Thursday, September 6, 2018

Huawei roars past Apple to close smartphone gap with Samsung

In the second quarter of 2018, Huawei surpassed Apple to secure the No. 2 worldwide smartphone vendor position for the first time ever, according to research and advisory firm Gartner.
Apple moved into the No. 3 spot. Overall, sales of smartphones to end users grew 2% in the second quarter of 2018 to reach 374 million units.
“Huawei’s smartphone sales grew 38.6% in the second quarter of 2018. Huawei continues to bring innovative features into its smartphones and expand its smartphone portfolio to cover larger consumer segments,” said Anshul Gupta, research director at Gartner.
“Its investment into channels, brand building and positioning of the Honor devices helped drive sales. Huawei is shipping its Honor smartphones into 70 markets worldwide and is emerging as Huawei’s key growth driver.”
Samsung maintained the No. 1 global smartphone vendor spot, declining 12.7% in the second quarter of 2018.
“Samsung faces slowing global smartphone demand and ever-growing competition from Chinese manufacturers,” said Gupta. “The slowing demand for its flagship smartphones left Samsung with lower profitability. It now expects the Note 9 smartphone to revive growth.”
Apple’s performance was flat in the second quarter of 2018 (0.9 per cent growth). “Minimal incremental value in Apple’s current-generation flagship iPhones led to slower growth in the second quarter of 2018,” said Gupta.
“Demand for the iPhone X has started to slow down much earlier than when other new models were introduced.”
Gupta said that growing competition from Chinese brands and consumers’ greater expectations for phone value is putting immense pressure on Apple to deliver enhanced value on their premium iPhones to foster growth.
Xiaomi’s focus on expanding its portfolio and adopting a unified retail model by integrating offline and online retail is driving growth in a slowing global smartphone market. This helped Xiaomi secure the No. 4 spot in the global smartphone market in the second quarter of 2018, Gartner said.

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