For the first time in history, following a recent report from analyst firm Canalys. Huawei has imported so many smartphones worldwide over a quarter more than any other company. For so long now, Huawei has suppressed ambitions to take over Samsung as the world’s largest smartphone seller. And also going by the total number from Canalys, that is exactly what occurred during the April-June period earlier this year.
However, this does not mean that Huawei will be at the top forever because the whole thing was as a result of the Coronavirus pandemic.
Canalys’ Comment concerning Huawei
According to Canalys, Huawei shipped in 55.8 million mobile phones under 3 months and this is actually down 5 percent year by year. Whereas Samsung slid to 53.7 million by 30 percent. Over 70 percent of Huawei,s products are being sold out in China now, and this hasn’t been disturbed by COVID-19 as most of Samsung’s main markets. Currently, Samsung is not really recognized in China.
Huawei’s global smartphone and Telecom gear business continuously experience fallout from US sanctions. Which removed the company from key American tech and supplies.
Jia’ Comment concerning Huawei
Following what He said:
Though, the newest smartphones of Huawei are very much less attractive to international buyers. With no access to well know Google applications like Google Maps, Gmail, and YouTube also. And this will make it so hard for Huawei to take the position of the number 1 global.
He further added:
“It will be hard for Huawei to maintain it’s lead in the long term. It’s 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”.
Evita Cao’s Comment about Huawei
Evita Cao’s (Huawei’s Spokeswoman) said:
“Our business has demonstrated exceptional resilience in these difficult times”. However, Evita did not reply to questions concerning how Huawei can manage its lead moving forward
Huawei’s success came on the very day Samsung placed a big profit bump for the second quarter. With the demands of strong chip assisting the company weather the fallout from the COVID-19 pandemic.
Samsung announced its operating profit of 8.15 trillion won ($6.8 billion) for the three months that finished in the month of June. Up to over 23% compared to this same period as last year.
Samsung mentioned that sales went down to about 6% to 53 trillion won ($44.6 billion).
Also, Samsung’s shares were last close to 0.7% in Seoul. South Korea’s Kospi (KOSPI) rose 0.1%.
Even with the double-digit fall in the annual smartphone shipments for the quarter which was recognized by Canalys report. Samsung said that the unit still remained productive thanks to savings in marketing costs. (Samsung does not leaks out specific concerning the shipments of its smartphone, however, noted that they refused).
For the second half of this year (2020), Samsung cautions saying that “uncertainties related to Covid-19 linger” for its mobile occupation.
The Research firm’s Comment
Following the research firm Crisp idea:
This might be enough to draw the company to revenue losses for the year.
Following a note that the Crisp Idea analyst wrote this month (earlier):
The consumer electronics unit, including TVs and Smartphones, is “expected to decline significantly as COVID-19 affects demand and leads to store and plant closures globally”.
Analysts at IDC also mentioned in a month last month that the shipments of smartphones globally are supposed to decrease to about 18% in the first half of the year as the Coronavirus pandemic extends. Thereby, disturbing consumer spending.
The Market Research Firm
The market research firm added also that worldwide shipments of the smartphone are not supposed to fall back to growth until the first quarter of this year (2020).
This will also affect the memory chip business of Samsung. The reason is that the company provides chips for smartphone rival companies, including Huawei and Apple (AAPL).