In Q2 Smartphone Market, Huawei Surpasses Samsung... Will It Remain a 'Brief No.1'?

[Asia Economy Reporter Joselgina] According to an analysis, Chinese company Huawei surpassed Samsung Electronics for the first time to become the world's number one in smartphone shipments in the second quarter. Amid the global smartphone market freezing due to the direct impact of the novel coronavirus disease (COVID-19), it is evaluated that Huawei benefited from so-called 'patriotic consumption' by Chinese consumers. However, since more than 70% of shipments are concentrated in the Chinese market, there are repeated assessments that this may be a 'one-time number one'.

On the 29th (local time), US economic media CNBC cited a report from market research firm Canalys, stating that Huawei's smartphone shipments in the second quarter recorded 55.8 million units, down 5% from the previous year. During the same period, Samsung Electronics, ranked second, shipped 53.7 million smartphones, a 30% sharp decline compared to a year ago.

Canalys said, "This is the first time Huawei has recorded number one," adding, "It is the first time in nine years that a company other than Samsung Electronics or Apple has topped the quarterly record."

Ben Stanton, senior analyst at Canalys, described it as "a surprising result that was not expected just a year ago," and said, "It would not have happened if it were not for COVID-19." He added that Huawei is making the most of the advantage of China's economic recovery to reignite its smartphone business. He explained that China's economic growth rate, which had fallen to -6.8% in the first quarter, showed a full-fledged recovery from April, acting as a positive factor for Huawei.

However, Canalys pointed out that since more than 70% of Huawei's smartphones are sold in mainland China, it is unlikely that Huawei will maintain the number one position in the global smartphone market. While smartphone shipments in China increased by 8% year-on-year, overseas markets recorded a 27% decline. CNBC reported, "Due to US sanctions, Huawei is facing difficulties in its global business, so most of its sales came from China."

It is also negative that the atmosphere of avoiding Huawei, which has been embroiled in security controversies in major regions such as Europe, is spreading. According to market research firm Counterpoint Research, Huawei's market share in the European smartphone market sharply dropped from 22% in the second quarter of last year to 16% in the second quarter of this year.

Mo Jia, an analyst at Canalys, pointed out, "In major regions such as Europe, there is increasing reluctance to use Huawei equipment, and new brands are being introduced to reduce risks," adding, "When the global economy recovers, China's power alone will not be enough to keep Huawei at the top."

This content was produced with the assistance of AI translation services.