Huawei’s Profits Rise Inspite Of China’s Declining Economy

Huawei is now outselling the iPhone four times over in China inspite of intense backlash from first world countries who have resulted in banning their equipment following accusations that are using their equipment to spy on thei intelligence.

According to a new report from market research firm Canalys,Huawei has dominated the Chinese smartphone market in the first three months of 2019 taking a record 34% share as rivals Oppo, Vivo, Xiaomi and Apple (AAPL) all struggle.
It was the only major smartphone maker that managed to grow in China’s declining market, and it did so by a huge amount.
The Shenzhen-based company shipped nearly 30 million phones in the three months ended in March, up 41% compared to the same period a year earlier. Apple sales in the first quarter plunged by 30% to 6.5 million phones — its worst decline in two years, according to Canalys.
Apple’s iPhone business is struggling worldwide. The California company reported Tuesday that global sales for the first quarter fell 17% from the previous year.
In China, Huawei “is the strongest it’s ever been,” Canalys analyst Mo Jia said in the report. The company has opened more brick-and-mortar locations, pushed into rural areas and filled its stores with more smartdevices and accessories to attract shoppers.
The investments have helped Huawei “gain customers from other vendors, such as Oppo and Vivo, which used to enjoy absolute dominance in offline channels,” said Jia.
Unlike Apple, Huawei and other Chinese smartphone makers also have a wide range of low to high-end models, so they can appeal to more cost-conscious buyers.
Huawei’s stellar first quarter growth came despite China’s smartphone market suffering its worst contraction in six years, with overall shipments declining 3% to 88 million phones.
Globally, Huawei is in pole position to overtake Samsung as the world’s largest smartphone maker.

Leave a Reply

Your email address will not be published. Required fields are marked *