This Chinese giant just surpassed Microsoft

31 Jul 2015 | Author: | No comments yet »

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

Huawei is now the third-largest mobile phone maker in the world, beating out Microsoft MSFT -0.47% for the number of items shipped in the second quarter of 2015, according to 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. Engadget reported Friday that Huawei shipped over 30 million phones during the year’s second quarter, which is roughly a 50% increase from the same period in 2014. 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. Microsoft, meanwhile, sold 27.8 million phones worldwide in the quarter. “Huawei is rising fast in all regions of the world, particularly China where its 4G models, such as the Mate7, are proving wildly popular,” Ken Hyers, director at Strategy Analytics, told Engadget.

It essentially boils down to a somewhat lopsided battle between Samsung and Apple for the top spot, with every other vendor jockeying for third place. 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. Apple, said Mawston, outperformed because “consumers in China and elsewhere upgraded to bigger-screen iPhone 6 and 6 Plus models.” Huawei toppled Microsoft for the first time, which saw its sales decline to 27.8 million units from 50.3 million, and saw its share fall to 6.4% from 11.8%. 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.

But with Samsung shipping less phones this quarter and Apple enjoying a surge in sales, Samsung’s share has fallen to 20.5 percent while Apple has climbed to 10.9 percent. While slow growth or a slight fall in sales, would be directly related to the industry’s performance, a 22.5-million unit fall in sales is quite astounding. With total shipments of 340 million units, and growth of 15%, the authors write that “It was the smartphone industry’s slowest growth rate for six years.” 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. FY14 sales were probably high, as the company acquired Nokia’s mobile phones; therefore, it inherited Nokia’s customers, and garnered the industry’s attention.

While Windows 10 is a highly-anticipated offering, and may bring back some users that it lost in the recent OS versions, it is unlikely that it will attract smartphone users.

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