Huawei Closing in Fast on Apple in Smartphone Sales According to Latest Estimate

Discussion in 'MacRumors.com News Discussion' started by MacRumors, Aug 2, 2017.

  1. MacRumors macrumors bot

    MacRumors

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    Chinese smartphone maker Huawei aims to become the world's largest smartphone maker by 2021, ahead of both Apple and Samsung, and the latest market share data suggests it continues to make progress towards that goal.

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    Huawei P10

    Huawei shipped an estimated 38.4 million smartphones in the June quarter, a 20 percent increase over a year ago, according to research firm Strategy Analytics. By comparison, Apple reported it sold 41 million iPhones in the same period, up nearly 2 percent from 40.4 million iPhones in the year-ago quarter.

    Huawei's market share rose to an estimated 10.7 percent in the quarter, putting the Chinese company well within striking distance of Apple's estimated 11.4 percent market share in the quarter. Samsung continued to lead the market with a 22.1 percent share of shipments, according to Strategy Analytics.

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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. "Huawei is outperforming across Asia, Europe and Africa with popular Android models such as the P10 and Mate 9."

    Beyond the iPhone sales numbers, officially reported by Apple, it is important to acknowledge that these are estimated figures, and shipments within distribution channels do not necessarily reflect sales to customers. Apple also captures the vast majority of profits in the smartphone industry.

    Third Place

    Since 2011, the worldwide smartphone market has been dominated by Apple and Samsung. The elusive third-best spot, meanwhile, has failed to be held down by one vendor for an extended period of time, changing hands between Nokia, BlackBerry, Xiaomi, and Huawei over the past six years.

    In 2014, it looked like low-priced Chinese vendor Xiaomi had firmly cemented its position as the world's third-largest smartphone maker, but due to a limited retail presence and declining popularity, Huawei is now firmly in the driver's seat.

    Huawei has been making an aggressive push into several European markets, and it's even testing the North American market after launching its smartphones in Canada in June. Huawei isn't well known in the United States, however, largely because it lacks agreements with Verizon, AT&T, T-Mobile, and Sprint.

    American customers have to resort to retailers such as Best Buy or Walmart, or Huawei's direct sales website, to purchase one of their unlocked smartphones, reducing the brand's visibility in a country where Apple and Samsung reign supreme.

    If Huawei can find success in Canada, then perhaps it will consider tackling the much larger market south of the border next.

    Apple's Decline in China

    Apple reported revenue of $8 billion in Greater China in the June quarter, a 10 percent decrease compared to the year-ago quarter, and some analysts believe that's partly due to the iPhone's declining popularity in the country.

    iPhone market share in China fell to 9 percent in the first six months of 2017, from a peak of 14 percent in 2015, according to Counterpoint Research. iPhone was only the fifth best selling smartphone in China during the June quarter, behind other Chinese rivals like Oppo and Xiaomi, research firm Canalys said.

    Apple CEO Tim Cook didn't have much to say on iPhone in China during its post-earnings conference call on Tuesday, but he did comment on the growing popularity of messaging app WeChat, developed by Tencent, in the country.

    "In terms of WeChat, the way I look at this is, because iOS share is not nearly a majority of the market in China, the fact that a lot of people use that... it makes the switching opportunity even greater," said Cook. "I think that's more the case than the risk that a lot of folks have pointed out."

    "I see Tencent as one of our biggest and best developers," added Cook, who remains optimistic about China. "They have done a great job of implementing iOS features into their apps, and we are looking forward to working with then even more to build even greater experiences for our mutual users in China."

    The focus now shifts to the fall, when both Apple and Huawei are expected to unveil new flagship smartphones. Huawei reportedly said its upcoming Mate 10 handset will be able to compete better than ever with the so-called iPhone 8.

    Article Link: Huawei Closing in Fast on Apple in Smartphone Sales According to Latest Estimate
     
  2. meaning-matters, Aug 2, 2017
    Last edited: Aug 2, 2017

    meaning-matters macrumors 6502

    meaning-matters

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    Design of various Android phones is nicer. But Apple rules with iOS, much higher quality, and by far the best service.
     
  3. Zirel, Aug 2, 2017
    Last edited: Aug 2, 2017

    Zirel Suspended

    Zirel

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    #3
    Another meaningless metric.

    What’s the ASP of Huawei phones?

    Oh, you don’t say, don’t you?

    Wonder why...

    What happens when you multiply the ASP of each brand with the number of devices sold? Hmmm.....

    And what happens if one brand or another gets caught in a problem like defective exploding batteries (happened with Samsung, can happen with anyone), how much phones Apple will need to replace, and Huawei, do they have money for that liability?

    And Android? With ALL THAT HUMOUNGOUS marketshare, what is happening with captivating developers? With Mac vs Windows, Apple struggled and still struggles because there weren’t enough software for Mac (eg games, CAD software, etc.), but with mobile, AppAnnie just announced that the AppStore went from +90% of developer revenue than the PlayStore to now +95%.

    Throwing sand at the eyes...
     
  4. Danoc macrumors 6502

    Danoc

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    Market is consolidating. I think Huawei is eating Chinese competitors first.
     
  5. oplix macrumors 65816

    oplix

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    The real measurement of market penetration is in the paid advertising inherently built into the devices.
     
  6. newyorksole macrumors 68030

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    Ahhh so they SHIPPED 38M, versus what Apple SOLD. Gotchya!
     
  7. Amazing Iceman macrumors 68040

    Amazing Iceman

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    #7
    There's a market for everyone. Being on the top 3 or 4 is good enough to please most of the world's demands.
    Neither Apple or Samsung can please everybody.
    Huawei sells cheap phones, so that increases their number of units shipped. We just don't know how many of those units are comparable to the iPhone models Apple shipped and comparable Samsung models.
    In other words, this Report is just about counting beans, not actual revenue.
     
  8. danskin macrumors member

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    #8
    Apple: let's remove VPN apps so there will be even less incentives for consumers in China to buy iPhones.
     
  9. kodos macrumors regular

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    Regardless of what Huawei does -- the news for Apple is this: revenue is down in China, while the China market grows.

    Not a great sign after so much effort being exerted to penetrate the Chinese market. As much as a lot of us like the idea of the total ecosystem that Apple brings to the device, for a lot of people the spec sheet speaks louder, especially if the price is lower. In places where WhatsApp is probably central for messaging even Facetime (something that locks people to iOS in the States) doesn't really draw you to Apple.
     
  10. Sedulous macrumors 68000

    Sedulous

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    There is nothing special about any Android brand that might retain repeat customers.
     
  11. Mad Mac Maniac macrumors 601

    Mad Mac Maniac

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    #11
    1) apple doesn't give a crap about Marketshare ranking... they just wanna keep increasing sales (and "making the best smartphone with the highest customer sat!")

    2) I look at this and my heart just goes out to the giants of yore... HTC, Motorola, Nokia, Blackberry, Sony, palm....
     
  12. citysnaps macrumors 68030

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  13. anthorumor macrumors 6502a

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    #13
    In Australia I virtually know no one who uses Facetime or iMessage, even though Facetime is synonymous to video chat.
    Whatsapp is king here. Makes sense, as it's spread across multiple devices (including desktops via your phone).
     
  14. mi7chy macrumors 68040

    mi7chy

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    #14
    Apple has the edge on brand recognition but Huawei has better design, quality and value that's why the local Chinese phones are outselling the foreign Chinese phones like iPhones.
     
  15. Sunny1990, Aug 2, 2017
    Last edited: Aug 2, 2017

    Sunny1990 Suspended

    Sunny1990

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    Being "Top"means nothing. But "Best"means everything. :apple: iPhone is not for everyone, it's for those who want the best.
     
  16. justperry macrumors 604

    justperry

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  17. kdarling, Aug 2, 2017
    Last edited: Aug 2, 2017

    kdarling macrumors demi-god

    kdarling

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    #17
    Shipped and sold means the same thing in these reports.

    Apple, like most everyone else (*), reports a sale when a unit is shipped to a retailer.

    So when you read that Apple sold 40 million iPhones, it does not mean they were all sold to end users. Most were sold to retailers. And some quarters, millions of those go unsold until the next quarter.

    (*) Samsung reports the sale AFTER the unit arrives at a retailer. By reporting earlier, at time of shipping, Apple can publicize bigger sales numbers during opening weekends while millions of units are still on the way to stores.
     
  18. RamGuy macrumors 6502a

    RamGuy

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    Why would or should Apple be looking over their shoulders? That sounds like marketing gibberish where someone is applying that someone that is doing better than themselves is in a much tighter spot than they really are so to make themselves look in a better light than what really is the case.

    Sure, if Apple sold 100% of the phones in the world it would be great for them. But Apple is still making records on their iPhone's every quarter. The sales doesn't seem to be slowing down, while their profits seems to keep increasing. Why should they feel nervous? It seems like this is bigger issue for other Android manufactures as they have to grab sales from somewhere and they don't seem to be grabbing that many iPhone customers as Apple is still going strong despite Huawei having great increases in sales.
     
  19. gnipgnop macrumors 6502a

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    Better design and quality? Where's Huawei's OS? Where's Huawei's custom SoCs? You can't omit those things from design and quality considerations. Huawei doesn't even attempt to include them.
     
  20. Kid Red macrumors 65816

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    I had to do a triple take because I swore that was an iphone.
     
  21. Michaelgtrusa macrumors 604

    Michaelgtrusa

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    #21
    The Blu phone has spyware on it as it war reported many times as well as the others Crooked Amazon was selling it knowing, it all from the same source. If you want to sell you tech in commie china you must share it with us, that really means let them steal it. I see no innovation here.

    How much did they pay to have this posted here?
     
  22. justperry macrumors 604

    justperry

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    #22
    I have used most video messaging Apps, FaceTime is by far the better one, I have to make calls to a certain country (Your neighbour) daily and Facetimne has the better audio/video quality, it won't drop frames like others do, it gets way less audio interference as others do, when quality worsens it won't display video, this is better than stuttering video on other Apps.
     
  23. RickInHouston macrumors 6502a

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    #23
    apple must clink to imessage and hope the damn holds. If alternatives to imessage appear in an open platform...

    Just a guess.
     
  24. gnipgnop macrumors 6502a

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    #24
    Which is why Apple is ramping up their efforts and presence in India. China isn't really in a no-lose situation when it comes to these things.
     
  25. maerz001 macrumors 6502

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    #25
    I wonder what the other 150 million units are
     

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