Huawei smartphone shipments soar 44% in 2015

A woman holding a Huawei Technologies Ascend P7 smartphone.
A woman holding a Huawei Technologies Ascend P7 smartphone. PHOTO: BLOOMBERG

HONG KONG (REUTERS) - Huawei Technologies has become the first Chinese handset vendor to ship more than 100 million smartphones annually, defying a market slowdown to challenge leaders such as Samsung Electronics and Apple.

The Shenzhen-based company said on Wednesday (Jan 6) that its smartphone shipments rose 44 per cent annually to 108 million in 2015, thanks to strong sales in China and Western Europe as it seeks to shed its budget supplier image to target higher-margin premium models.

Hauwei's upbeat performance comes at a time when industry leaders are facing a tough year ahead. Samsung said it expected a difficult business environment in 2016 due to weak global economy and heightened competition, while a Nikkei report said Apple was expected to cut production of its latest iPhone models by about 30 per cent in the January-March quarter due to mounting inventories.

Analysts said it was too early to say if Huawei could become a serious rival to Samsung and Apple, as smaller Chinese players such as Xiaomi Inc and Lenovo Group Ltd often swapped rank in price wars.

"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."

Huawei remains a distant third, with a smartphone market share of 7.5 per cent in the third quarter after Samsung's 23.8 per cent and Apple's 13.5 per cent, according to research firm IDC.

Huawei said revenue for its consumer business group, which sells products such as smartphones and tablets, jumped 70 percent year-on-year to US$20 billion in 2015.

Worldwide smartphone shipments are expected to grow 10.4 per cent in 2015, down from 27.5 per cent in the previous year, according to IDC.