Huawei Brandishing it's Might! Posted Sep 7, 2017 by Ruchika S

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5 Huawei

Chinese smartphone manufacturer Huawei has ascended to the number 2 spot on the list of the largest smartphone brand in the world. As per a report by market research firm Counterpoint’s Market Pulse, Huawei has overtaken Apple Inc in global smartphone sales for the first time ever. Samsung being the chart leader puts it as the world number one smartphone manufacturer.

Peter Richardson, Research Director Counterpoint; attributes this success of Huawei to Huawei's strong foothold in its home market China, it's constant R&D investment, constant manufacturing investment and also a strong emphasis on its marketing and sales channels.

This feather on Huawei's cap might be a temporary situation with Apple’s annual iPhone update being just around the corner. The iPhone launch just being around the corner does however underscore Huawei's night in the market and the rate it's been growing at.

Chinks in Huawei's Armour

A weak market presence in India, South Asia as well as North America limit Huawei to be able to hold onto the coveted number 2 position in the short to medium term after Samsung.

Huawei draws maximum revenue from its home market China, as it holds a commanding lead over its peers. Huawei also holds top positions in the european market due to its operator centric markets. Beyond Europe and China, Huawei holds a good share of the market in Latin America as well as the Middle East region.

Success Mantra

Peter Richardson attributes Huawei's mantra of gaining such widespread success majorly on their vendor infrastructure network and the extent to which they been able to grow it in the past three to four years. This scale that Huawei has been able to garner is primarily due to its consistent investments in R&D as well as manufacturing facilities and extremely aggressive expansion of its marketing and sales channels.

The chinese brands have been growing extremely swiftly due to their designs, manufacturing capacity, outsmarting and out spending rivals in their sales channels, extremely feature rich devices, go to market as well as promotional strategies.

Even though Huawei has been able to grab this new number two position, it's smartphone models haven't yet broken into the top 10 best selling models. The range is still topped by the Apple iPhone 7 followed by sets of Oppo, Xiaomi and Samsung to round up the top 10 pecking order.

Chinese manufacturers having gained key access to major global supply chain partners has allowed them to launch a multitude of devices sporting tech such as augmented reality (AR), bezel less displays, in house chipset as well as advanced camera features. These have given them the extra firepower required to take on the might of Samsung, Apple and other Japanese manufacturers.

Future Outlook

Chinese manufacturers cannot be ignored any more in the market as per Counterpoint's Assistant Director Tarun Pathak. Chinese smartphone brands have taken up leader positions in the market in most of the key markets such as China, Europe, Asia and Latin America. This has led to the growth prospects of the market bigwigs such as Samsung and Apple being restricted.

With the way Huawei is going about in the market, researchers predict strong sales in August for the Chinese vendor, and a hat-trick for Huawei could be on the cards as well.

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