It’s been just a few weeks since Huawei surpassed Samsung as the number two tablet maker after Apple and already there’s signs that Sammy may return to its former spot. Samsung Electronics is expected to take advantage of the US bans that were applied to Huawei this week.
There’s an extra info which you probably didn’t know: US placed a 25% tariff on tablets imported from China. Apple may also have some trouble, as it gets overcharged for tablets made in China. Right now, the iPads account for 75% of the US tablet market, with 70% of the Apple tablets being shipped to the US, meaning that Apple’s core business is still in USA.
The tablet demand in USA is about 40 million units a year, accounting for 27% of the worldwide shipments. 80% of tablets shipped worldwide are made in China, which puts things into perspective, since they will all be extra charged. In the first quarter of 2019 Apple, Huawei and Samsung were the top 3 tablet makers, in this order. The biggest wins are those for companies who make units outside China.
This leaves Samsung as the winner, without extra tariffs and with the ability to make its tablets in South Korea if things get nasty. Digitimes Research’s experts expect that smaller tablet makers and the midrange plus entry level market will be hit harder than the higher end slates.