Huawei BEAT Samsung For The NUMBER ONE Spot
So about 4 years ago Huawei announced a planto beat Samsung and Apple by the year 2021 to become the world's biggest smartphone maker. They partly did it, I mean in 2018 they beatApple in sales and became the second-biggest smartphone maker. Quickly thereafter they announced a new planwhere they said they would overtake Samsung by the year 2020 for the coveted number onespot.
Well, a couple of years later it looks likeHuawei did exactly what they said they would do. To everyone's surprise, Huawei overtook Samsungfor the very first time in the month of April, a feat that was considered impossible withthe ban in effect. According to Counterpoint Research, Huaweiaccounted for a 21% market share in April while Samsung’s market share was about 17%. Overall, 69.37 million smartphones were shippedacross the globe in April. That represents a massive year-on-year decreaseof 41%. Now, on paper, this looks impressive thatHuawei has managed to achieve a feat that no one thought they would ever do it but whenyou consider why this happened then it doesn't sound that appealing.
You see, markets like India, Europe, NorthAmerica were in complete lockdown in the month of April because of the global pandemic. These three regions are the biggest marketsfor Samsung, due to strict lockdown rules Samsung was able to sell absolutely zero smartphonesin many of these key markets, which is also why sales of Samsung’s Galaxy S20 serieshave remained unconventionally low.
Huawei on the other hand didn't suffer fromlockdown in April because over 95% of their smartphones are sold in China. China as you know is the first country togo into lockdown which means by march the economy of China was already recovering andby April it was back in full force. This favored Huawei as sales of Samsung smartphoneshave declined drastically in other markets as purchasing smartphones wasn't a priorityfor people in those regions in the month of April.
Basically the time when the demand for Samsungphones decreased due to the lockdown, Huawei’s phones were widely been available for usersto buy in China. However, the international markets are normalizingwhich means Samsung’s shipments will bounce back in the coming months, which also meansHuawei’s success is not guaranteed in the long run and may not continue in the nextmonth or in the next quarter. By the way, Even with the ban intact, Huaweihas been selling hundreds of millions of smartphones, but the majority of which is attributed tothe strong sentiment among the Chinese consumers, who had given preference to Huawei productsafter the US ban.
Because China is a huge smartphone market,success there usually helps vendors in the global market. But here's the thing, that patriotic sentimentis only going to last for long, and once Huawei loses that factor, it's only downhill fromthere. This year will be an uncertain sales adventurefor all the top manufacturers, and it’s difficult to predict where they will end up,but if I were to say it's more than unlikely for Huawei to replicate what they did in Aprilas Samsung’s key markets are beginning to recover and hence Samsung’s shipments areexpected to recover too. With that being said, let me know what doyou think about this down in the comments and as always I'll see you tomorrow...Peaceout!
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