Ahead of iPhone 8 launch, Huawei has surpassed Apple in global smartphone sales for the first time, consistently for June and July. According to a research from Counterpoint’s Market Pulse for July 2017, Huawei is now the second largest smartphone vendor globally, after Samsung. Researchers predict strong sales in August for the Chinese vendor, and a hat-trick for Huawei could be on the cards as well.
Counterpoint’s Research Director Peter Richardson attributes Huawei’s success to its strong foothold in home market China, consistent investment in R&D and manufacturing as well as aggressive marketing.
“While this streak could be temporary, considering the annual iPhone refresh is just around the corner, it nevertheless underscores the rate at which Huawei has been growing. However, a weak presence in the South Asian, Indian and North American markets limits Huawei’s potential in the near-to mid-term to take a sustainable second place position behind Samsung. Huawei is over-dependent on its home market China where it enjoys the leadership position and operator-centric markets in Europe, Latin America and Middle East,” said Richardson.
According to Counterpoint’s Associate Director, Tarun Pathak, Chinese smartphone brands have taken lead positions into key markets like China, Europe, Asia, and Latin America which has restricted the growth prospects for leading global brands such as Samsung and Apple. “Chinese brands are growing swiftly thanks not only to smartphone design, manufacturing capability and rich feature sets, but also by out-smarting and out-spending rivals in sales channels, go-to-market and marketing promotion strategies,” noted Pathak.
Oppo has been one of the fastest growing brands globally thanks to its popular R11 and A57 smartphones – the third and fourth bestselling smartphones respectively globally. World’s bestselling smartphone models remain Apple iPhone 7 and iPhone 7 Plus. Other devices include Samsung Galaxy S8, Xiaomi Redmi Note 4X and Samsung Galaxy S8+.
“While Huawei climbed to world’s second largest brand overall, it is surprising to see none of its models break into top ten rankings. This is due to a multiple SKU portfolio that currently lacks a true hero device. While having a diverse portfolio allows Huawei to fight on multiple fronts, it does little to build overall brand recognition, something Huawei badly needs if it is continue to gain share,” senior Analyst, Pavel Naiya said.