canalys

Huawei overtook Samsung in global smartphone shipments for Q2

Posted by | canalys, hardware, huawei, Mobile, Samsung | No Comments

Things haven’t exactly been smooth sailing for Huawei in recent years. The company’s rapid trajectory has been disrupted by on-going battles with the U.S. government that have, among other things, blocked its access to Google apps and services. But a new report from Canalys paints a reasonably rosy picture as the hardware giant overtook Samsung to snag the top spot in global smartphone shipments for the second quarter of 2020.

The news is a milestone for a number of reasons, not the least of which is the fact that this is first time in nine years that neither Apple nor Samsung has been at the top of Canalys’ charts. Huawei’s figures were almost exclusively boosted by sales in its native China, which currently comprises more than 70% of its total figure.

Image Credits: Canalys

It’s important to note here, however, the fact that the company took the top spot by essentially shrinking at a less rapid rate than Samsung. Huawei’s overall figures are down 5% year-over-year. But that figure pales in comparison to Samsung’s 30% drop. The two Goliaths are currently at 55.8 million and 53.7 million, respectively.

Things were bad for the smartphone industry prior to COVID-19, but the pandemic certainly hasn’t helped overall, as people are less inclined toward shelling out hundreds to north of $1,000 for inessential upgrades. And, indeed, Huawei’s numbers dropped by 27% outside of China, but the overall slide was dampened by an 8% growth in China. Samsung, meanwhile, currently controls less than 1% of the Chinese market.

As for what this all means for the future, it seems that it may be difficult for Huawei to maintain its top spot. “Its major channel partners in key regions, such as Europe, are increasingly wary of ranging Huawei devices, taking on fewer models, and bringing in new brands to reduce risk” Canalys’ Mo Jia said of the report. “Strength in China alone will not be enough to sustain Huawei at the top once the global economy starts to recover.”

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Smartphone shipments dropped 13% globally, and COVID-19 is to blame

Posted by | Apple, canalys, coronavirus, COVID-19, hardware, huawei, Mobile, Samsung, smartphones | No Comments

We knew it was going to be bad — but not necessarily “lowest level since 2013” bad. As Apple was busy reporting its earnings, Canalys just dropped some of its own figures — and they’re not pretty. After two quarters of much-needed growing, the global smartphone market just took a big hit. And you no doubt already know who the culprit is.

The mobile industry joins countless others that have taken a massive hit due to the COVID-19 pandemic, with shipments dropping 13% from this time last year. Here’s a graph for those of you who are visual learners:

Analyst Ben Stanton used the word “crushed” to describe the novel coronavirus’s impact on the mobile market. “In February, when the coronavirus was centered on China, vendors were mainly concerned about how to build enough smartphones to meet global demand,” he writes. “But in March, the situation flipped on its head. Smartphone manufacturing has now recovered, but as half the world entered lockdown, sales plummeted.”

First it was impact on the global supply chain, which is centered in Asia, along with a drop in demand among consumers in China. As Europe, the U.S. and other locations continue to live under shelter in place orders, demand in those markets has taken a significant hit. People are stuck inside and many have lost jobs — it’s not really the ideal time to consider shelling out $1,000+ for what still seems a luxury for many.

Samsung regained the top spot, while still losing significant numbers. Both it and the number two company, Huawei, were down 17% for the quarter. Apple, at number three, dropped 8%. Chinese manufacturers Xiaomi and Vivo saw some gains, at 9% and 3%, respectively.

There are bound to be rough times ahead as well. Per Stanton, “Most smartphone companies expect Q2 to represent the peak of the coronavirus’ impact.” Apple noted the uncertainty of its own earnings by opting not to issue guidance for next quarter.

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New smartphone figures highlight continued struggles to grow market

Posted by | Apple, canalys, gartner, hardware, Mobile, Samsung, smartphones, TC | No Comments

In some corners, the smartphone market is showing its first signs of life in some time.

Recent figures from Canalys indicate a small but notable uptick in the European market as shipments grew 3%, year-over-year in Q3.

The analyst firm put global growth at 1% globally in another recent report. Generally, such numbers wouldn’t warrant much celebration, but the way the market has been going, most manufacturers will take what they can get.

New numbers out this morning from Gartner paint a less rosy picture, with sales numbers declining 0.4%. It’s not a huge discrepancy between shipping and sales figures, but it’s the difference between being in the red and being in the black for the quarter.

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European smartphone shipments grew in Q3, driven by Samsung

Posted by | Apple, canalys, hardware, huawei, iPhone, Mobile, Samsung, Xiaomi | No Comments

Europe bucked global smartphone stagnation in the third quarter, marking an 8% year over year growth in device shipments. That number, provided by Canalys, puts the region at the top of smartphone growth figures, beating out Asia/Pacific’s six percent.

Once again, Samsung was the biggest winner here. The Korean manufacturer saw a healthy 26%, year over year growth. As noted back in Q2, Samsung’s growth comes as the company floods the market with a variety of different devices. Its mid-tier A Series accounted for all four of its top spots during that time period.

Huawei held steady in second place, as the company refocuses on Europe amid US/China trade tensions. Huawei accounted for 22.2 % of units shipped, versus Samsung’s 35.7%. Fellow Chinese manufacturer Xiaomi saw an extremely healthy boost for the quarter, jumping 73 percent for the year, to nab fourth place behind Apple.

While the numbers are positive in the face of larger negative trends, politics are still having a marked impact on figures.

“On the negative side, Brexit has already had an impact,” analyst Ben Stanton said in a release. “In the UK, shipments of premium devices from Samsung and Apple accelerated before each Brexit deadline this year, in March and recently October, followed by a large dip, as distributors were forced to stockpile product and hedge against impending tariff risk. This shot-term artificial boost distorts the market and the accompanying risk, costs and uncertainty, is a drain on the industry.”

Like much of the rest of the world, the European market is looking forward to a 5G rollout to help further juice shipments moving forward.

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For the first time in two years, the smartphone market shows signs of life

Posted by | Apple, canalys, hardware, huawei, Mobile, Samsung, smartphone, smartphones, TC | No Comments

All is not lost for smartphone manufacturers. On the heels of two years’ of global stagnation, the category is finally showing some signs of life. Much of the bounce back comes as manufacturers are working to correct for dulled consumer interest.

I wouldn’t put too much weight in the numbers right now, as they’re little more than an uptick. Numbers from Canalys put shipment growth at 1% from Q3 2018 to Q3 2019. In most cases, that would be a modest gain, at best, but this is notably the first time in two years that the numbers have been heading in the right direction.

Samsung saw the biggest gains — a phenomenon the analyst firm chalks up to a shift in strategy to eat some of its profits. The move has paid off for the quarter, with an 11% growth in device shipments, to 78.9 million devices shipped. That gives the company the largest global market share, at 22.4%.

Huawei, too, saw impressive growth, year-over-year, commanding second place with 66.8 million units shipped. Much of its growth came from China, which has ramped up spending on the company’s products as it has run into regulatory scrutiny overseas. Resumption of sales in some international markets helped juice growth as well. Of the top three, Apple continued to struggle the most, with a 7% loss from 2018.

For now, at least, none of the these numbers qualify as full turnaround for a stagnant category, though the upcoming roll out of 5G coverage could help move numbers in the right direction in the coming year.

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What Huawei didn’t say in its ‘robust’ half-year results

Posted by | 5g, Android, Asia, canalys, China, Earnings, huawei, Mobile, mobile phones, operating system, Ren Zhengfei, shenzhen, smartphone, smartphones, Trump administration | No Comments

The media has largely bought into Huawei’s “strong” half-year results today, but there’s a major catch in the report: the company’s quarter-by-quarter smartphone growth was zero.

The telecom equipment and smartphone giant announced on Tuesday that its revenue grew 23.2% to reach 401.3 billion yuan ($58.31 million) in the first half of 2019 despite all the trade restrictions the U.S. slapped on it. Huawei’s smartphone shipments recorded 118 million units in H1, up 24% year-over-year.

What about quarterly growth? Huawei didn’t say, but some quick math can uncover what it’s hiding. The company clocked a strong 39% in revenue growth in the first quarter, implying that its overall H1 momentum was dragged down by Q2 performance.

Huawei said its H1 revenue is up 23.2% year-on-year — but when you consider that Q1 revenue rose by 39%, Q2 must have been a real struggle…https://t.co/dFQo4gxEVbhttps://t.co/HABAQ6fmfK

— Jon Russell (@jonrussell) July 30, 2019

The firm shipped 59 million smartphones in the first quarter, which means the figure was also 59 million units in the second quarter. As tech journalist Alex Barredo pointed out in a tweet, Huawei’s Q2 smartphone shipments were historically stronger than Q1.

Huawei smartphones Q2 sales were traditionally much more stronger than on Q1 (32.5% more on average).

This year after Trump’s veto it is 0%. That’s quite the effect pic.twitter.com/x3dQlOePDA

— Alex B 📉 (@somospostpc) July 30, 2019

And although Huawei sold more handset units in China during Q2 (37.3 million) than Q1 (29.9 million) according to data from market research firm Canalys, the domestic increase was apparently not large enough to offset the decline in international markets. Indeed, Huawei’s founder and chief executive Ren Zhengfei himself predicted in June that the company’s overseas smartphone shipments would drop as much as 40%.

The causes are multi-layered, as the Chinese tech firm has been forced to extract a raft of core technologies developed by its American partners. Google stopped providing to Huawei certain portions of Android services, such as software updates, in compliance with U.S. trade rules. Chip designer ARM also severed business ties with Huawei. To mitigate the effect of trade bans, Huawei said it’s developing its own operating system (although it later claimed the OS is primarily for industrial use) and core chips, but these backup promises may take some time to materialize.

Consumer products are just one slice of the behemoth’s business. Huawei’s enterprise segment is under attack, too, as small-town U.S. carriers look to cut ties with Huawei. The Trump administration has also been lobbying its western allies to stop purchasing Huawei’s 5G networking equipment.

In other words, being on the U.S.’s entity list — a ban that prevents American companies from doing business with Huawei — is putting a real squeeze on the Chinese firm. Washington has given Huawei a reprieve that allows American entities to resume buying from and selling to Huawei, but the damage has been done. Ren said last month that all told, the U.S. ban would cost his company a staggering $30 billion loss in revenue.

Huawei chairman Liang Hua (pictured above) acknowledged the firm faces “difficulties ahead” but said the company is “fully confident in what the future holds,” he said today in a statement. “We will continue investing as planned – including a total of CNY120 billion in R&D this year. We’ll get through these challenges, and we’re confident that Huawei will enter a new stage of growth after the worst of this is behind us.”

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US/China trade uncertainty adds to global smartphone growth woes

Posted by | 5g, Android, Asia, canalys, China, donald trump, huawei, Mobile, Samsung, smartphone, Trade war | No Comments

Analyst Canalys has updated its forecast of global smartphone shipments — saying it expects just 1.35 billion units to ship in 2019, a year-on-year decline of 3.1%.

This follows ongoing uncertainty around US-China trade talks and the presidential order signed by Trump last month barring US companies from using kit by Chinese device makers, including Huawei, on national security grounds — which led to reports that Google would withdraw supply of key Android services to Huawei.

“Due to the many uncertainties surrounding the US/China trade talks, the US Executive Order signed on 15 May and subsequent developments, Canalys has lowered its forecasts to reflect an uncertain future,” the analyst writes.

It says its forecast is based on the assumption that restrictions will be stringently applied to Huawei once a 90-day reprieve which was subsequently granted expires — the temporary licence run from May 20, 2019, through August 19, 2019 — making it difficult for the world’s second largest smartphone maker by sales to roll out new devices in the short term, especially outside China, even as it takes steps to mitigate the effect of component and service supply issues.

“Its overseas potential will be hampered for some time,” the analyst suggests. “The US and China may eventually reach a trade deal to alleviate the pressure on Huawei, but if and when this will happen is far from clear.”

“It is important to note that market uncertainty is clearly prompting vendors to accelerate certain strategies to minimize the short- and long-term impact in a challenging business environment, for example, shifting manufacturing to different countries to hedge against the risk of tariffs. But with recent US announcements on tariffs on goods from more countries, the industry will be dealing with turmoil for some time,” added Nicole Peng, Canalys VP, mobility, in a statement.

It expects other smartphone makers to seek to capitalize on short term opportunities created by the uncertainty hitting the Chinese tech giant, and predicts that South Korea’s Samsung will benefit the most — “thanks to its aggressive device strategy and its ability to quickly ramp up production”.

By 2020, it expects the market to have settled a little — with active contingency plans to be in place in major mobile supply chains and channels to “mitigate Huawei’s decline”, as well as gear up for 5G device rollouts.

Canalys takes the view that 5G and other hardware innovations will be positive drivers for consumer demand — expecting smartphone shipments to return to soft growth globally in 2020, rising 3.4% to 1.39BN, albeit with some subtle regional variations that it says will allow some to recover faster than others.

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Smartphone shipments hit a five-year low in North America

Posted by | Apple, canalys, hardware, Mobile, Samsung, smartphones | No Comments

More dismal news from the smartphone number crunchers. New figures out of Canalys put the North American smartphone market at five-year low for the first quarter of 2019. That’s…bad. But also, pretty inline with what we’ve been seeing globally. The market has stagnated, and while manufacturers aren’t in full-on panic mode, there’s certainly cause for concern.

Shipments dropped from 44.4 million down to 36.4 million, marking an 18% drop year over year for the first quarter. Canalys says it’s the steepest drop it’s recorded for the category, chalking up some of the issues to “a lackluster performance by Apple and the absence of ZTE.”

Apple is still the top of the heap, commanding 40% of the North American market with help from the sale of older discounted units. But Samsung managed to tighten the gap on the back of a successful Galaxy S10 launch. The company grew by 3% for the year, up to 29.3% of the market.

LG, Lenovo and TCL rounded out the top five, with the latter two making pretty solid market-share strides. The remainder of the market took a massive hit, however, with a 65% drop in shipments. Analysts seem confident that 5G’s imminent arrival will help give the market a boost in coming quarters, but it’s going to be hard for manufacturers to maintain that momentum.

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Huawei overtakes Apple in smartphone shipments

Posted by | Apple, canalys, Gadgets, huawei, idc, Samsung | No Comments

Chinese smartphone manufacturer Huawei is now the second biggest smartphone manufacturer in the world according to new reports from IDC and Canalys, as The Verge initially spotted.

In IDC’s latest report, the firm says that the overall market has shrunk by 1.8 percent in Q2 2018. But the biggest surprise is that Huawei now has a 15.8 percent market share with 54.2 million smartphones shipped in Q2.

It doesn’t mean that Apple is performing poorly. The company is shipping slightly more smartphones this year compared to last year. Apple also has a slightly bigger market share with 12.1 percent of the market.

Samsung is shipping 10.4 percent less smartphones but still remains the leader with 20.9 percent market share, or 71.5 million smartphones. In other words, many Samsung buyers are now buying Huawei devices, or other Android devices.

Canalys confirms this trend with the same order — Samsung, Huawei and then Apple. But the firm also highlights that Apple suffers from seasonability compared to its competitors.

Samsung and Huawei sell many different devices and release new phones all year long. Apple usually releases new devices in September, which creates a huge spike during the last quarter of the year. Apple will likely overtake Huawei and maybe even Samsung in a couple of quarters.

It’s interesting to see that Huawei is performing so well while the company has had issues with the U.S. government. If you browse the smartphone category on Amazon, Honor devices usually appear near the top of the list — Honor is Huawei’s brand for cheaper devices. The Huawei P20 Pro is also a solid device for those looking for a premium device.

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Apple and Android are destroying the Swiss Watch industry

Posted by | Apple, apple inc, apple store, Apple Watch, business, canalys, computing, Gadgets, smartwatches, Steve Jobs, TC, technology, watches, wearable devices | No Comments

 In Q4 2017 – essentially during the last holiday season – market research firm Canalys found that more people bought Apple watches than Swiss watches. Two million more, to be exact. Brian Heater has more data but this news is quite problematic for the folks eating Coquilles St-Jacques on the slopes of the Jura mountains. The numbers are estimates based on market data but they… Read More

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