NAIROBI, KENYA, NOVEMBER 7 — Chinese multinational-Huawei has toppled Apple as a top global Smartphone dealer for the second straight quarter as the company registered a strong 13 per cent year-on-year growth.
The global provider of information and communications technology (ICT) infrastructure and smart devices remains second in global smartphone shipment, latest industry data by International Data Corporation (IDC) , IHS Markit and Counterpoint show.
Huawei overtakes Apple again and remains the world’s second largest smartphone vendor for two consecutive quarters, with the strongest market share of 23 per cent among the top six leading global companies.
Industry data by IDC however shows smartphone shipment volumes dropped by 5.9 per cent in quarter three where vendors shipped 355.2 million units, down from 377.8 million units shipped in a similar period last year, leading to a fourth-quarter loss.
“This casts doubt on the smartphone market. China represents roughly one third of smartphone share. It has experienced decline since quarter two 2017, and quarter three 2018 is the sixth quarter where the market sees contraction,” the report states.
However, Huawei is gaining momentum. The company secured the second spot for another quarter.
While its market share was down slightly from last quarter’s 15.9 per cent, Huawei still shipped 52 million handsets and grabbed 14.6 per cent global market share.
This is up from a market share of 10.4 per cent the company had in a similar period last year.
‘From a product perspective, its P-series and Mate-series are keeping it as competitive as ever. And Honor, which focuses on young consumers through online channels, has continued to sell well in many markets,” the market report indicates.
Huawei’s success can been pegged on its persistent efforts in Research and Development (R&D) and customer experience.
“Strong R&D for great innovation R&D is one of Huawei’s keys to success,” analysts note in the report.
In 2017, Huawei invested Chinese Yuan 89.7 billion into research and development, accounting for 15 per cent of its total revenue.
It’s ranked sixth in terms of global R&D investment. A few months ago, the European Commission released the “2017 Global Enterprise R&D Investment Rankings”, covering 2,500 global enterprises including 481 Chinese companies.
Among the top ten Chinese firms, Huawei ranked first with an annual R&D investment of €10.4 billion (euros).
The company has set up 14 R&D centers worldwide and 36 joint innovation centers. Huawei has been leading the industry regarding technology innovation, chipset R&D, and AI intelligence.
Thanks to its premium products, this smartphone giant has won both the consumer and market. Richard Yu, CEO of Huawei Consumer Business Group, said the global shipment of Huawei smartphones had exceeded 100 million by July 18.
That means Huawei is well positioned to hit the 200 million annual target.
“Everything Huawei does is about improving customer experience. Innovation never stops at Huawei. Innovation for inspiring customer experience – that is Huawei’s secret ingredient to market success. But there is no shortcut to good customer experience. The only way forward is to deliver better products and services, and show customers how much Huawei cares about them, and how closely Huawei listens to their voices,” Yu said.