Huawei passes Microsoft as third-largest mobile phone maker

31 Jul 2015 | Author: | No comments yet »

Apple Rises, Samsung Falls, Huawei Topples Microsoft in Q2 Mobile Share, Says Strategy Analytics.

Research firm Strategy Analytics late Wednesday reported Apple (AAPL) and China’s privately held Huawei gained share of the global mobile phone market in Q2, while both Samsung Electronics (005930KS) and Microsoft (MSFT) saw their respective share decline.

Although Windows 10, which launched as a free upgrade for nearly all Windows users on 29 July, has attracted much praise from critics and customers alike, its mobile relative does not yet have a firm release date – and when it does finally arrive, it will have a battle on its hands to make Microsoft a relevant player again in the smartphone market.Smartphones accounted for 78% of mobile phone shipments worldwide in Q2, according to Strategy Analytics. “Apple outperformed as consumers in China and elsewhere upgraded to bigger-screen iPhone 6 and 6 Plus models”. Samsung was once again the world’s biggest supplier, shipping 89 million mobile phones, including both smartphones and simpler “feature phones,” according to an estimate compiled by Strategy Analytics. Huawei was the star performer, taking a record 7 percent market share and overtaking Microsoft to become the world’s third largest mobile phone vendor for the first time ever. Thus, Huawei becomes the world’s largest and one of the most influential smartphone vendors, even though Samsung and Apple still have the supremacy over the premium market.

And the 30.6 million handsets that Huawei shipped during the quarter puts it well on track to top its internal goal of moving 100 million phones this year. Analyst Neil Mawston with Strategy Analytics remarked that Samsung “stabilized” its shipments of more expensive phones, but was losing ground in less-expensive models because of fierce competition from Huawei and others. Now languishing in fourth place in the table, Microsoft’s figures made for grim reading; the firm shipped 27.8 million handsets, down from 50.3 million in Q2 a year ago. Mawston remarked that Microsoft’s share is “near an all-time low”, with the company continuing to “lose ground” in feature phones and that its “Lumia” smartphone line is in a “holding pattern”.

As analyst Linda Sui with the firm puts it, “Smartphone growth is slowing due to increasing penetration maturity in major markets of the US, Europe and China”. “Huawei is rising fast in all regions of the world, particularly China where its 4G models, such as the Mate7, are proving wildly popular”, said Strategy Analytics director Ken Hyers. Huawei, on the other hand, has had a lot to profit from Microsoft’s fall, but from Samsung’s failure to produce enough smartphones until the release of its new Galaxy S6 as well.

Microsoft this month said it would take a $7.6 billion non-cash charge to write off unrecoverable goodwill of the 2013 purchase of the former Nokia unit, and said it would scale back its efforts in mobile devices. Samsung has stabilized volumes in the high-end, but its lower-tier mobile phones continue to face intense competition from rivals such as Huawei in Asia.

So, Microsoft, which incorporates the Nokia Lumia design, was outrun by Huawei, even though Lumia, previously, really did perform well in European countries like Italy and Spain, but, at the present time, Microsoft is roughly oriented towards targeting the Apple and Samsung-dominated market. It is worth mentioning that Huawei disclosed two brand new smartphone models in the shape of P8 and Honor 7, and it is a fair possibility that it will reveal yet another model at IFA 2015, Europe’s largest electronic trade show. The general public is in for another interesting surprise, as Huawei teamed up with Google for a next generation Nexus device, whereas this would certainly boost its popularity even further.

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