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Huawei Takes Big Bite Out Of Apple’s Market Share

Huawei has officially overtaken Apple as the world’s second-largest handset vendor (by unit sales) for the first time, according to a report from analyst Gartner.

The Chinese company surpassed Apple in Q2 of 2018, selling 498,465 units compared with Apple’s 447,151 units, and at  the same time recording a huge 38.6 per cent jump in quarter-on-quarter sales.

Overall global sales of smartphones to end users grew by 2 per cent in the second quarter.

“Huawei continues to bring innovative features into its smartphones and expand its portfolio to cover larger consumer segments,”Gartner research director Anshul Gupta said. “Its investment into channels, brand building and positioning of the Honor devices helped drive sales.”

Huawei has successfully expanded its smartphone portfolio to cover larger areas of the consumer market, Gupta added. “Its investment into channels, brand building and positioning helped drive sales. Huawei is shipping its Honor smartphones into 70 markets worldwide and is emerging as Huawei’s key growth driver.”

Samsung kept the number one vendor spot it snared from Apple at the start of 2018, despite suffering a 12.7 per cent fall in sales for the quarter.

“Samsung faces slowing global smartphone demand and ever-growing competition from Chinese manufacturers,” Mr Gupta says. “The slowing demand for its flagship smartphones left Samsung with lower profitability. It now expects the Note 9 smartphone to revive growth.”

He added that weakening demand for Apple’s iPhones had led to its fall in position. “Demand for the iPhone X has started to slow down much earlier than when other new models were introduced,” he said.

Xiaomi, another Chinese vendor, claimed fourth spot thanks largely to its integrated online and offline retail model, Gartner said, adding that growing competition from Chinese brands and consumers’ greater expectations for value had put pressure on Apple.

Google’s Android extended its lead over Apple’s iOS, securing 88 per cent market share compared with 11.9 per cent share for Apple’s iOS in the second quarter.

Apple is expecting its new iPhone range, due before the end of the year, to provide a much-needed market boost, Gartner added.