Global smartphone market returns to growth, driven entirely by Samsung and Huawei

Canalys Huawei dominates the domestic smartphone market in Q3 2019

Market share leader Samsung shipped 11% more smartphones than it did in the same quarter from previous year, and finished Q3 2019 with a volume of 78.9 million devices shipped, increasing its global market share from 20.4% in Q3 2018 to 22.4% in Q3 2019. However, promotions and patriotic purchases have driven its smartphone sales in China, helping it more than offset a shipments slump in the global market.

Apple maintained its position as the fifth-biggest seller of smartphones in China, according to Canalys, with its latest iPhone 11 accounting for almost 40% of Apple's third-quarter shipments in the region.

The resurgence was led by market share leaders Samsung and Huawei, who experienced double-digit annual growth rates from Q3 2018. Strategy Analytics said Apple appears to be stabilizing, due to cheaper iPhone 11 pricing and healthier demand across Asia and the US. Samsung's strategies have seemingly paid off, boosting the profitability of its mobile division when compared to the same period from a year ago.

A Huawei offline shop on Sept 28, 2019 in Beijing.

As Huawei consolidated its position in the market, all other vendors lost ground.

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According to the research, Chinese consumers started switching to Huawei devices due to ongoing criticism of its trade practices by the USA and other regions.

"Huawei is in a powerful place to consolidate its dominance additional amid 5G community rollout", Canalys commented. In Q3 2019, the firm shipped a total of 9 million for a total of 42% market share. Growth was seen not only in China, but also in overseas markets where volume increased sequentially from 21.5 million in Q2 to 25.3 million in Q3, as procurement, which had been paused in Q2, resumed.

As for Apple, its market share fell to 12.3% in Q3 2019 from 13.4% in Q3 2018.

Apple's two largest competitors enjoyed growth in smartphone sales last quarter, with both Samsung and Huawei up. iPhone sales dropped, however. "It has tangible improvements in camera and battery life, and its discount versus the iPhone XR was a welcome surprise to consumers".

The company's quarterly results likely received a boost from the launch and accounted for 40% of its shipments, with customers willing to wait two to three weeks to receive shipments of the newer models, Peng said.

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