Huawei Picks the Smartphone Prize

Huawei Picks the Smartphone Prize

Huawei has overtaken Samsung as the world’s largest shipper of smartphones, on a quarterly basis, virus or no virus. This happened despite U.S. sanctions which forced Huawei to phase out Google services for  its own Harmony operating system, Canalys reports. How do you handle China? Nothing seems to be working for Washington!

Huawei shipped more smartphones worldwide than any other vendor for the first time in Q2 2020. It marks the first quarter in nine years that a company other than Samsung or Apple has led the market. Huawei shipped 55.8 million devices, down 5% year on year. But second-placed Samsung shipped 53.7 million smartphones, a 30% fall against Q2 2019.

Huawei is still subject to US government restrictions, which have stifled its business outside of mainland China. Its overseas shipments fell 27% in Q2. But it has grown to dominate its domestic market, boosting its Chinese shipments by 8% in Q2, and it now sells over 70% of its smartphones in mainland China. China has emerged strongest from the coronavirus pandemic, with factories reopened, economic development continuing and tight controls on new outbreaks.

Of course Samsung has a double play. It may no longer be the world’s smartphone king, but its Q2 profits were up 23% due to strong demand for its memory microchips. The company explains: The Memory Business saw robust demand for cloud applications related to remote working and online education as the impact from COVID-19 continued, while demand for mobile was relatively weak.”

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3 thoughts on “Huawei Picks the Smartphone Prize

  1. The shipment happened largely within the Chinese market, so doesn’t really reveal anything great; the virus has already distorted global market.

    The very virus that has remained intractable in many parts of the world is perpetually under control in China, the very place it all began.

    For now any market numbers coming from China need to carry asterisk, the rest of the world is still struggling to get a handle on the economic impact of the virus, while China is operating on another level.

    For some organisations, the year 2020 never existed, just chalk it off and hold your breath…

    Reply
    1. You are right Francis. However, a look at the Global growth between Q1 and Q2 2020 shows that Huawei shipment annual growth improved (-17% to -5%) compared to Samsung (-17% to -30%).
      If Huawei finds a way to grow shipments in mainland China while shutting off the likes of Samsung, they will continue to win. Once the Harmony OS penetrates China, it will burst out to the other parts of the world especially developing countries and India., where sales of low cost phones will continue to grow. Yes, give it 2-3 years and Huawei will build user confidence and this will propel shipment growth and global sales. It is difficult to tame a dragon.

      Reply
  2. India just banned some Chinese originated apps and its not gonn a stop at Apps. The US will back India in stopping the shipment of Huawei handsets via some via lessening restrictions or other incentives to the Indian govt. In all I see Huawei coming out stronger and the Harmony OS displacing Android OS in the nearest future. Huawei wins in the longrun. Huawei is setting up a robust eco-system that will rival Android OS and Google playstore it’s only a matter of time that Huawei phone becomes the status symbol phone. Only a matter of time ppl

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