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Huawei crackdown

Huawei phones gain China market share from patriotic buying

Customers rally behind brand amid industrywide slump

Huawei shipped nearly 59 million smartphones worldwide during the second quarter.   © Reuters

GUANGZHOU -- Huawei Technologies shipped 36.3 million smartphones in its home market of China in the April-June quarter, up 27% from a year earlier, riding a patriotic backlash against American sanctions on the company.

Huawei's market share grew 9.6 percentage points to 37% in IDC data out Tuesday. U.S. restrictions imposed in May essentially bar the company from procuring American components, yet shipments appear to have been hardly affected by these measures.

The U.S. pressure has fueled purchases of Huawei devices here as Chinese companies encourage employees to buy them, for example.

Huawei bucked the national trend of declining smartphone sales. Overall shipments in China dropped 6.1% on the year to 97.9 million last quarter. Full-year shipments sank for a second straight year in 2018 in a saturated market. Consumers are also growing thriftier amid soft corporate earnings.

Globally, second-quarter smartphone shipments shrank 2.3% to 333.2 million units, according to IDC. Even as smartphone markets of developed economies become saturated, Huawei's shipments rose 8.3% to 58.7 million, thanks largely to sales in China.

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