Samsung may gain from Huawei's plight in trade war: Fitch

Reuters

Posted at May 27 2019 10:37 AM

The Samsung Galaxy S10e, S10, S10+ and the Samsung Galaxy S10 5G smartphones can be seen on a wall arrangement at a press event in London, Britain February 20, 2019. Henry Nicholls, Reuters

Samsung Electronics Co Ltd may have a chance to strengthen its position in the smartphone market due to the hurt caused to Huawei Technologies Co Ltd in the wake of US-China trade tensions, according to Fitch Ratings.

Tech companies, including Google and SoftBank Group-owned chip designer ARM, have said they will cease supplies and updates to Huawei.

The loss of access to Google's Android system may hurt the smartphone sales of the Chinese technology company outside China, thereby giving Samsung a chance to improve its market share, Fitch Ratings said in a statement.

Earlier this month, the US government hit Huawei with severe sanctions as the US Commerce Department blocked the Chinese company from buying American goods amid its escalating trade spat with China.

The ratings agency also added that iPhone maker Apple Inc could be another casualty of the trade tensions between Beijing and Washington, which would accelerate its market share loss in China.