Huawei grabbed top spot in the smartphone shipment rankings for the first time, with Q2 the first quarter in nine years in which a company other than Apple or Samsung led the market, Canalys claimed.
The research company placed Huawei shipments at 55.8 million devices, down 5 per cent year-on-year but above Samsung’s 53.7 million (down 30 per cent).
It is a rare bit of good news for Huawei during ongoing scrutiny [1] of its security by a number of countries.
Canalys noted while US restrictions resulted in a 27 per cent drop in Huawei’s overseas shipments, its domestic business thrived, growing 8 per cent and accounting for more than 70 per cent of its total.
Covid-19 winner
Senior analyst Ben Stanton said Huawei’s device business emerged as a major winner from Covid-19 (coronavirus) and it would not have achieved top spot if it wasn’t for the pandemic.
“Huawei has taken full advantage of the Chinese recovery to reignite its smartphone business. Samsung has a very small presence in China, with less than 1 per cent share, and has seen its core markets such as Brazil, India, the US and Europe ravaged by outbreaks and subsequent lockdowns.”
Analyst Mo Jia added taking top spot was very important for Huawei, as it looks to showcase its brand strength to domestic consumers, component suppliers and developers.
However, it is unlikely the vendor will maintain the lead long-term.
“Its major channel partners in key regions, such as Europe, are increasingly wary of ranging Huawei devices, taking on fewer models, and bringing in new brands to reduce risk. Strength in China alone will not be enough to sustain Huawei at the top once the global economy starts to recover,” Jia explained.
[1] https://www.mobileworldlive.com/featured-content/home-banner/rivals-circle-as-huawei-thrown-out-of-uk-5g/
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