Huawei rings up record 42% share in China

Huawei's new flagship store in Shenzhen. While the Chinese smartphone market contracted by 3 per cent in the third quarter compared with a year earlier, Huawei smartphones made up 41.5 million of the 97.8 million shipped in the period.
Huawei's new flagship store in Shenzhen. While the Chinese smartphone market contracted by 3 per cent in the third quarter compared with a year earlier, Huawei smartphones made up 41.5 million of the 97.8 million shipped in the period.PHOTO: AGENCE FRANCE-PRESSE

Domestic sales in Q3 more than offset slump in global shipments

SHENZHEN • Huawei Technologies lifted its share of China's smartphone market to a record 42 per cent, with third-quarter shipments rising by two-thirds as domestic consumers rallied behind it after US sanctions, data released yesterday showed.

Huawei strengthened its dominance of the world's biggest smartphone market even as the Chinese company was all but banned by the United States in May from doing business with American companies, significantly disrupting its ability to source key parts.

The world's No. 2 maker of smartphones was granted a reprieve until next month. However, promotions and patriotic purchases have driven its smartphone sales in China, helping it more than offset a shipments slump in the global market.

While the Chinese smartphone market still contracted by 3 per cent in the third quarter compared with a year earlier, Huawei smartphones made up 41.5 million of the 97.8 million shipped in the period, according to data from market research firm Canalys.

"Huawei opened a huge gap between itself and other vendors," said Canalys vice-president of mobility Nicole Peng.

"Its dominant position gives Huawei a lot of power to negotiate with the supply chain and to increase its wallet share within channel partners."

Huawei's growth came at the expense of main rivals Oppo, Vivo, Xiaomi and Apple, which together accounted for half of the market in the third quarter, down from 64 per cent a year earlier.

DOMINANT POSITION

Huawei opened a huge gap between itself and other vendors. Its dominant position gives Huawei a lot of power to negotiate with the supply chain and to increase its wallet share within channel partners.

MS NICOLE PENG, Canalys' vice-president of mobility.

The third-quarter sales also mark Apple's weakest quarter in China for five years, said Ms Peng.

However, she said Apple received a boost from the launch of the iPhone 11 last month, with customers willing to wait two to three weeks to receive shipments of the newer models.

Huawei said it has sold more than 200 million phones globally this year, 64 days earlier than last year. Its profits remain resilient, with revenue jumping 27 per cent in the third quarter.

Huawei's flagship Mate 30 Pro 4G version, which it unveiled last month, was not a big factor in its third-quarter success, Canalys said, with most people waiting for the 5G version to launch later this year.

"Huawei is in a strong position to consolidate its dominance further amid 5G network roll-out, given its tight operator relationships in 5G network deployment and control over key components such as local network compatible 5G chipsets compared with local peers," said Ms Peng.

"This puts significant pressure on Oppo, Vivo and Xiaomi, which find it very hard to make any breakthrough."

REUTERS

A version of this article appeared in the print edition of The Straits Times on October 31, 2019, with the headline 'Huawei rings up record 42% share in China'. Print Edition | Subscribe