Tag Archives: huawei

Samsung Market Share Continues To Decline, Xiaomi Soars

Samsung continues to see their smartphone market share decline. The Galaxy S5 has sold well below expectations and the South Korean giant has also struggled in China where Xiaomi took the number 1 spot from Samsung earlier this year.

The latest numbers from research firm Gartner reveal that Samsung continues to struggle while the growth continues for Xiaomi.

In the third quarter of 2014 overall smartphone sales increased by 20% thanks to demand in emerging markets.

Smartphones which account for 66% of total mobile sales are gaining traction in emerging markets, especially since the price difference to feature phones continues to decrease.

Samsung is still the largest smartphone maker but has lost almost 8% within a year. Xiaomi has seen the largest growth and are now the 4th largest smartphone manufacturer as market share increased from 1.5% to 5.3%. Huawei holds the third spot but Xiaomi is expected to overtake Huawei as they are growing quicker and are only 0.1% behind. Considering Xiaomi is only for sale in a number of regions the future growth potential is enormous.

Apple sales grew 26% in the third quarter thanks to the new iPhone 6 and iPhone 6 Plus. Gartner expects Apple to have the best quarter ever in terms of iPhone sales during the fourth quarter.

Worldwide Smartphone Sales to End Users by Vendor in 3Q14 (Thousands of Units)

Company

3Q14

Units

3Q14 Market Share (%)

3Q13

Units

3Q13 Market Share (%)

Samsung

73,212.4

24.4

80,356.8

32.1

Apple

38,186.6

12.7

30,330.0

12.1

Huawei

15,934.9

5.3

11,665.7

4.7

Xiaomi

15,772.5

5.2

3,617.5

1.5

Lenovo

15,011.9

5.0

12,882.0

5.2

Others

142,891.6

47.5

111,445.0

44.5

Total

301,009.9

100.0

250,297.0

100.0

Source: Gartner (December 2014)

“Over the holidays we expect record sales of the iPhone 6 and iPhone 6 Plus, but we should not underestimate the Chinese vendors and local brands,” said Annette Zimmermann, research director at Gartner. “Chinese players will continue to look at expanding in overseas emerging markets. In Europe prepaid country markets and attractive lost-cost LTE phones will also offer key opportunities for these brands.” Gartner expects sales of smartphones to reach 1.2 billion units in 2014.

In terms of OS market share it is no surprise that Android is dominating with 83.1%. iOS holds 12.7% while both Windows and Blackberry declined.

Worldwide Smartphone Sales to End Users by Operating System in 3Q14 (Thousands of Units)

Operating System

3Q14

Units

3Q14 Market Share (%)

3Q13

Units

3Q13 Market Share (%)

Android

250,060.2

83.1

205,243

82.0

iOS

38,186.6

12.7

30,330

12.1

Windows

9,033.4

3.0

8,916

3.6

Blackberry

2,419.5

0.8

4,401

1.8

Other OS

1,310.2

0.4

1,407

0.6

Total

301,009.9

100.0

250,296.8

100.0

Samsung Galaxy S5 Sales Way Below Expectations

Overall results for Samsung have not been impressive lately, as the electronics giant saw both revenue and profit decrease as the overall smartphone market share dropped from 32% to 25%. In China Xiaomi has taken the top spot and competition is increasing from all sides not just Apple with Motorola, LG and Huawei increasing their market share.

So while the iPhone 6 gave Apple a record quarter and 4 million devices were sold the first day and 10 million over the first weekend, Samsung is struggling with sales of the flagship Galaxy S5.

galaxy s5

According to the Wall Street Journal, a big reason for the bad numbers of the mobile division is the fact that the flagship Galaxy S5 is selling well below expectations. Sales for the last three month came in at 12 million units, 40% below what the company had forecasted. The Galaxy S4 sold 16 million units in the same time period.

According to WSJ, sales in China has declined by 50%, the only market which remains stable is the U.S.

Samsung is now increasing their marketing spend and plan to offer more discounts during the holiday season in an attempt to win back market share and clear warehouses.

Huawei Invests $4 Billion in Broadband Technology

Huawei today announced a massive investment in broadband technology, a whopping $4 billion over the next three years.

The goals is to provide improved service experience to end users. The emerging and rapidly growing 4k video industry is a driving factor as Huawei is looking to expand the pipeline capacity.

Huawei Products and Solutions President, Mr. Ryan Ding said, “Huawei has always been focused on customer needs and adding value through core technologies and innovation. As an information and communications technology leader, Huawei recognizes Fixed Broadband as a key direction for strategic investment and will continue to increase the scale of investment in related technologies, core products and solutions. Our investment will further develop technological advances, help customers increase their competitiveness and decrease overall operating costs.”

Huawei predicts the next three years will be a turning point for FBB development. While the outlook for the industry remains bright, there are areas where industry-wide cooperation is essential. Huawei hopes that through its significant investment and key partnerships it can build a win-win ultra-broadband ecology, furthering the systematic growth of the global FBB industry.

 

Huawei beats Apple – Flagship Ascend P7 Officially Showcased with Sapphire Display

Almost a month ago we already reported that Huwai would launch the new updated version of the flagship Ascend P7 with a  sapphire display. Now they have officially showed off the new device during IFA in Berlin.

huawei-ascend-p7-sapphire-edition

Huawei is growing at an impressive rate, having almost doubled the number of units they shipped in the first six month compared to last year. The goal is to ship 80 million smartphones this year, 20% of that in the high-end segment. So it was important for the company to show the Ascend P7 with a sapphire display ahead of competitors like Apple to give strengthen their position and image amongst consumers in that segment.

The 5″ device also has a ceramic cover on the back to make it more durable. It features a 1.8 GHz processor, 16 GB of storage and a 13 MP rear camera. One area where the Ascend P7 really stands out is the front camera – heads of selfie lovers are already spinning just thinking about an 8 MP front camera.

Price and availability have not been confirmed yet.

Apple Event confirmed for September 9th – iPhone 6 and iWatch expected to be announced

Apple has now officially send out an invitation to press for an event in Cupertino on September 9th. As we reported previously, the company is expected to release the new iPhone 6 during the event. In the last few days, new rumors have emerged and it now looks like Apple is also going to be unveiling the iWatch, which wasn’t expected to be released until October. If that is the case, it is going to be one of the biggest and most important events for Apple.

The iPhone 6 has to be a real game changer, something the iPhone 5 really wasn’t. LG, HTC and Huwaei are all making headway in the space as Android dominates the overall smartphone market.

The 5.5″ model of the iPhone 6 will position Apple in a segment they have missed out on in recent past so incremental business can be expected from that. A larger model alone will not do the trick however, we need to wait and see what innovative features aside from the sapphire display the new flagship model will have.

It will be more interesting to see though if Apple can come out with a smartwatch that appeals more to consumers than the LG G Watch R and Moto 360.

Analysts are positive the iWatch will be a success. Morgan Stanley predicts that Apple will sell 60 million units in the first year alone!

 

New Huawei Ascend P7 will feature a Sapphire Display

Huawei is a rising brand in the smartphone market. The Chinese electronics giant has shipped 34 million phones in the first six month of the year and most recent data from research firm IDC shows just how rapidly they are growing. 20.3 million of the total number so far this year was shipped during the second quarter. Huawei now has a market share of 6.9%, the year over year growth on number of units shipped is a staggering 95.1%.

As we reported on previously, most of the sales has come from the entry level and mid range phones. Huawei wants to ship 80 million phones this year and 20% of these will be high-end models if their strategy plans out.

The company needs to continue to invest when it comes to positioning themselves as a premium brand and innovating on the product side.

With the new flagship Ascend P7 model they seem to be doing just that. Just like the iPhone 6, the P7 will feature a sapphire display.

In an interview with 21st Century Business Herald, Yu Chengdong (Device Chairmain at Huawei) showed a prototype of the new device and also mentioned that the company will continue to shift their focus to the high-end market as they need to start increasing their profit long term, something which is difficult to do in the lower end of the market.

He also mentioned that cloud services and big data are continuing to make smartphones better and Huawei is investing a lot in this area to ensure it can differentiate from competitors and bring out new features for consumers.

Samsung struggling in low-end market, Revenue, Profits and Market Share Decline

Samsung Electronics just released their quarterly financials and disappointed on all fronts. It was the worst quarter in two years as the South Korean giant saw revenue and profits decline sharply and their overall smartphone market share dropped significantly.

Highlights:

  • Revenue: $50.86 billion (decrease of 9%)
  • Operating Profit: $6.99 billion (decrease of 25%)
  • Net Income: $6.11 billion (decrease of 20% compared to last year)
  • 95 million mobile handsets sold, 80% smartphones

 

According to IDC Research Samsung dropped from 32 to 25% in overall market share. While they are still the largest smartphone brand the challenge becomes clear when you look at the fact that the overall market has grown by 23% since last year while the number of units Samsung shipped declined by 4%.

IDC reports that Huawei and Lenovo were the two brands that drove the increase in the market, especially in emerging markets and the low-end segment. That is a market which Samsung has struggled to capture so far. Huawei is gaining market share quickly, so far this year they have shipped 34 million phones and Nokia has been successful with their entry level Lumia models in emerging market as well.

Higher than expected marketing expenses also impacted the button line. The company said that it was necessary to increase marketing efforts in order to clear inventory ahead of new product launches.

They didn’t give many details about the new models other than saying several would be coming in the next few month including a new flagship with a large screen, new design and material.

Let’s compare the financials to Apple as they reported their quarterly results earlier this month: While Apple generated less revenue ($37.4 billion), they managed to generate more net profit, $7.7 billion. Apple sold fewer phones than Samsung (35.2 million) but there are two fundamental differences here: Apple can show year over year growth, showed their strongest iPhone sales for the current period and unlike Samsung the company has not released new phones every quarter. With the upcoming iPhone 6 we should see the iPhone units increase dramtically.

Samsung is facing stiff competition from all sides. There is no doubt the iPhone 6 will be a success , at least in terms of sales, companies like Huawei, HTC and Lenovo are investing big in growing their market share in the high-end segment and Samsung has not been able to really compete in emerging markets with low-end models making up a majority of the smartphone sales.

The new flagship will be important to defend their leading position in the high-end space while they also need to come out with compelling models in the mid- and low-end segment.