May 4, 2019
The smartphone industry is basically over, because the smartphone has peaked. There is literally no qualitative difference between an iPhone 6 and an iPhone XS.
So the only time people are going to be buying phones from here on out is when they drop them.
And they are going to be buying Huawei, because there simply is no reasonable excuse for continuing to charge $900 for old technology.
Apple is attempting to become a luxury brand, but having a new iPhone is not like driving a Ferrari or wearing a Rolex.
You aren’t signaling high status by spending an extra $600 on a cellphone. You’re just signaling that you’re an asshole. Unlike driving a Ferrari or wearing a Rolex, anyone is capable of coming up with the extra $600 for a phone once a year. So unless Apple starts charging tens of thousands for their phones, the status symbol “I paid more money for this because I have a lot of money” element is meaningless.
Six consecutive quarters. That’s how long the smartphone market has been in decline so far. And market leaders like Apple and Samsung are really feeling the pain. But not Huawei.
On a tear in China but also coming on strong in Europe, Huawei saw 50 percent growth in smartphone sales in Q1 year over year, while Apple plummeted 30 percent, according to IDC. Samsung didn’t struggle as much, but shipments were still down 8 percent, and that was before the Galaxy Fold debacle.
The scary part? Huawei phones aren’t even sold officially in the U.S. This is largely due to security concerns and reported links between Huawei and the Chinese government. Huawei has denied those claims and is suing the U.S. government. And yet Huawei is thriving anyway.
The “security concerns” are just a gigantic hoax. There is zero proof that China is installing spying technology in the current generation of Huawei phones. Even if they wanted to do that, it would be pointless, because they run on Android and every government has the software to remotely hack an Android phone.
Furthermore, the claim that the US government cares about the security of technology is laughable. They refuse to even regulate any element of the tech industry, and these companies sell data to anyone, so the Chinese can just buy whatever information they want.
Then you have the basic question of why the Chinese would even want to spy on the average American citizen.
The reason Huawei is not allowed to be sold in the US is that the government is attempting to thwart the Chinese economically, not militarily.
We are finally witnessing the rise of China as a creator rather than simply a manufacturer.
Despite the political controversy, Huawei has been one of the most innovative smartphone makers over the past few years. For example, in 2016, the Huawei P9 was the first phone co-engineered with Leica with a dual-lens shooter. The Huawei Mate 10 in 2017 was the first phone with an embedded AI chip. And last year’s Huawei Mate 20 Pro was the world’s first phone to offer reverse wireless charging (way before the Galaxy S10).
For its most recent Huawei P30 Pro, the company literally reinvented the smartphone camera, delivering not only a 5x periscope zoom but a super spectrum sensor that delivers incredible low light performance with a crazy-high ISO of 409,600. As a result, the P30 Pro edged out Google’s mighty Pixel 3 in a photo face-off, which has been our best camera phone.
“Apple and Samsung should definitely be worried,” said Avi Greengart, founder and lead analyst for Techsponential. “The perception that a flagship phone has market-leading advances is crucial to the value proposition.”
We all witnessed Korea push out Japan as the key developer of technology.
When was the last time you saw a Sony or a Panasonic television or appliance? It is all LG and Samsung.
Even the Korean cars have replaced Toyota and Honda as the go-to practical vehicle.
So now, you are going to witness China do the same trick, and push Korea out.
Unlike Japan and Korea, China is not a US ally. In fact, the US is obsessed with trying to overthrow and replace the government of China, and is contemplating a literal hot war with them.
What’s more: China is a much bigger country than Japan or Korea, so their conquest of the technology market is going to be much more extreme. And they are going to be able to leverage this economic domination geopolitically in a way that Japan and Korea never had any interest in doing.
I, for one, welcome our new insect overlords.