Thu, May 02, 2019 - Page 10 News List

Huawei passes Apple in tough smartphone market

AFP, SAN FRANCISCO

A Huawei Technologies Co Ltd advertisement is pictured at an EE Ltd shop in London, England, on Monday.

Photo: AFP

Smartphones made by China-based Huawei Technologies Co Ltd (華為) outsold Apple Inc’s iPhones in the first quarter of this year, seizing the California company’s second-place spot in a tightening smartphone market dominated by Samsung Electronics Co Ltd, a tracker said on Tuesday.

A total of 310.8 million smartphones were shipped globally in the first three months of this year in a 6.6 percent decline from the same period last year, preliminary data from Chinese-owned International Data Corp (IDC) showed.

It was the sixth consecutive quarter of decline for global smartphone shipments, the market tracker said.

IDC saw the results as a sign that this year would be another down year overall for smartphone shipments, apart from strong growth by Huawei.

“It is becoming increasingly clear that Huawei is laser-focused on growing its stature in the world of mobile devices, with smartphones being its lead horse,” IDC mobile device program director Ryan Reith said.

“The overall smartphone market continues to be challenged in almost all areas, yet Huawei was able to grow shipments by 50 percent,” Reith said.

South Korean consumer electronics behemoth Samsung saw smartphone shipments fall 8.1 percent to 71.9 million in the first quarter.

Meanwhile, Huawei weighed in with 50.3 percent growth to ship 59.1 million smartphones and put it within “striking distance” of Samsung, IDC said.

Apple had a challenging first quarter, with iPhone shipments dropping by a “staggering” 30.2 percent from a year earlier to 36.4 million units, IDC said.

Price cuts in China, along with favorable trade-in deals, were not enough to coax people into upgrading to new iPhones, the market tracker said.

Apple delivered stronger-than-expected financial results for the past quarter as gains in services helped offset slumping iPhone sales, sparking a rally in shares of the technology giant.

An overall slowdown in the high-end smartphone market has been seen as a symptom of people waiting longer to upgrade to new models and a lack of the kind of captivating innovation that inspires them to do just that.

“Consumers continue to hold on to their phones longer than before, as newer higher priced models offer little incentive to shell out top dollar to upgrade,” IDC research manager Anthony Scarsella said.

“Moreover, the pending arrival of 5G handsets could have consumers waiting until both the networks and devices are ready for prime time in 2020,” he added.

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