Huawei Surpassed Apple to Become the World’s Second Largest Smartphone OEM

BY Rajesh Pandey

Published 1 Aug 2018

The latest numbers from Canalys and IDC point Huawei surpassing Apple to become the world’s second largest smartphone vendor in Q2, 2018. The company shipped 54 million smartphones in the quarter ending April-June, up 41 percent from last year.

In the same time period, Apple shipped 41 million iPhones thereby registering a mere 1 percent YoY growth. As for market leader Samsung, it saw its shipments decline by 8 percent to 73 million.

Huawei’s strong performance can be attributed to its latest flagship handset, the P20, which has been selling strongly. It is estimated that Huawei has shipped 7 million units of the P20 and P20 Pro combined since their launch. The company’s online-only Honor sub-brand has also been doing extremely well in China and Europe, and it now makes a significant contribution to the total number of smartphones that Huawei ships every quarter.

Huawei Apple

Huawei’s impressive performance does not mean Apple had a bad quarter. Despite the iPhone X receiving a lukewarm response, the company saw a 1 percent increase in its iPhone shipments during Q2, 2018. Plus, the iPhone X has helped push Apple’s ASP up and generated more profits for it. And despite its $999 price tag, the handset has continued to remain the most popular iPhone every quarter since its release last year. It is also important to note that Q2 has seasonally been weak for Apple since this is the last quarter before it unveils its yearly iPhone refresh, and thus, many potential buyers end up holding back on their purchase.

With Apple expected to unveil a trio of new iPhones in September, including a budget 6.1-inch LCD variant, the company is all set to reclaim its position in the smartphone market from Huawei in Q3. The launch of a cheaper iPhone will give Apple’s smartphone business a volume boost that should comfortably place it in the second position even in the offseason.

[Via IDC, Canalys]