New Delhi: China’s top telecom company Huawei surpassed Apple Inc to become the second largest smartphone brand globally in 2019 despite US sanctions, said a study by Hong Kong based analytics firm Counterpoint Research. The company shipped 238.5 million handsets in 2019, following close on the heels of world leader Samsung that sold 296.5 million units. Apple was at the third spot, having shipped 196.2 million units last year.
The world’s most populous country alone accounted for over 60% of Huawei’s global shipments. Last year, the US imposed restrictions on the company, barring American suppliers from selling goods and services to it, citing national security concerns. Although Huawei has developed its own operating system called Harmony OS with its own app store, without access to Google Play Store and Google apps, it had become difficult for the company to compete with rivals outside China.
Huawei commands 40% share in China’s smartphone market, the world’s largest.
In a three-month period, the Cupertino-based giant surpassed its South Korean rival to gain the top slot in Q4 (October-December) CY19. During the period, Apple shipped 72.9 million smartphones while Samsung shipped 70 million units. Apple’s performance was driven by sales of iPhone 11 series which beat market expectations. iPhone revenues were up year-on-year for the first time since September 2018.
Apple services, particularly music, cloud and Apple Care also contributed to revenues with 17% YoY growth in 4Q 2019.
Samsung’s shipments were flat during the quarter, but the company was the top player in the 5G category, shipping over 6.5 million 5G capable devices in 2019, the study said.
Overall, the global smartphone market fell 1% year-on-year in 2019, the second consecutive year of decline.
“There have been growing tensions among several countries that have impacted the smartphone market. For example, the US pressure on Huawei, and tensions between Japan-Korea that led to uncertainties in the memory market. Supply chains have been upset, causing various companies to rethink their strategies and reduce dependence on single markets,” Varun Mishra, Research Analyst, Counterpoint Research said in a statement.
However, the decline was less steep than the 4% fall in 2018. According to the report, the smartphone market actually grew 3% YoY in Q4 2019, hinting at a possible recovery in 2020.
Mishra feels 2020 will likely see efforts to further diversify investments across geographies to mitigate risks even as the novel coronavirus outbreak in China poses threats to supply chains.
Source: Livemint
