Wednesday, 29 August 2018 10:08

Huawei leapfrogs Apple to No 2 ranking in global smartphone sales: report Featured

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Chinese telecoms giant Huawei, for the first time ever, has surpassed Apple to secure the number two vendor ranking in worldwide smartphone sales, according to a newly published report.

With Apple bumped down to the third position, Huawei’s smartphone sales grew 38.6%  to 49,8 million for the second quarter of 2018 in the latest smartphone sales report from analyst firm Gartner.

The report reveals that overall, global sales of smartphones to end users grew 2% in the second quarter of 2018 to reach 374 million units.

Apple’s performance was flat in the second quarter of 2018 (0.9% growth).

“Huawei continues to bring innovative features into its smartphones and expand its smartphone portfolio to cover larger consumer segments," said Gartner research director Anshul Gupta.

gartner aug29 one

"Its investment into channels, brand building and positioning of the Honor devices helped drive sales. Huawei is shipping its Honor smartphones into 70 markets worldwide and is emerging as Huawei’s key growth driver."

Gupta said minimal incremental value in Apple's current-generation flagship iPhones led to slower growth in the second quarter.

“Demand for the iPhone X has started to slow down much earlier than when other new models were introduced," he said.

"Growing competition from Chinese brands and consumers’ greater expectations for phone value is putting immense pressure on Apple to deliver enhanced value on their premium iPhones to foster growth."

gartner aug29 two

Gartner says Chinese vendor Xiaomi’s focus on expanding its portfolio and adopting a unified retail model by integrating offline and online retail is also driving growth in a slowing global smartphone market – helping the company to secure the No. 4 spot in the worldwide smartphone market in the second quarter.

While Huawei and Apple traded positions, Samsung kept the top spot, despite declining 12.7% in the second quarter of 2018, with sales of 72,3 million units for the quarter.

On Samsung, Gupta says the vendor faces “slowing global smartphone demand and ever-growing competition from Chinese manufacturers”.

"The slowing demand for its flagship smartphones left Samsung with lower profitability. It now expects the Note 9 smartphone to revive growth."

In the smartphone operating system (OS) market, Gartner reports that Google’s Android further extended its lead over Apple’s iOS in the second quarter of 2018, securing 88% marketshare to 11.9% share for iOS.

Statistics: courtesy Gartner

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Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

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