Huawei had a market-first with the P20, the first smartphone with a triple-lens camera system.
Dubai - Other Chinese smartphone makers post strong growth
Published: Wed 1 Aug 2018, 8:29 PM
Last updated: Wed 1 Aug 2018, 11:26 PM
The top two smartphone vendors are now from Asia - and Chinese brands are continuing their ascent towards force-to-be-reckoned-with status.
China's Huawei has shaken up the smartphone market, surpassing Apple for the No.2 spot in global smartphone shipments in the second quarter of 2018, according to two new reports from IHS Markit and the International Data Corporation (IDC).
While having marginal differences in the figures reported by research firms, both revealed that the top five vendors - in order - are Samsung, Huawei, Apple, Xiaomi and Oppo.
And though South Korea's Samsung retained the top spot with a market share of almost 21 per cent for both studies, it also posted the biggest decline in shipments, down 10.8 per cent and 10.4 per cent, according to IHS Markit and the IDC, respectively, from a year ago.
Huawei grew 41 per cent (IHS Markit) and 40.9 per cent (IDC), with both research firms pegging shipments at 54.2 million in the second quarter.
Apple, now third, had a market share of 12 per cent, according to both firms, with shipments equal at 41.3 million.
Huawei's peers from China delivered healthy growth. Xiaomiwas the biggest gainer with 45.6 per cent (IHS Markit) and 48.8 per cent (IDC). Lenovo's Motorola, eighth on IHS Markit's list, recorded a 41.5 per cent jump. The IDC reported only up to fifth ('others' had a market share of 40.1 per cent).
In IHS Markit's report, No.6 Vivo had growth of 20.3 per cent, while Oppo, at fifth, posted a 4.5 per cent rise.
In a statement to Khaleej Times, Shenzhen-headquartered Huawei pointed out that it had also grabbed the second spot ahead from Apple in the Middle East and Africa.
GfK's report for May show that the Huawei Consumer Business Group's market share in the Middle East and Africa was 21 per cent, an increase of 31.25 per cent compared to December 2017. Including the Levant, the figure is at 37.4 per cent.
The company had a market share of 20 per cent in the UAE, while in Saudi Arabia it is at 27 per cent. Oman is at 30 per cent, Iraq is at 25 per cent, Egypt is at 24 per cent and Pakistan is at 22.2 per cent.
And while Huawei's move up the ladder is no small thing for itself and its homegrown peers, there are some factors that should be considered as to why this has happened, IHS Markit analyst Gerrit Schneemann said.
"Huawei taking No.2 globally is a significant achievement for the company and a good sign for other Chinese brands. But it has to be seen within context: Samsung had a challenging quarter. For Apple the quarters leading up to the launch of the next-generation iPhones are also 'weaker'. Longer-term, Huawei has the potential to surpass Apple consistently, but this is unlikely to happen in 2018," Schneemann told Khaleej Times in an e-mailed response to questions.
"The difference between brands like Oppo, Vivo, Xiaomi and Huawei is that Huawei has been able to establish brand recognition in markets beyond its home market. Xiaomi has seen success in India and is expanding in European markets. Oppo and Vivo are just at the beginning of their international expansion. Gaining traction in mature markets will be important for all these brands, as it means that they can push into higher-priced segments of the market, where margins are better than in the mid-range and low-end," he added.
Schneemann also pointed out that new features are also helping Huawei upend the competition.
"Huawei is shifting to more value-added models, by launching new flagship smartphones with the latest features," he said.
"Huawei's P20 Pro is the first flagship smartphone model to be equipped with triple cameras, beating competitors to market. Increasing brand recognition in Europe and Asia is enabling the company to challenge Samsung in many price segments."
The competition, though, will remain interesting; more movements are expected in the rankings, and Apple's upcoming iPhone refresh in September will play a vital role in it.
"It is worth noting that Apple moved into the top position each of the last two holiday quarters following its product refresh, so it's likely we'll see continued movement among the top ranked companies in 2018 and beyond," said Ryan Reith, programme vice-president with IDC's Worldwide Mobile Device Trackers.
That said, "the continued growth of Huawei is impressive, to say the least, as is its ability to move into markets where, until recently, the brand was largely unknown," he added.
- alvin@khaleejtimes.com
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