its own digital revolution thanks largely to the efforts to democratise connectivity by Reliance Jio.

Prior to the entry of Jio, the India telco market was stagnant. There was little enthusiasm from the incumbents to drive aggressive network expansion or evolution, while tariffs were prohibitively expensive for large swathes of the popular. Jio entered with a simple business plan; scale the adoption of affordable tariffs and bundle on digital services in the future.

Not only has the Jio disruption opened up the connectivity market to millions of new customers, it has also forced the likes of Bharti Airtel and Vodafone Idea to invest heavily in their networks, rethink pricing strategies and create new products. Jio has not only brought more customers into the connectivity fray, but it is quickly increasing the appetite of Indian consumers for digital services.

With the likes of Jio offering a wide-range of digital services, Netflix driving original content and Google creating an ecosystem which has been customised to the demands of India, the growing digital economy is only going add more momentum to smartphone sales. The more of a consumer’s life which is digitised, the more they are inclined to spend on smartphones. These are all positive developments for Samsung and its rivals.

With the India market surging towards the digital economy, Samsung could not have lost its leadership position at a worse time. Indian consumers are decreasing their refreshment cycles and increasingly looking to spend more on devices.

The fastest growing segment for devices in India is the $200-300 price range, and while there is still a huge space for feature phones, this is likely to shift over the coming years as more manufacturers alter the focus of their portfolio. Although this is a market which has been growing healthily over the last few years, due to the previously under-developed position and the sheer size of India, there is still plenty of room north.

As it stands, Samsung has slipped to second-place in the market share rankings, however it is recapturing some progress. During the second quarter, shipments declined by 7% year-on-year, however the numbers did increase 30% quarter-on-quarter. Analysts have suggested this growth is driven by refreshed A series and M series, price cuts of older J series and higher channel incentives. The financing element could offer a bit more breathing room for Indian consumers who are looking to step-up the smartphone tiers. Theoretically, it should aid the recovery.

Samsung is not in the worst position, though momentum is gathering behind competitors more readily. Apple is one company which has yet to crack the Indian market, though it is poised to open itself up more to consumer through offline purchases and the establishment of a branded retail footprint. Vivo is another Chinese brand which has been making strong progress thanks to its portfolio of cost-effective devices.

There are of course many markets around the world which can offer smartphone manufacturers significant growth when it comes to 4G devices, though India is one where momentum is gathering very quickly through an increasingly wealthy and digitally-defined society.

KT boasts of 1mn 5G subs and European roaming deals

KT has announced its 5G subscriber base has gone past the one million mark and it has entered into 5G roaming agreements with operators in Italy, Switzerland, and Finland.

KT, South Korea’s second largest operator, announced that it has won one million 5G subscribers five months after the service was launched, and one month after its competitor, SK Telecom, the country’s biggest operator, hit the milestone.

Meanwhile, KT has also reached 5G roaming agreements with TIM in Italy, Sunrise in Switzerland, and Elisa in Finland. This means that KT’s 5G subscribers will be able to use the 5G networks provided by those three operators in the three European countries.

KT has standing agreements with operators in 185 countries for 3G and LTE roaming. The operator aims to extend those agreements to 5G when 5G services go live in those countries. Prior to the agreements with the three European countries, KT had already set up a similar agreement with China Mobile, despite the fact it hasn’t launched services yet.

According to KT’s price proposals at the time of 5G launch, customers on the starting package (paying KRW 55,000, or $46 per month) will have 8 GB roaming data while overseas, with the speed capped at 1 Mbps. Those on higher tiers (paying KRW 80,000 ($67) or KRW 100,000 ($84) per month) will have unlimited roaming data, but the speed will be capped at 100 Kbps. Customers on the premium tier of the 5G service (KRW 130,000, or $109, per month) will have the speed limited lifted to 3 Mbps.

KT is not the first South Korean operator to tie 5G roaming partnerships. SK Telecom 5G subscribers will be able to connect to Swisscom while travelling in Switzerland, while those on LG U+ will be able to connect to China Unicom’s 5G when travelling to its neighbouring country, after the latter’s 5G service goes live.

The only catch for KT 5G users intending to visit Europe is that the roaming can only be done on Samsung Galaxy S10 5G, the vendor’s first 5G smartphone, though KT said the service will be extended to other devices soon. Earlier this month, at IFA in Berlin, Samsung announced that it had already sold 2 million 5G smartphones and expected to double the volume to 4 million by the end of the year.

SK Telecom and Samsung reckon we need 8K TV over 5G

Korean tech giant Samsung has teamed up with compatriot operator SK Telecoms to develop what they claim will be the world’s first 5G 8K TV.

On one level this should just be as simple as whacking a 5G modem into an 8K telly, but there seems to be more to it than that, hence the announcement. SK Telecom says that only when it applies mobile edge computing and network-based media processing to its 5G network will it be able to achieve seamless transmission of 8K video. The fact that those sorts of technologies are in the 5G roadmap anyway is beside the point.

Which brings us to the likely real reason for this announcement: to generate positive publicity for both companies. 5G has long been in danger of being a technological solution in search of a problem and the same could certainly be said of 8K video, in a world that is still trying to work out whether it sees much value in 4K.

“The 5G-8K TV is the culmination of ultra-low latency 5G networks combined with ultra-high definition TV technology,” said Park Jin-hyo, CTO and Head of ICT R&D Center at SK Telecom. “5G technology will help make the world of hyper media a reality.” Hyper media seems to refer to telly augmented by all kinds of other internet gimmickry.

Short of producing a 5G dongle it’s not clear what Samsung is bringing to the project other than cash and its consumer electronics brand. Nowhere is it explained why it’s preferable to deliver all this hyper media goodness over 5G rather than fibre, nor is it openly discussed what the minimum screen size would be beneath which the human eye is unable to discern any difference between 4K and 8K. But these are just details that shouldn’t detract from our jubilation that the 5G 8K era is almost upon us.

Samsung unveils its first 5G integrated chipset for smartphones

Samsung Electronics introduced Exynos 980, its first 5G integrated mobile chipset for the mainstream market. Mass production will start by the end of the year.

Samsung’s 5G devices have so far been using separate modem and APE solutions, including its own Exynos 9820 and Qualcomm’s Snapdragon 855 chipsets teamed up with the Exynos 5100 and Snapdragon X50 modems. The new 5G integrated chipset announced today is Samsung’s first. With an 8nm footprint, the chipset combines the 5G modem and APE processors using 8nm FinFET process.

“With the introduction of our 5G modem last year, Samsung has been driving in the 5G revolution and paved the way towards the next step in mobility,” said Ben Hur, VP of System LSI marketing at Samsung Electronics. “With the 5G-integrated Exynos 980, Samsung is pushing to make 5G more accessible to a wider range of users and continues to lead innovation in the mobile 5G market.”

The chipset’s key specifications include:

  • Modem: supports 5G NR Sub-6GHz with max 2.55Gbps downlink and 1.28Gbps uplink speeds. It is also backward compatible with LTE, 3G, and 2G.
  • CPU: one 2.2GHz Dual-core based on Cortex-A77, and one set of 1.8GHz Hexa-core based on Cortex-A55. It may be worth noting that Samsung’s high-end Exynos 9820 can go up to a max speed of 2.73 GHz.
  • Camera support: single-camera up to 108Mp, or dual-camera 20MP+20MP. Samsung also stresses the integrated AI capability to support photo taking.
  • Video support: 4K UHD 120fps encoding and decoding with HEVC(H.265), H.264, VP9

Samsung said in the announcement that the mass production of Exynos 980 is expected to start by the end of this year, indicating Samsung 5G smartphones and tablets based on this new chipset will hit the market in the first half of 2020, if not the first quarter.

One day earlier, Samsung announced Galaxy A90 5G, a mid-range 5G smartphone, based on Qualcomm’s Snapdragon 855 platform, which is aimed at taking 5G to the mainstream users. The new Exynos 980 is likely to power the next generation of mid-range devices.

The 5G momentum in South Korea, Samsung’s home market, has been going strong. After registering 1 million subscribers by the beginning of June, government data showed that by the end of July the total number of 5G subscribers, from all three operators combined, already topped 2 million.

Here is Exynos 980’s promotion video:

 

Nokia found to be best brand for prompt Android updates

There is significant variation in the performance of the leading Android smartphone makers when it comes to updating Android, according to new research.

Counterpoint has crunched the numbers and concluded that among all Android handset brands Nokia (manufactured by HMD Global) is the quickest and best at rolling out new versions of Android to its users after Google has issued them. Samsung Xiaomi and Huawei also do a decent job of serving their customers on this matter, but after them there’s a significant drop off.

Counterpoint android update chart

“Operating system and security updates are an aspect of Android smartphones that get relatively little attention,” said Peter Richardson of Counterpoint. “In our experience researching the industry, we have seen a few brands focusing on this. And perhaps because manufacturers are not talking about it, consumer awareness is also low. It doesn’t appear among the ten features consumers say they care about most, in our research.

“Unsurprisingly, therefore, little effort is expended by the top manufacturers in focusing on regular updates to the operating system and device security, despite it being a critical element in the continued safe performance of the smartphone. Many of the key features including battery life, processor, camera and memory are linked to the performance of the underlying operating system. We believe it is important to the overall consumer experience and is likely to become more widely recognized as such.”

This is a good point – what incentive is there for Android smartphone makers, who already operate on very thin margins and see Google and other OTTs hoover up most of the subsequence service revenue, to invest in something that has little apparent effect on sales? The main commercial answer would have to be brand reputation and things like NPS. Presumably prompt updates to yield some ongoing brand benefits and at least increase customer loyalty to some extent.

“High-priced devices are often updated first, but having the latest software is as important to mid- and low-priced products as it is to flagship devices,” said Abhilash Kumar of Counterpoint. “We, therefore, looked at manufacturers’ performance at updating software across all price tiers. By this analysis, Nokia stands out, again, as the brand most likely to update its full portfolio quickly.

Xiaomi and Lenovo also rank high in this metric. Brands like Alcatel and Tecno are the laggards. This is because these brands have broad portfolios, mostly in the sub-US$200 segment, and the lifecycle of their models tends to be short. Their products often transition from launch to end-of-life in as little as six months, which means they have less incentive to provide long-term updates.”

It seems likely that most brands are fairly prompt in updating their flagship devices but many drag their feet when it comes to the cheaper ones. As well as the reasons detailed above there’s the fact that the cheaper a device the more commo0ditised it is, making anything other than the core hardware feature set even less of a factor in purchasing decisions. That makes Samsung’s performance especially impressive since it has such a large device portfolio across all price tiers.

Ericsson and Nokia up their R&D game to compound Huawei misery

Whenever Huawei is facing scrutiny, rivals simply have to sit back and reap the benefits, though Ericsson and Nokia are upping the focus on research and development to compound the gains.

This is the opportunity which is being presented to Huawei’s rivals. When it is banned from certain markets, there is a gain. When there are security concerns shown, there is a gain. When there are questions about the resilience of the supply chain, there is a gain. All the likes of Ericsson, Nokia and Samsung have to do is sit back and do what they have been doing for years. The worse beating Huawei takes, the better their alternative looks.

What is clear is these companies will have to be as careful when capitalising on the misfortune, tip toeing over broken glass as gunfire rages overhead. Just look at the trouble Nokia CTO Marcus Weldon got himself in when criticising Huawei a couple of months back.

However, looking more closely at the financial reports of the rivals, there is perhaps evidence of an attempt to compound the gains by increasing R&D investments. There are of course numerous reasons why this would be done.

Firstly, if Huawei is considered the market leader for radio and transmission equipment, this is an opportunity to close the gap. Secondly, this is a chance to seize the initiative in the 5G race while the reputation of Huawei is picking up dents. Looking at the numbers, this story becomes a bit more apparent.

Vendor R&D investment as % of total revenues
Huawei c.15%
ZTE 14.9%
Nokia 21.2%
Ericsson 18%

The numbers above are taken for the first six months of 2019. Huawei hasn’t given numbers for the first half, only a full year commitment, so this is more of a rough guess. Samsung does not break-out financials for its network equipment division, keeping up its reputation for being less-than-transparent, so it is difficult to offer a comparison.

Including Samsung with the other four major network infrastructure providers might raise some eyebrows, but with a strong 5G RAN product Samsung now deserves to dine at the top table according to Heavy Reading Analyst Gabriel Brown, particularly in markets where it has made long-term, sustained investment in R&D and in customer support, such as the US, India and South Korea.

After years of investment and working to meet customer requirements, the US market offers promise to Samsung. Without Huawei and ZTE in the game, operators are looking for credible alternatives to the Nokia and Ericsson duopoly in RAN, while its Korean domestic market clearly offers some wins. There is a clear opportunity for growth, though as Brown points out, there are other considerations.

In terms of the 5G RAN, Samsung has competitive base station products according to Brown. However, it doesn’t necessarily have the breadth of portfolio, relationships or footprint to compete globally. Brown stated this is often an area which is underestimated and is expensive to build-up and maintain. Outside of its priority markets Samsung does not have the local support that telcos have come to expect nor the long-term in-country presence that gives operators confidence to do business.

However, it is still an opportunity, with the team is making the right noises, producing the right demonstrations and making the right connections to grow and claim market share.

The numbers above are taken for the first six months of 2019. Huawei hasn’t given numbers for the first half, only a full year commitment, so this is more of a rough guess. Samsung does not break-out financials for its 5G network equipment division, keeping up its reputation for being less-than-transparent, so it is difficult to offer a comparison.

Including Samsung with the other four major network infrastructure providers might raise a few eyebrows but work done over the last few years has raised their game. According to Heavy Reading Analyst Gabriel Brown, Samsung now deserves to dine at the top table, with strong focus on the US, India and South Korea.

Samsung is a company which is clearly benefiting from the Huawei misery. The US is a market which will offer promise to Samsung, though it will have some difficulties considering an ex-CEO of Ericsson is in charge at Verizon, while its domestic market clearly offers some wins. There is a clear opportunity for growth, though as Brown points out, there are other considerations.

In terms of the 5G base station product, Samsung is up there with the best according to Brown, though as it doesn’t necessarily have the relationships or product inventory in place it might struggle in certain areas. Brown stated this is often an area which is underestimated, as Samsung may well struggle to meet the timelines demanded by telcos in Switzerland or Columbia (for example). It doesn’t have the ‘feet on the ground’ or scaled manufacturing experience of its rivals, an element many telcos will have come to expect.

However, it is still an opportunity and the team is making the right noises, producing the right figures and making the right connections to grow and claim market share.

Back to the R&D investments, this is an important metric to judge vendors by and will gain interest from potential customers. At Ericsson, the 18.7% ratio invested in R&D is certainly an increase from the 14% and 15% it spent in 2015 and 2016 respectively. Nokia’s investments are also up from this period, though it has consistently hovered around this level. As a percentage of net sales, R&D accounted for 20.5% and 21.2% for 2018 and 2017 respectively at Nokia.

Although both of these firms are leaping ahead when it comes to the percentage, another factor that you have to take into account is that Huawei is spending more in real terms.

Vendor Total R&D investment in US$
Huawei $8.38 billion
ZTE $900 million
Ericsson $1.93 billion
Nokia $2.53 billion

While Huawei is vastly exceeding the amount spent by its rivals, it has a much broader scope. Ericsson focuses on mobile predominantly, while Nokia has both mobile and fixed businesses, as well as licencing payments from its former glory days as a leading mobile phone manufacturer.

Huawei has its fingers in a lot more pies. Not only does it focus on both mobile and fixed, it also has a subsea cable business and an enterprise unit, while the consumer group is now the largest contributor to total revenues. Looking at the consumer unit alone, Huawei will be investing R&D funds into smartphones, laptops, wearable devices and a new operating system to potentially replace Google’s Android.

This $8.38 billion figure should always be considered when comparing the R&D investments from all the rivals, but it should also be weighed against the broader business exposure Huawei as.

There are of course numerous factors to consider when judging who is winning the 5G race, geopolitical trends are close to the top of the list, but the percentage of revenues being attributed to R&D is another very important one. Although these numbers do not tell the whole story, perhaps it does indicate rivals are attempting to make the most of Huawei’s misery while they have a chance.