The successful US effort to hamper China’s Huawei has benefits other tech companies, from smartphone makers to network vendors, according to a report by Axios on Friday.

  • The large-scale disruption to the industry increased an industry-wide mismatch between supply and supply, worsening the global chip shortage.
  • Neil Shah, a partner at Counterpoint Research stated that the international sanctions on Huawei had a two-fold effect.
  • Shah noted that the one effect was Huawei sucked in most of the components supply to help its smartphone business survive in the next 12 months.
  • The move pushed mobile competitors to compete in booking orders even though the overall smartphone has been relatively moderate.
  • The resultant shake-up benefited nearly every participant in the market, but Xiaomi was the biggest winner.

The other side was that Huawei is still a giant company. Even though sales dropped nearly by 30%, the company still reported revenue of $71.5B for the first nine months of 2021.