Certain western governments might be uneasy about buying Huawei kit, but phone buyers flock to the brand.
The latest phone sales data from Gartner shows Huawei has won market share from Samsung and Apple. In the fourth quarter of 2018 Huawei sold a shade over 60 million phones. This compares with Apple’s 64 million and Samsung’s 71 million units.
The fourth quarter is usually the most important period for phone sales.
Huawei growing fast
Huawei sales grew nearly 40 percent compared with the same period a year earlier.
Perhaps the most remarkable aspect of Huawei’s success is that it is, in effect, locked out of the USA.
Gartner senior research director Anshul Gupta says; “Beyond its strongholds of China and Europe, Huawei continued to increase its investment in Asia-Pacific, Latin America and the Middle East, to drive further growth”.
Much of the company’s success came from lower price phones. Gupta says: “Huawei also exploited growth opportunities through continued expansion of the Honor series in the second half of 2018, especially in emerging markets, which helped Huawei grow its market share to 13.0 percent in 2018.”
Both Samsung and Apple sold fewer phones in the period than the same time a year earlier. Both companies had falling market share.
Samsung, Apple stumble
Apple suffered a year-on-year fall in sales of almost 12 percent. The company previously said this was largely due to falling sales in China, although numbers fell everywhere except North America and the wealthier parts of Asia-Pacific.
Samsung’s high-end phones failed to turn buyer’s heads. The company strengthened its mid-range models during the period.
Chinese brand Oppo, also enjoyed growth. It is now the world’s number four phone brand by unit sales. It has a market share of 7.7 percent.
The phone market has stopped growing. In the fourth quarter sales were 0.1 percent higher than a year earlier, essentially flat.
Gartner says the mature Asia-Pacific markets (which includes Australia and New Zealand) declined 3.4 percent.
While raw unit numbers excite many phone industry observers, the more important question is which brands are making money.