Huawei Technologies Co (HWT.UL) has turn out to be the first Chinese handset seller to ship over 100 million smartphones every year, challenging a market slowdown to defy front-runners such as Samsung Electronics Co and Apple Inc.
Huawei Smartphone Shipments Increase by 44% in 2015
On Wednesday the Shenzhen-based company informed that its smartphone shipments rose 44% annually to 108 million in 2015, due to resilient sales in China and Western Europe as it pursues to shed its budget supplier image to mark higher-margin best models.
The positive performance of Huawei arises at a time when industry leaders are facing a hard year ahead. Samsung informed that it projected a demanding business environment in 2016 due to feeble global economy and intensified competition, whereas a Nikkei report revealed that Apple was expected to reduce production of its newest iPhone models by almost 30 percent in the January-March quarter due to growing inventories.
Analysts are of the view that for the time being it was too early to guess whether Huawei could become a serious competitor to Samsung and Apple, as smaller Chinese players such as Xiaomi Inc (XTC.UL) and Lenovo Group Ltd often changed rank in price combats.
“In China it’s true that Huawei grew tremendously over the past six months, but it’s a bit of a dog fight within the Android ecosystem.”
Kantar Worldpanel ComTech analyst Carolina Milanesi said.
“Huawei’s going after Xiaomi and all the other smaller Android players.”
According to research firm IDC, Huawei residues a distant third, with a smartphone market share of 7.5 percent in the third quarter after Samsung’s 23.8 percent and Apple’s 13.5 percent.
Huawei informed that revenue for its consumer business group, which sells products such as smartphones and tablets, hurdled 70 percent year-on-year to $20 billion in 2015. International smartphone shipments are likely to raise 10.4 percent in 2015, down from 27.5 percent in the preceding year, according to IDC.