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2 smartphone seller, gains ground in China

2 smartphone seller, gains ground in China

The results for Q2 2018 have Huawei shipping 54.2 million units resulting in a move up to second position behind Samsung in market share. This is a new trend where "affordable ultra-premium" is wooing aspiring rich and young consumers away from more expensive offerings from likes of Samsung and Apple.

While Huawei has leaped into second place, the Chinese smartphone and telecom maker has struggled to gain traction in the USA due to concerns that its technology could be used by the Chinese government to gather intelligence.

The company shipped 54.2 million handsets in the second quarter of 2018, an enormous year-over-year increase of 40.9%, according to IDC. Samsung retained the top spot in the vendors' list, but its shipments fell from 79.5 million units in Q2 last year to 71.5 million units in the same quarter this year.

The latest numbers from Canalys and IDC point Huawei surpassing Apple to become the world's second largest smartphone vendor in Q2, 2018. In a time when Samsung and Apple dominate the premium smartphone market and as handset prices continue to rise, what we need is more competition, not less. It says the global smartphone shipments dropped 2.8% YoY from 360.4 million units to 350.4 million in the second quarter.

After 7 years of Apple-Samsung dominance, Huawei has managed to break the link by launching attractive, premium segment smartphones and capturing the mid-tier segment with its fast-growing Honor sub-brand, Tarun Pathak, Associate Director at Counterpoint Research, said in the report. During the same quarter past year, Apple posted iPhone sales of 41.02 million units.

China and the USA are also embroiled in a trade dispute with both nations imposing tariffs on billions of dollars worth of goods and fighting over technology and patents, which analysts said creates significant uncertainty for all of the major smartphone brands.

In a conference call with reporters Tuesday, Apple CEO Tim Cook noted that the iPhone X has been the top-selling iPhone since its launch. Since its debut in May, we have already seen a fivefold increase in sales vs. its predecessor, the Huawei P10 Plus. The shipments declined by 1.8 percent year-on-year, as 348.2 million units were shipped during the same period last year. Despite their market share declining 10.4 percent in shipments from previous year.

It notes that Huawei beat Apple, to reach the second-ranked position in global shipments.

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