Apple May Briefly Drop to World's Third Largest Smartphone Maker For First Time Since 2011

Discussion in 'MacRumors.com News Discussion' started by MacRumors, Aug 10, 2017.

  1. MacRumors macrumors bot

    MacRumors

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    Chinese company Huawei will likely become the world's second largest smartphone maker in the third quarter, based on shipments from July through September, according to Taiwanese publication DigiTimes.

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    The report, citing sources from Taiwan's handset supply chain, said sales of Huawei's high-end smartphones like the P10 and Mate 9, as well as its more affordable Honor-branded models, have continued to gain momentum. Enough momentum, perhaps, to briefly overtake Apple's iPhone.

    Huawei shipped 38.4 million smartphones last quarter, according to research firm Strategy Analytics. Buoyed by seasonal factors, the supply chain sources believe Huawei will continue to ramp up its shipments to over 40 million units this quarter, which could eclipse iPhone shipments over the same period.

    Apple reported it sold 41 million iPhones last quarter, but that total could drop slightly this quarter due to frequent rumors about the highly-anticipated iPhone 8, which may lead some customers to delay purchasing a new iPhone.

    "We do think that based on the amount of rumors, and the volume of them, that there's some pause in our current numbers," said Apple CEO Tim Cook, referring to iPhone sales. "Where that affects us in the short term, even though we had great results, it probably bodes well later on."

    Apple hasn't reported lower iPhone sales in the September-ending quarter versus the June-ending quarter since 2011, however, so if customers truly are holding off, it'll be the first decline over the summer in six years.

    It would also be the first time that Apple drops out of the top two spots in smartphone shipments since 2011.

    It's quite possible, however, that Apple launches its new iPhone lineup in early September and, in line with the past five years, begins shipping the smartphones to customers by mid month. And given the current quarter doesn't end until September 30, Apple could still outpace Huawei with a few weeks of strong sales.

    Even if the launch is delayed, sales of the new iPhone lineup in the following quarter will almost certainly be well above Huawei's.

    For what it's worth, Apple probably isn't too concerned about where it ranks in smartphone shipments. First, shipments within distribution channels don't necessarily reflect sales to end customers. Second, Apple cashes in the overwhelming majority of profits in the smartphone industry.

    Huawei, on the other hand, will likely feel quite accomplished if it can surpass the iconic iPhone for even one quarter.

    The company, based in Shenzhen, China, has set a lofty goal of becoming the world's largest smartphone maker by 2021. It's been making an aggressive push into Europe and Canada, and AT&T has reportedly tentatively agreed to sell at least one flagship Huawei smartphone in the first half of next year.

    "Huawei is now closing in fast on Apple and Apple will be looking nervously over its shoulder in the next few quarters," said Woody Oh, Director at Strategy Analytics. "Huawei is outperforming across Asia, Europe and Africa with popular Android models such as the P10 and Mate 9."

    Huawei held just 1 percent market share in the United States as of the first quarter, according to research firm IDC.

    Article Link: Apple May Briefly Drop to World's Third Largest Smartphone Maker For First Time Since 2011
     
  2. joshwenke macrumors regular

    joshwenke

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    This can only mean a better smartphone market for consumers! Competition is always great.
     
  3. kemal macrumors 6502a

    kemal

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  4. big-ted macrumors regular

    big-ted

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    Good to see that the Chinese buy locally built phones in such numbers
     
  5. nt5672 macrumors 65816

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    #5
    Well according to wikipedia, "Ren Zhengfei, a former deputy director of the People's Liberation Army engineering corp, founded Huawei in 1987 in Shenzhen."

    Can't think of a better person to trust my personal information with.
     
  6. Michaelgtrusa macrumors 604

    Michaelgtrusa

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    Amazing what you can do when you've had the success and back breaking work of others handed to you.
     
  7. Sasparilla macrumors 6502a

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    >> "Huawei is now closing in fast on Apple and Apple will be looking nervously over its shoulder in the next few quarters," said Woody Oh, Director at Strategy Analytics. <<

    Gotta laugh at this. Huawei is the one nervously thinking about this, just like with Samsung, Apple won't care.
     
  8. Relentless Power, Aug 10, 2017
    Last edited: Aug 10, 2017

    Relentless Power macrumors G5

    Relentless Power

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    I think Huawei's real competition will be Samsung. Huawei is just now trying to enter the U.S.market, which inevitably will give the consumer more options for a cheaper handset, with similar aspects to the iPhone. But I agree competition drives the smart phone industry in some respects.

    However, it's difficult to compete with iOS and the iPhone build quality coupled with their customer service.
     
  9. lyngo macrumors 6502

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    Cue the "Apple is doomed" thoughts and opinions. :/
     
  10. OldSchoolMacGuy Suspended

    OldSchoolMacGuy

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    For the Chinese, every phone is locally built.

    Name a major phone brand NOT manufactured in China.
     
  11. DakotaGuy macrumors 68040

    DakotaGuy

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    The one thing that could doom Apple at least in the short term is a new Korean War. Shut down LG and Samsung who are a couple of their biggest suppliers and things will be ugly for awhile.
     
  12. Nozuka macrumors 68000

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    They provide very good value for the money. No surprise there.
    But i don't think they are competing for the same customers.
     
  13. DoctorDoctor macrumors regular

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    Apple is doomed. Sell your stock now before it is too late !!!! ;)
    --- Post Merged, Aug 10, 2017 ---
    Oh man that is funny. I somehow think Apple will be just fine.
     
  14. IJ Reilly macrumors P6

    IJ Reilly

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    Third, rank doesn't matter, not even a little.

    What matters is how many are sold, not in comparison to anyone else, and how much profit is made from those sales.
     
  15. Michael Scrip macrumors 601

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    #15
    Some are Huawei's customers are high-end.

    But with an overall average selling price around $250... yes... they are mostly appealing to a different type of customer.
     
  16. 69Mustang macrumors 601

    69Mustang

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    PROFITS!!! I don't want to hear anything else! PROOOOOOOFITS!!!
    [fingers in ears]
    PROFITS! PROFITS! PROFITS!
    [nearly hyperventilates]

    -someone in this thread most likely:p:D
     
  17. Abazigal macrumors 604

    Abazigal

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    What competition? Apple has practically all the profits in the market, and I doubt anyone at Apple loses sleep over the thought of the competition selling vast quantities of cheaper phones. Phones that don't compete with the iPhone in any meaningful manner.
     
  18. twolf2919 macrumors member

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    Samsung and LG are the biggest suppliers for everyone.
     
  19. HJM.NL macrumors 6502a

    HJM.NL

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    Don't think to lightly about huawei. Im from the netherlands and have seen huawei taking market share in a very rapid time over here. Two years ago i would laugh about huawei but since then I've seen many of my friends buying a huawei with better specs and same quality built then the iPhone. There are lots of people we don't just buy blindly Apple anymore and can get the same or better from huawei for a fraction of the price. Huawei had dual camera before Apple and their cameras make the same or even better photo's then the iPhone 7 plus. It's even possible to adjust depth after you took a photo on a huawei. I think huawei will pose an even greater threat to Apple than Samsung over time. Their ability to innovate is beyond of apple's. More and more people over here realize that you can get more for half the prize Apple is offering. It's only a matter of time Apple has to adjust its prices to stay relevant in a fast changing world. If the iPhone 8 will be above $ 1000 people will buy them for the brand name not for the possibilities it has to offer.
     
  20. Analog Kid macrumors 601

    Analog Kid

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    Basically, it's our fault...
     
  21. Ries macrumors 68000

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    It's like celebrating you got scammed, wehaaa, the company I bought products from, overcharged me so much that they have record profits again! Please raise the prices $100 more, so it's even higher next year!
     
  22. HJM.NL macrumors 6502a

    HJM.NL

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    I really don't understand why you saying this so proudly. The reason Apple is making such an huge amount of money is because they let their buyers pay too much for their products. Apple has lost its crown as making the best mobile phone since last your but still wears the crown for most expensive phones. You could get so much better these days for almost half the price elsewhere.
     
  23. intofx macrumors regular

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    #23
    Apples balance sheet says who's #1. Where do Samsung & Huawei land in that list?
     
  24. AJ5790 macrumors regular

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    Except Apple still makes all the money, so is this really competition?
    --- Post Merged, Aug 10, 2017 ---
    Wrong, ridiculous thinking. The millions of phones that Apple sells are NOT, repeat NOT, all purchased by “isheep”, my parents, and many other people I know that don’t give two hangs about tech buy Apple happily, because it’s a better product. People pay what it’s worth. And keep buying it. The collective intelligence of all those millions who believe what they pay is worth it supersedes your opinion. Sorry.
    --- Post Merged, Aug 10, 2017 ---
    Amazing... just because I’m willing to pay more than you are doesnt mean I’m being overcharged. They charge what it costs To make plus about 30%. I don’t have a problem with that.
     
  25. intofx macrumors regular

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    #25
    Overcharged? how do you come up with your "should be price". Apple is the best at negotiating pricing throughout their supply chain and building quality. I haven't see your phone that your company developed priced cheaper.... oh wait. Its easy to talk, do it and get back to us.
     

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