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.”