BHUBANESWAR: For the first time in history, a Chinese company has become the world’s second largest smartphone seller after managing to break the seven-year-long dual hegemony of Samsung and Apple. The news took the sheen off what was otherwise a cheerful day for the iPhone maker as it delivered its best-ever revenue in its typically weakest quarter.
According to several research groups, including International Data Corporation, IHS Markit, Canalys and Counterpoint, Huawei not only overtook Apple, but also narrowed the gap with market leader Samsung.
The Korean giant retained the top position with 21 per cent market share after shipping out 71.5 million device for the quarter, down about 10 per cent from the same time last year. Huawei raced into the second spot shipping out 54.2 million phones in the second half of this year, up 41 per cent, for a 15 per cent share of the market. Apple sold 41.3 million iPhones, up 1 per cent, for a 12 per cent market share.
“Huawei’s strategy has evolved significantly over the last six months,” said Mo Jia, Canalys Analyst. Despite its failure to strike a US carrier partnership earlier this year, the company has turned around quickly, moving away from its drive for profitability and focusing instead on finding volume growth at the low end. Honor, which has long been a major brand in China but relatively small overseas, has taken a pivotal role in this strategy,” she said.
The Chinese market remains the key for Huawei as it continues to face significant headwinds in its telecommunications business. Following the US, security officials in the UK, Australia and Canada have in recent months warned of potential national security risks from using the Chinese firm’s equipment. This has forced Huawei to work harder across the Asia Pacific region, where its sales more than doubled compared to last year. Outside of China, Huawei has experienced strong growth in Europe, the Middle East and Africa.
Data from Canalys showed Huawei shipped close to four million Honor-branded smartphones outside of China for the quarter, representing a 150 per cent growth.While the success of Huawei will concern Samsung, it should also serve as a warning to the iPhone maker with rivals, including Xiaomi constantly improving their hardware while keeping prices low, analysts pointed out.