Tuesday, 14 August, 2018

Huawei knocks off Apple to become No. 2 phone seller

OnePlus 6 sales helped OnePlus beat Samsung in India’s premium market 15% revenue growth is great for most – but it's piddling if you're Huawei
Troy Mann | 03 August, 2018, 20:18

While the report did not disclose the number of devices shipped, market experts estimate that quarterly smartphone shipments range between 1-1.5 million units.

"The importance of Huawei overtaking Apple this quarter can not be overstated", said Canalys analyst Ben Stanton. To negate the slow demand at home, Chinese phonemakers are putting more focus on markets such as India, South East Asia, eastern Europe, the Middle East and Africa where there is still room for expansion.

OnePlus led the premium smartphone segment for the first time ever in India, capturing 40 per cent of the market driven by record shipments of its OnePlus 6 as compared to its previous flagships.

It is the first time in seven years that anyone other than Samsung and Apple has occupied the top two spots on the list. Apple's main increase in smartphone revenue came from a bump in the iPhone's average selling price, not an increase in sales, and in raw numbers, the 41.3 million iPhones sold by Apple was still more than 10 million short of Huawei's 54.2 million total.

Despite the minor differences in data, all the three reports communicate the same thing - that the global smartphone declined around 2-3%, Huawei grew rapidly and overtook Apple, and Samsung is seated at the top even though its shipments dropped. However, it seems none of this affected the firm's business, as it has now surpassed Apple to become the second-largest smartphone seller in the world.

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Global smartphone shipments declined by 2% annually in Q2 2018, as users in markets such as China, the United States and western Europe are upgrading to newer phones less frequently. Pathak also noted that Honor is driving overseas growth for Huawei.

China and the U.S. are also embroiled in a trade dispute with both nations imposing tariffs on billions of dollars worth of goods and fighting over technology and patents, which analysts said creates significant uncertainty for all of the major smartphone brands.

Whether or not Huawei can maintain its current astounding growth to approach Samsung, which remains well out in first position with 71.5 million phones shipped in the same period, remains to be seen. "In addition to this, models such as the iPhone 7 and 7 Plus are also losing steam", said Stanton, adding that an uptick in iPhone 8 and 8 Plus, helped in part by the Product Red campaign, was enough to offset this trend.

While it is fast-growing globally, Huawei has yet to make inroads into the US.

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