Huawei is curtailing its network of stores in Russia. Four out of 19 outlets have closed in the past four months, and the rest are likely to suffer the same fate. One of the reasons is half-empty equipment warehouses, shops have nothing to sell. But Huawei itself is to blame for this, having halved the supply of its gadgets to Russia.
Huawei gets rid of Russian retail
In Russia, Huawei branded stores began to close, RIA Novosti reports. The Chinese vendor began to reduce its presence in the country almost immediately after the start of the special operation in Ukraine, and after several months this process not only did not stop, but also picked up speed.
According to RBC, the first sales point of Huawei equipment was closed on February 28, 2022. It was located in the Riviera shopping center in the capital. At the time of publication of the material in Russia, there was a total of four Huawei stores less. The closure affected not only metropolitan outlets, but also sales centers located in the regions.
Huawei continues to distance itself from Russia
So, before the moment when Russia was under the yoke of a historically large number of sanctions, there were 19 Huawei stores in the country. In addition to what was in the Riviera shopping center, salons in Novokuznetsk, Rostov-on-Don and Ufa closed their doors to visitors.
Who is guilty
Huawei officials do not comment on the reduction of the company’s retail network. An unnamed RBC source said that the reason for the closure of stores lies in the lack of equipment in warehouses, as well as in the decline in demand for smartphones in Russia.
At the same time, Huawei itself is partially to blame for the half-empty warehouses. She joined the anti-Russian sanctions almost immediately after February 24, 2022, the company halved the supply of its equipment to Russia without a clear explanation of the reasons. It should be noted that Xiaomi and Oppo did the same.
According to Izvestia, at the end of March 2022, Huawei decided to refuse to conclude contracts for the supply of its equipment to Russia, which also could not but affect the number of goods in Russian warehouses. At the same time, some of the employees of her Moscow office were forcibly transferred to remote work.
Representatives of the Russian Ministry of Digital Development said that Huawei’s reluctance to enter into new contracts is due to the decision of the US authorities. They banned the supply to Russia of equipment that uses American components, or if American technologies are used for production.
Mobile phones are not limited
Huawei doesn’t just make smartphones. This is one of the largest vendors of telecom equipment – its products are used in the vast majority of Russian networks, along with the hardware of the Finnish Nokia and Ericsson.
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Both of these companies have officially announced the suspension of their activities in Russia. As the last member of the trio of foreign telecom equipment vendors, Huawei was given high hopes, since the company did not announce the termination of the supply of the same base stations.
But, as it turned out, everything is much more complicated than it might seem. According to Kommersant, at the end of May 2022, Huawei stopped communicating with Russian customers and completely stopped supplying equipment. In other words, there is no official announcement, and the new base stations have also disappeared.
We add that as of June 9, 2022, Huawei did not declare support for the global anti-Russian movement. Meanwhile, she, along with American Google and Apple, removed the applications of Russian banks from her AppGallery store.
There is no tragedy
If we consider Huawei solely as a smartphone vendor, then the Russian market is unlikely to suffer much, even if the supply of mobile phones from this brand is completely stopped. The company was in fact once one of the leaders of the Russian mobile market. But in May 2019, Googleinstall its services on its smartphones, including YouTube, Gmail, Maps and even the Google Play store, without which it is simply inconvenient to use the devices. As a result, by the fourth quarter of 2021, Huawei and its former “daughter” Honor have divided only 3% of the Russian smartphone market into two (GS Group statistics). The main sales came from Xiaomi, Samsung, Apple and Realme smartphones.