Do you still want to "de sinicize"? Dell's shipment volume in China plummeted by nearly 50%, while Huawei counterattacked and became second place

With the popularity of smartphones, the PC (personal computer) market is gradually shrinking, which is a global phenomenon. Even so, there is still fierce competition among major factories around the world. Nowadays, after the ban on the sale of American Meguiar products in China, another American company's business in China is bleak.

According to Observer Network, according to the latest data released by market research institutions, Huawei's PC domestic market shipment volume increased by 34.1% year-on-year in the first quarter of this year, rising to the second place in the industry with a share of 10.7%. Although there is still a certain gap between this data and Lenovo's nearly 40% share, it should be noted that the last time they achieved this ranking was in 2020, when the impact of the US crackdown on Huawei had not yet been revealed.

Firstly, behind Huawei's rise in the PC market, it has accumulated successful experience and support in other fields. Huawei's mobile phone and communication equipment business has spread globally and achieved great success. Behind these successes, Huawei follows a consistent philosophy: technology and innovation. Therefore, in the PC market, Huawei also adheres to this concept. Their PC products are based on innovative chip architectures, as well as high-quality hardware and software technology, as well as excellent design capabilities, which can provide a perfect user experience. Huawei's PC products are generally positioned at the high-end end and priced relatively high, but due to the superior quality of the entire machine, they have been recognized by a considerable number of consumers.

Secondly, Huawei's channels and marketing strategies have been very successful. Huawei is committed to establishing good cooperative relationships with major e-commerce platforms and offline retailers, and has strengthened its marketing efforts. Through various channels of promotion, it has quickly expanded its influence in the PC market. Huawei PC products have also received endorsement from some celebrities, such as many well-known directors and actors actively promoting Huawei PC products on their Weibo accounts, greatly increasing consumer recognition of the Huawei PC brand.

Dell's situation is different. Dell was once a giant in the computer industry, but the reasons for its gradual decline are diverse. The most critical factor is Dell's lack of innovation and leading technology in PC products, leading to their products becoming increasingly outdated, unable to meet user needs, and gradually losing market competitiveness. In addition, Dell also made a serious mistake of 'de Chinese'.

In early 2018, the US government introduced the Chip Act, requiring all electronic products issued and listed in the United States to use chips made in the United States. This is a major blow for Chinese technology companies. However, unlike Huawei's choice, Dell has chosen to comply with the requirements of the US government and embarked on its own "de Chinese" path. It not only no longer chooses Chinese partners in chip procurement, but also plans to exclude all chips produced in China from production lines, completely cutting off cooperation with the Chinese semiconductor industry.

Undoubtedly, Dell's move will have a negative impact on the Chinese semiconductor industry, and even more seriously, it will lead to a chain effect of foreign capital withdrawal. Other foreign-funded enterprises may also consider whether to continue staying in the Chinese market or withdraw from the Chinese market. If these enterprises also exit the Chinese market one after another, it will cause greater losses to China's chip industry.

However, Dell closely followed the policies of the US government, but the result was a backlash: refusing to use the Chinese industrial chain resulted in higher production costs for Dell, resulting in higher factory costs and a significant decrease in its product competitiveness. The competition could only compete with similar toad tablets, making it inevitable for Dell to retreat from the Chinese market.

From the Trump administration to the Biden administration, the most important aspect of the US crackdown on China is to contain China's semiconductor industry. However, both the method and effectiveness of this containment are worth discussing. At present, various links in the global semiconductor industry chain are interdependent, and if one link goes wrong, the entire system will be affected. Dell may have a deep understanding of this. On the other hand, this suppression will also force China to enhance its independent research and development capabilities, as it cannot rely solely on imported chips, giving China's semiconductor industry greater development space.

Overall, the US chip containment against China is a short-sighted behavior that will have a long-term impact on the global semiconductor industry. Foreign companies should recognize this and not dance with politics. They should have their own opinions and take their own countermeasures.