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Huawei’s Smartphone Business Grows Faster Than Competitors

October 27, 2015 - Written By Kishalaya Kundu

The fact that Huawei is now one of the mainstream Android manufacturers is well-established, what with Google itself handing over manufacturing duties of its flagship Nexus 6P to the Chinese telecom equipment and consumer electronics major. The company has also been reportedly making huge strides in its home base of China, having already overtaken Xiaomi as the country’s largest Android handset manufacturer, according to some reports. The company is the world’s third largest smartphone maker currently after Samsung Electronics and Apple Inc. although, with sales of about $7 billion this last quarter, the company’s overall market is still about a fifth of that of Samsung’s and Apple’s, according to research firm Canalys.

The success that Huawei seems to be enjoying this year is believed to be largely on the back of its ‘Honor’ range of devices, which have been giving most other device makers in China – and elsewhere – a run for their money. Now, the latest report from Reuters seems to indicate that analysts are tipping the company to outpace the growth of virtually all other smartphone makers this year to become the fastest growing smartphone manufacturer in the world. According to them, the company’s increasing sales at the premium end of the market and its strong relations with carriers both at home and abroad are reasons enough to be optimistic about the company, going forward. However, for all its success in China and Europe, Huawei continues to struggle in the US, even though it has been rolling out new devices in the country in the wake of the controversy surrounding its products when a Congressional report expressed concerns regarding its products, invoking national security issues.

Earlier on Tuesday, Huawei declared its Q3, 2015 results, which showed a 63 percent YoY increase in the company’s global smartphone shipments to 27.4 million devices, putting it in line to sell over 100 million smartphones this calendar year, which would be a 33 percent increase over and above the company’s 2014 sales. The company’s Q3 sales were reportedly 81 percent higher in China and 98 percent higher in Europe on a year-on-year basis. The company is said to have shifted not just mid-range and entry-level handsets, but also premium ones, with about 25 percent of overall shipments believed to be premium, high-margin products, which seems to have added to the air of optimism surrounding the company, as far as analysts are concerned. According to Ms. Nicole Peng, Asia Pacific director at research firm Canalys, “It’s hard to find a solid contender to Huawei for the top three position in the short term. That’s impressive growth”.