Huawei overtakes Apple as world No. 2 smartphone seller, gains ground in China
SEE ALSO :Safaricom unveils 400G networkHuawei on Tuesday said overall it had raked in 15 percent higher revenue in the first six months of 2018, steady at levels seen a year ago. According to IHS and Strategy Analytics, Huawei grabbed more than 15 percent of the global smartphone market over April-June, overtaking Apple’s roughly 12 percent and just behind Samsung Electronics Co Ltd’s nearly 20 percent share. Data from Canalys, which estimates industrywide smartphone shipments in China topped 100 million in the second quarter from 91 million in the first, shows Huawei grew its share of the home market by 6 percentage points on year to a record 27 percent. The Chinese market is key for Huawei as it has come under fire from the United States, Australia and other nations over concerns it could facilitate Chinese government spying. The company has been virtually shut out from the United States with no major carriers selling its smartphones.
SEE ALSO :Huawei CFO suing Canada over arrestHuawei has denied it facilitates spying and has said it is a private company not under Chinese government control and not subject to Chinese security laws overseas. CHINA HEADWINDS Analysts, however, expressed concerns over the whether the improvement in the Chinese market was sustainable. While the rate of decline has eased, the Chinese market is expected to weaken in the following quarters, Canalys said. “The larger vendors face a high degree of uncertainty over the current trade situation with the U.S.,” analyst Mo Jia said.
SEE ALSO :Huawei sues US governmentSales there had fallen dramatically in 2016 after Chinese consumers shunned the iPhone 7, whose overall appearance differed little from its predecessor. Samsung Electronics, the biggest smartphone maker globally but almost a bit player in China, on Tuesday posted its slowest quarterly profit growth in more than a year as its Galaxy S9 lost ground to rivals. Increasing brand recognition is enabling Huawei to challenge Samsung in many price segments, IHS’ Schneemann said. Huawei said all its businesses, including smartphones, telecom equipment and IT infrastructure services, did well in the first six months of the year. Revenue rose to 325.7 billion yuan ($47.97 billion), while operating margin rose to 14 percent, from 11 percent a year ago. The Shenzhen-based firm did not provide a detailed performance breakdown for the period. The company does not release a profit number for the half year. Huawei’s consumer division, which houses its smartphones business, accounted for roughly a third of its total revenue last year. It got half its revenue from its carrier business.
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