China's Huawei passes Apple in smartphone share for first time


The embattled Chinese phone maker shipped 54 million handsets in the quarter, an increase of 41 percent over a year ago, researcher Canalys reported Tuesday.

IDC's latest data on the top 5 global smartphone manufacturers in terms of shipments and market share for the second quarter of 2018.

Chinese electronics giant Huawei has officially edged out Apple, emerging as the world's 2nd smartphone seller, according to figures released by IDC (International Data Corporation).

In the overall market, Samsung and Xiaomi are fighting a close battle with the former regaining leadership by 1% margin after two quarters, as per Counterpoint. During the same quarter a year ago, Apple posted iPhone sales of 41.02 million units. They account for 42% of market share controlled by the top10. The company reached over 40 percent market share in the premium segment (Rs 30,000-plus) in the April-June quarter compared to 9 percent in the same period previous year in 2017. The company shipped 41.2 million iPhones and showed a modest growth of 0.7% as compared with the past year shipped 41.0 million units.

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While Apple had a very respectable three months ending in June, selling 21.3 million iPhones, raking in $29.9 billion of a record-breaking $53.3 billion revenue, reports have Chinese Huawei managing to sell 54.2 million units during the same period. The company performed well in the premium segment as its most expensive iPhone X is the best seller in numerous markets.

Outside of China, Huawei's increasing brand recognition newly allowing it to compete at the top end, but the Chinese market remains key for Huawei as it has come under fire from the US, Australia and other nations over concerns it could facilitate Chinese government spying.

"Apple shipment volume stayed flat, with just 0.7% year-over-year growth, rising slightly to 41.3 million units".

The Chinese brands are now trying to control the premium segment with Huawei, Oppo, Vivo and Xiaomi launching devices this year.

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"For most markets, the ultra-high end ($700+) competition is largely some combination of Apple, Samsung, and Huawei, depending on the geography, and this is unlikely to change much in the short term", Reith said.

This can be attributed both to increased awareness of the brand through marketing and longevity, but also due to the critically-acclaimed Huawei P20 flagship.

OnePlus derives nearly a third of its global revenue from India and its a sign that the company is doing well when it posts shipments.

Although Huawei now sits at second in the smartphone leaderboard, Samsung still stands at the top.

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Apples troubles are partly because the iPhone 8 and iPhone X are getting old (new models coming soon) and because of the higher duty tax (which was raised to 20% on April 1).