Huawei Q2 Shipments Pass Apple, Samsung Leads

OnePlus,OnePlus 6,OnePlus 6 offers

OnePlus,OnePlus 6,OnePlus 6 offers

Huawei overtook Apple in the second quarter of 2018 to become the world's second largest smartphone vendor, according to market research released Tuesday.

"The premium segment is becoming crowded".

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.

Samsung captured 34 per cent share of the premium segment.

The second quarter is traditionally weak for Apple on a seasonal basis, said UK-based Canalys analyst Ben Stanton, estimating that the Cupertino, California-based technology giant shipped over 8 million iPhone Xs in the period, down from 14 million in the previous quarter. Its shipments declined 25% YoY due to decline in shipments of Galaxy S9 as compared to Galaxy S8 past year.

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"It is worth noting that Apple moved into the top position each of the last two holiday quarters following its product refresh, so it's likely we'll see continued movement among the top ranked companies in 2018 and beyond", Ryan Reith, program vice president with IDC's Worldwide Mobile Device Trackers, said in a statement. The increase in demand in the premium segment was driven by increasing offers around the new launches as compared to a year ago, with offers ranging from cashbacks, data-bundling, exchange offers, and more to reduce the affordability gap.

If companies like Huawei, Xiaomi, OPPO, and others want to generate a significant amount of revenue, then they will need to come to an agreement with the USA government and the four major carriers to allow them to sell their handsets officially in the country. However, the promotions related to the S9 series remain strong which helped to push sales in both offline as well as online channels during the end of the quarter to streamline the inventory levels. "If Apple and Samsung want to maintain their market positions, they must make their portfolios more competitive".

According to the analysts at the IDC, one major contribution to Huawei's milestone was due to the company adding more premium and top-end features to its flagship phones. The figure is close to Apple's 215.8 million total 2017 shipments and 130.6% of Huawei's 2017 annual figure, calculated from a 2017 IDC report. "Huawei's P20 Pro is the first flagship smartphone model to be equipped with triple cameras, beating competitors to market".

The number of units shipped is important, the the profit that devices bring in is more so.

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