Huawei overtakes Samsung to become largest smartphone seller
Huawei shipped more smartphones worldwide than any other vendor for the first time in Q2 2020. It marks the first quarter in nine years that a company other than Samsung or Apple has led the market. largest smartphone seller
Huawei shipped 55.8 million devices, down 5% year on year. But second-placed Samsung shipped 53.7 million smartphones, a 30% fall against Q2 2019.
Huawei is still subject to US government restrictions, which have stifled its business outside of mainland China. Its overseas shipments fell 27% in Q2. But it has grown to dominate its domestic market, boosting its Chinese shipments by 8% in Q2, and it now sells over 70% of its smartphones in mainland China. China has emerged strongest from the coronavirus pandemic, with factories reopened, economic development continuing and tight controls on new outbreaks.
“This is a remarkable result that few people would have predicted a year ago,” said Canalys Senior Analyst Ben Stanton. “If it wasn’t for COVID-19, it wouldn’t have happened. Huawei has taken full advantage of the Chinese economic recovery to reignite its smartphone business. Samsung has a very small presence in China, with less than 1% market share, and has seen its core markets, such as Brazil, India, the United States and Europe, ravaged by outbreaks and subsequent lockdowns.”
Huawei was forced to release its own operating system called HarmonyOS last year. But analysts have previously cast doubt over its success in international markets given the fact that it is missing key apps from the App Store.
The Chinese telecommunications giant faced further pressure this year from Washington. A new rule introduced in May requires foreign manufacturers using U.S. chipmaking equipment to get a license before being able to sell semiconductors to Huawei.
“Taking first place is very important for Huawei,” said Canalys Analyst Mo Jia. “It is desperate to showcase its brand strength to domestic consumers, component suppliers and developers. It needs to convince them to invest, and will broadcast the message of its success far and wide in the coming months. But it will be hard for Huawei to maintain its lead in the long term. Its major channel partners in key regions, such as Europe, are increasingly wary of ranging Huawei devices, taking on fewer models, and bringing in new brands to reduce risk. Strength in China alone will not be enough to sustain Huawei at the top once the global economy starts to recover.” largest smartphone seller
