Huawei continues to grow as Apple’s China sales fall

Huawei P30 smartphone

This is yet another double-digit growth for Huawei for the sixth consecutive quarter against the backdrop of a gloomy Chinese market. After two years of continuous decline, Canalys says the global smartphone market finally saw an increase in shipments in the July to September period this year.

The company is the cheapest variant of the iPhone price 11 $ 50 less than the last-generation model, even as drawn in the launch of new models by month compared to previous year, which helped sales in the September quarter.

The reason being these handset makers are but to launch 5G smartphones and have been pushing aggressively with pre-registrations for upcoming 5G-enabled units, together with a reduction with free information.

With the expected rollout of the super-fast 5G network in China in coming months, Huawei's advantage is expected to grow further.

Huawei is in a strong position to consolidate its dominance further amid the 5G network roll-out, given its close relationships with operators in the country's 5G network deployment as well as control over key components such as local network compatible 5G chipsets, according to Nicole Peng, Canalys vice-president for mobility.

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Huawei's shipments in the latest quarter are equal to the combined shipments of the three other major Chinese brands Vivo, Oppo and Xiaomi, and eight times that of Apple's 5.1 million iPhone quarterly sales in China.

IHS recorded that Samsung is still the world's largest smartphone manufacturer, shipping 78 million units during the period - a year-on-year increase of 10 per cent - and increasing its market share by 2 percentage points to 2 per cent. It shipped 66.8 million devices, up 29% from Q3 2018.

The company's profits remain resilient despite pressure from the United States, with revenue jumping 27 per cent in the third quarter.

Apple didn't immediately respond to a request for comment on the 5G opportunity in China. The Chinese tech giant now commands 42% of China's overall smartphone market, not only outpacing Apple but even its local Chinese competitors like Vivo, Oppo, and Xiaomi. Shipments to its home market surged 66 percent in the quarter, but only rose about 18 percent sequentially overseas, and many analysts foresee a drop in overall global sales because of its inability to access American software and circuitry.

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