Huawei, as of Thursday’s independent market research’s stats, has been promoted to the top tier of selling the most smartphones in the world.
This record has dethroned Samsung from it’s seemingly perennial top place in the market. And that record is an overwhelming amount of earnings despite the coronavirus pandemic. Huawei has been recording a whopping 55.8 milion phone sales in three months as of June, beating Samsung to a margin of about 2.1 million shipping, according to the Canalys report. “Taking first place is very important for Huawei,” said Canalys analyst Mo Jia. “It is desperate to showcase its brand strength to domestic consumers, component suppliers and developers.”
A years-long US pressure campaign against Huawei has handicapped the Shenzhen-based firm’s global business.
It is in no exaggeration to say that Huawei has weathered some serious debacle along the way, as mounting pressures from the US government kept the company at ill ease during the last year.
The record is a decline from last year, of about 5% from the last annual record. Samsung suffered a more drastic fall of 30%, which makes the company the champion of survival in these trying times. In other words, if it hadn’t been for the pandemic,Huawei would have never made the momentum to overcome.
The overwhelming difference in sales is all due to the fact that Huawei gets 70% of sales from the Chinese market, which has been recovering from the losses of the pandemic faster than the developing nations hit later. Samsung, in the meanwhile, has a minimal share of the market pie over in China.
“It will be hard for Huawei to maintain its lead in the long term. Its major channel partners in key regions, such as Europe, are increasingly wary of ranging Huawei devices, taking on fewer models, and bringing in new brands to reduce risk.
Strength in China alone will not be enough to sustain Huawei at the top once the global economy starts to recover,” he said. “Our business has demonstrated exceptional resilience in these difficult times,” Huawei spokeswoman Evita Cao said.
However, the questions still remain as to whether they would be able to sustain their momentum.
Samsung reported operating profit of 8.15 trillion won ($6.8 billion) for the three months that ended in June, up more than 23% compared to the same period last year. Samsung said sales fell about 6% to 53 trillion won ($44.6 billion). Shares in Samsung were last up 0.7% in Seoul. South Korea’s Kospi (KOSPI) rose 0.1%.
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Replaced!