Daily Management Review

Huawei Now Has 42% Smartpohone Market Share In China


Huawei Now Has 42% Smartpohone Market Share In China
Chinese smartphone maker Huawei has a total market share of 42 per cent in its home market after the company managed to ship about 41.5 million smartphones in the third quarter. This rate of shipment also marked a 66 per cent growth year on year for the company.
Despite a general slowdown in the domestic Chinese economy, the strong performance of Huawei during the latest quarter is the sixth straight quarter for the company in which it has managed to achieve a double digit growth in its domestic market.
With the growth of Huawie, the market share of its major rivals in the Chinese smartphone market such as Oppo, Vivo, Xiaomi and Apple have gone down further. In the latest ended quarter, the combined market share of the companies was about 50 per cent compared to about 54 per cent in the second quarter of 2019 and from 64 per cent of the third quarter of 2018.
Huawie managed to enjoy a 25 per cent more market share in China compared to its closest rival in the market, Vivo.
“Huawei’s dominant position gives Huawei a lot of power to negotiate with the supply chain and to increase its wallet share within channel partners,” said Nicole Peng, Canalys VP of mobility.
Nicole Peng said in a statement that with the roll out of the 5G mobile technology, it is likely that Huawei has a greater chance of further consolidating its market position in China because the company is a leader in the area of 5G mobile technology and its operator relationships in 5G network deployment as well as its control and access to the crucial components such as local network compatible 5G chipsets. These facilities are not available with almost all of its local rivals in China.
While Huawie increased shipment, the delivery of new smartphones during the quarter dropped for Vivo, Oppo and Xiaomi even though the companies launched new handsets in the market.
“Smaller vendors hope to leverage 5G to rapidly boost market share given that China major operators have aggressively pushed 5G pre-registration with plentiful discounts and free 5G data allowance, which has resulted in over 10 million subscribers registering an interest to move to 5G,” said Canalys Research Analyst Louis Liu.
5G-capable smartphones priced between $500 and $1000 were also launched by Vivo, ZTE, Xiaomi and Samsung in China apart from Huawei.
It is likely that there would be a rapid drop in the 5G tariffs and device prices in order to attract consumers across the entire Chinese market, believes Canalys, at a level that was seen in the 4G era among the major vendors. Hence, the first movers’ advantage in the 5G sector could also get reduced pretty soon.
A boost to demand and sale of its latest iPhone 11 launched in September helped Apple to maintain the number five position in the Chinese market. The US company noted that about 40 per cent of the third quarter shipments in China were that of the iPhone 11.