Huawei surpasses Apple in Q2 smartphone shipments


During the quarter, Huawei shipped 54.2 million devices with a growth of 41% YoY, while shipments of Apple remained flat at 41.3 million, a growth of just 1% when compared to the same period previous year.

Samsung with its Galaxy phone line retained the phone crown but lost ground to upstart Huawei by shipping 73 million units, an 8 percent decline year over year.

Huawei shipped 54.2 million smartphones in Q2 2018, IDC reports, giving the Chinese firm a record-high worldwide market share of 15.8 percent. Even Samsung's arch rival, Apple, had a weak quarter with market share dropping to 14% - its lowest ever in the country.

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Globally, the smartphone market continued its slowdown with shipments slipping 1.8 percent for the quarter to 342 million units.

Global smartphone shipments declined by 2% annually in Q2 2018, as users in markets such as China, the United States and western Europe are upgrading to newer phones less frequently. With that said, there has been a shift over the last few months, with Huawei reportedly overtaking Apple in total smartphone shipments. "Increasing brand recognition in Europe and Asia is enabling the company to challenge Samsung in many price segments".

"The continued growth of Huawei is impressive, to say the least, as is its ability to move into markets where, until recently, the brand was largely unknown", said Ryan Reith, program vice president with IDC's Worldwide Mobile Device Trackers.

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Korean tech major Samsung captured 34 per cent share of the premium smartphone segment in India in the June quarter, while Apple's share was at 14 per cent - the lowest for the United States brand.

According to Hong Kong-based Counterpoint Research, the premium smartphone segment (Rs 30,000 and above) grew 19 percent annually and 10 percent sequentially during Q2 2018.

Meanwhile, Honor, an e-brand under Huawei Group, said yesterday that their sales performance overseas during the first half of the year increased 150%, compared to the same period in 2017, according to local media. Despite shipping fewer units than analysts had expected, Apple reported that iPhone revenue was up 20 percent from the same period past year. "Chinese brands have ramped up their distribution, understand the market much better and will create pressure for Apple and Samsung who have dominated till now", said Counterpoint Research partner and research director (IoT, mobile and ecosystems) Neil Shah. However, the company managed to ship more units during the same quarter a year ago, which shows that a design overhaul might be needed for the Galaxy S series of devices in order to compel customers to upgrade their existing phones. Despite the iPhone X receiving a lukewarm response, the company saw a 1 percent increase in its iPhone shipments during Q2, 2018.

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