Huawei Overtakes Apple as Second-biggest Smartphone Seller

China-based Huawei Technologies has just snatched from Apple Inc. the position as the world’s second-biggest smartphone seller in the June quarter, according to data from market research firms, as the business held stronger footing in Europe and expanded its lead back home.

giant HUAWEI letters written beside its logo in a building

The estimated rise in market share comes as a slowdown in the world’s biggest smartphone market eased.  Huawei has also accomplished getting ahead of rivals by selling more feature-packed phones, said analysts.

“Huawei is shifting to more value-added models, by launching new flagship smartphones with the latest features.  Huawei’s P20 Pro is the first flagship smartphone model to be equipped with triple cameras, beating competitors to market,” said IHS Markit analyst Gerrit Schneemann.

Huawei on Tuesday said that overall it had fetched in 15 percent higher revenue in the first six months of 2018, firm at levels seen a year ago.

According to IHS and Strategy Analytics, Huawei raked in more than 15 percent of the global smartphone market over April to June, leaving behind Apple’s roughly 12 percent and just after Samsung Electronics Co Ltd’s nearly 20 percent share.

Data from Canalys, which believes that industry-wide smartphone shipments in China beat 100 million in the second quarter from 91 million in the first, indicates that Huawei grew its share of the home market by 6 percentage points on year to a record 27 percent.

The market in China is key for Huawei as it has already come under scrutiny from the United States, Australia, and other nations over worries it could facilitate Chinese governmental spying.

The business has been virtually shut out from the United States with no major carriers selling its smartphones.

Huawei has denied it facilitates espionage and has said that it is a private company not under the Chinese government control and not subject to Chinese security laws overseas.

Analysts, on the other hand, expressed concerns over the question of sustainable improvement in the Chinese market.

Even though the rate of decline has slowed down, the Chinese market is expected to weaken in the following quarters, said Canalys.

“The larger vendors face a high degree of uncertainty over the current trade situation with the US,” said analyst Mo Jia.  “Increasing prices and maintaining market share in the face of a stronger US dollar might be easy for a brand such as Huawei, but will be difficult for Xiaomi, Oppo, and Vivo,” added Canalys analysts.

China and the United States have been in a trade dispute, both nations slapping tariffs in goods worth billions, fighting over technology and patents.

These duties have not yet been slapped at Apple iPhones,  but the company’s Chief Executive Tim Cook stated on a conference call on Tuesday that he was looking into the possibility of the company being hit by the tariffs on purchases it must make, possibly related to data centers.

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