Richard Yu, CEO of Huawei's Consumer Business, speaks while presenting the P30 Series smartphone during a launch event in Paris.
Marlene Awaad | Bloomberg | Getty Images
Huawei's smartphone shipments in China rose in the second quarter as the Chinese tech giant captured the highest market share of any vendor in the country in eight years, according to new data from Canalys research firm.
Canalys said Huawei's smartphone shipments in China increased 31
"Huawie's addition to the US entity list caused uncertainty abroad, but in China it has kept its foot on the gas pedal," says Canalys analyst Mo Jia. "The core strategy is to continue investing in aggressive offline expansion, attracting consumers from rival brands Oppo and Vivo, while unleashing a wave of marketing to support new channels and technologies."
Huawei now captures 38% of China's market share, according to Canalys. The research, published Tuesday, found that Huawi's global mix has "moved back toward China" as it faces rising US scrutiny and barriers
On Tuesday, Huawei reported a 23.2% increase in revenue for the year before six months of 2019 this year despite facing political headwinds.
In May, the Trump administration put Huawei on a so-called device list that required companies to receive special licenses to sell or transfer technology to Huawei.
U.S. officials claim Huawei's technology could pose a national security risk by opening a backdoor for Chinese spying. They point to Chinese laws that allegedly require every domestic company to help gather intelligence services if Beijing so requests. Huawei has repeatedly denied that it would engage in any form of espionage or provide data to the Chinese government.
"Huawei's retail partners roll out advertisements to associate Huawei with being the patriotic choice, to appeal to a growing demographic of Chinese consumers willing to take political factors into consideration when making a purchase decision, "said the Canalys reports.
Apple warned of weak demand in China at the beginning of the year, but cited market improvements last quarter. Analysts will be watching closely for Apple's revenues in China as the iPhone maker reports fiscal revenue from the third quarter after the market closed Tuesday.