Huawei closes in on Apple in China

by: John DyeMarch 11, 2016
2.4K

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Right now, the Android operating system is absolutely dominating the Chinese market. To get a snapshot of this, we can look at how iOS smartphones accounted for about 25% of urban sales in 2014, with the Android operating system constituting an overwhelming majority of the remaining 75%. However, Apple is responsible for that entire 25%, whereas Android sales are scattered across a slew of competing companies like Huawei, Xiaomi, Meizu, and Oppo. However, the growth of iPhone sales has been in decline since 2014, and now one of the Android companies is closing the gap.

huawei-logo-mwc-2015-1See also: Flashback and Forecasts: Huawei in 201610

Huawei is the dark horse that everybody is starting to notice. Back in 2014, the scrappy company only sold 5% of Android smartphones worldwide. By the beginning of this year, Huawei had nearly tripled this figure, snagging 14% of the global smartphone market. That’s a pretty massive figure for a company that hardly has any presence at all in the US, and has only recently broken into European markets. Huawei’s invasion of Europe has been pretty damn successful, with their numbers doubling in both France and Great Britain over the course of 2015 to secure a number-four position in brand ranking, while achieving second place in Italy, Spain, and Germany.

Huawei-P8-vs-Apple-iPhone-6-10

But that doesn’t even touch on where Huawei is really killing it, because these guys have quickly become a force to be reckoned with on their home turf of China. While Apple’s growth has slowed substantially since 2014, Huawei has been briskly closing the gap, capturing fully 24.3% of the market. Love ‘em or hate ‘em, this Chinese company is establishing itself as a major global player in the smartphone industry, and they’ve got some crazy momentum on their side.

What are your thoughts regarding the ongoing rise of Huawei? Have you had experience with their products before? Let us know your opinions in the comments below!

Huawei-P8-vs-Apple-iPhone-6-1Next: Apple iPhone 6 vs Huawei P8 – hands on67
  • Dizzle

    I only have the Huawei smart watch, and so far I like it.

  • RiTCHiE

    Think my next phone might be a Huawei if they hammer the camera with RAW support :)

    • Andre Senge

      You should jump to Huawei , they are a great company with great products.

      • RiTCHiE

        yea the hardware always looks nice and think they push tech way more then brands like samsung. But how is huawei on the software side?

        • Andre Senge

          Well my opinion the software is a whole lot better looking then Samsung Touchwiz and LG’s. They say some features don’t work right with Huawei’s EMUI but haven’t noticed anything wrong with it and that it looks like IOS? Not really and if so well so what, its still an Android phone and for there to be a hint of IOS is kinda cool.

        • iDroid0

          The software’s a bit of an iClone if you’re OK with that, but all the system animations run at a super smooth 60FPS and there’s less lag than stock, so it’s pretty cool. Just make sure to go to the “Security Center” and turn off “auto-close” for all of your apps that send notifications, otherwise you might not get notifications.

    • Filly Jnr

      Only problem is software… Its shiet

      • Andre Senge

        Its not perfect nor is it bad either.

        • itfa

          The 5x is very bad.

  • Milomar

    I have the Huawei mate 7, best phone I ever had.

    • colin haller

      I bought one for my daughter — the value proposition is unbeatable

  • Link_Alcera

    For me it’s like the story of Blackberry and Mac/Iphone all over again where as before Iphone took over and now its the other way around if Mac/Iphone don’t make something “innovative”. Just my two cent… ^_^’

    • Filly Jnr

      True

  • the Apple is NOT that big

    Apple 25% market share is for URBAN CHINA (city)
    for all china, apple is bellow 10%.

    • The-Sailor-Man

      WTF is this “urban china” BS? Who invented it and why? Oh wait….
      And why AA use it without to mention it?

      • Anon

        urban china’s population is already larger than double the entire american population so yea. it’s already a very serious market

      • balcobomber25

        Urban China is a term used by the World Bank. Roughly 56% of Chinese citizens live in Urban China. That is about 760 million people, only India would have more people if Urban China was it’s own country. You really need to do some research before posting about things you have no clue about.

    • coldspring22 .

      What’s pretty shocking is factory workers in China buying an iphone with several months of salary to make a fashion statement. Realistically, given a base iphone 6S is over $850 in China, much smaller fraction of population can really afford it – even in urban China. Longer term, 25% Apple market share of urban Chinese market is not sustainable, at $1000 per iphone pop

  • abazigal

    Haven’t we been through this already?

    1) Market share is the means, profit is the end. All the phones sold in the world doesn’t mean anything if they don’t allow you to make a meaningful profit (LG’s legendary 1.4 cents per handset sold last year comes to mind). What is Huawei’s profit looking like?

    2) I am of the opinion that the line between iPhones and Android phones is more deeply drawn than ever. I have every reason to believe that Huawei’s success will come more at the expense of its other Android competitors than to Apple’s detriment.

    First it was Samsung. Then Xiaomi. Now Huawei. How many companies have been touted as the next “iPhone killer” and failed miserably? I think the website would be better served worrying about the “race to the bottom” impact these entrants will have. Beneficial to consumers in the short run due to lower prices, not doubt, but I can’t see it boding well for the long-term viability of these companies.

    • The-Sailor-Man

      Samsung still is selling more than Apple in China.
      This article is misleading.

      • Diego

        They almost don’t make a profit tho.

        • The-Sailor-Man

          No . Huawei don’t make profit.
          Samsung make much profit but spend also a lot for R&D
          But this atricle is about market share. Right? And AA lie.

          • balcobomber25

            Get your facts straight instead of just making stuff up to look smart. According to multiple actual sources Huawei had a profit of 5.5 billion last year.

      • Diego

        Samsung sells more low end and mid range smartphones then flagships.

        • The-Sailor-Man

          That’s just your guess. Right?
          Apple also sell many old models that counts as low end.

          • Diego

            Old iPhones hold their value tho.

          • The-Sailor-Man

            Wow!
            Did you read what is the article about???
            Yes , 25% market is a lie. Period.

      • RiTCHiE

        isn’t it about how much money you make of the phones then about how many you sell? You can sell 5 million units with like 2 dollar profit or like 1 million with 100+ dollar profit.

        • The-Sailor-Man

          No! It isn’t.
          It’s about market share.
          Read the article.

    • mrochester

      This. The whole point of having a business is to produce products and to make money. This is the single biggest metric which we should use to determine how successful a company is. Marketshare does not pay wages.

    • HotelQuebec

      Only an idiot consumer worries about someone else profiting. Do you have the same idiot mentality when you go buy a car and gloat about profitable you made the car lot? Most smart consumers try to pay near or below invoice.

      • mrochester

        So what do you propose we should use as a metric to measure how successful these companies are?

      • abazigal

        Only a fool would dismiss the importance of profit margins when analysing how successful a company is either.

        Profits are what pay the bills and ensure that the company in question will continue to remain around in the long run to churn out the products that you love.

        How or why the company in question is profitable is irrelevant here.

        • coldspring22 .

          So that’s why Microsoft, the king of profit center in 90’s with billions sitting in the bank, totally crushed Google and Apple? Billions sitting in the bank is one thing, but that’s pretty much meaningless if a company has a clueless leadership. And don’t be shocked if Apple (already) has clueless leadership in place. Only Steve Jobs seem to have any clue about running Apple and he’s not coming back for third time!! Apple is the next Microsoft (if they are lucky)!

    • seattle tech

      There are reasons why some of these companies never disclose profit. It’s because they aren’t making any or it’s slim. It would show the true value of the companies like xiaomi. It’s ok though because they are getting billions injected by the state.

    • balcobomber25

      Huawei had a profit of 5.5 billion last year, I would say it is looking pretty good especially considering they weren’t in some of the largest markets in the world till this year like the US.

      • AbbyZFresh

        5.5 billion from its telecommunications division. their smartphone division is hardly making net income.

        • balcobomber25

          You must have access to their detailed financial report, so prove it.

        • Huawei P9 User

          Here you go again bashing Huawei like a jealous little girl. Smh

    • coldspring22 .

      That might be true for company run by bean counters (e.g. Apple), but not true in general. American companies usually put high profit as ultimate goal of business, and sell out when profit margin becomes low. That’s why Asian companies now dominate virtually all of consumer electronics business. Believe it or not, Apple has lost smart phone war and the future dominance in smart phone market because of Apple’s short sighted goal for maximization of near term profit. Total luxury smart phone market (phones sold over $600) may be 300 million units today, but it might become 200 million, then 100 million units total, as people find mid range and entry level phones becoming ever more compelling, and plenty capable for their use cases. Apple’s share in global smart phone market is destined for continual decline, eventually ending up in single digit range, just as their mac business, confined to the boutique niche.

      • abazigal

        You wouldn’t be the first person to claim that Apple is doomed, and you wouldn’t be the first person to be dead wrong either.

        Apple today is more successful than ever, and I believe this simply represents the start of its ascent all the way to the top. Admit it, Apple is going to keep doing what it is doing for a very long time, and there is nothing its competition can do to stop this. Today, Apple has grown so powerful that its notable struggles are with the govt and the FBI. Not Microsoft. Not Google. Not any Android OEM.

        Yes, smartphones may have reached “good enough” but guess what? These are Android phones, not iPhones. The people who want iPhones and the benefits of the Apple ecosystem are still going to get an iPhone in the near future. Apple’s market share may fall, but you are forgetting that even a small market share is still a very large number of phones sold in an absolute sense. Each piece of Apple hardware sold this way is extremely profitable in its own right.

        Apple has won.

        • coldspring22 .

          LOL, Apple has won? isheep chewing on weeds? Nope, Android has won!!. Only ifanboys and Apple brass doesn’t know it yet. In 2009, ifanboys said Android was DOA! How did that predictoin go? LOL!! Since then , Android went from less than 20% market share to 85% market share global!! And where did Iphone and IOS go from 2009 to 2016? Don’t look yet, but Apple had historic first down quarter for iphone sales already (74.5 million sold to consumers Q1 2015 —> 71.5 milllion sold to consumers in Q1 2016). Next quarter will also be another down quarter for iphone (per Tim Cook!!). And next one? Can iphone learn to do ipad dance and go for 8 straight quarters of YOY decline?? BTW, Who said anything about doomed? Ifanboys always bleet DOOM DOOM DOOM whenever anyone has even tiniest criticism for their cherished Apple corp. I just said Apple will shrink back to be one of the companies in the pack of many other OEMs out there (except they are always trying to compete alone against rest of the world), and the Android has totally crushed all competition and will increasingly dominate the future of smart phone market, regardless ifanboy fantasies.

  • The-Sailor-Man

    How did you invented this 25% for Apple in China, iboys????
    ROTFL.
    This is total lie!!!!
    Same trick , as you did long ago , to divide the Galaxy S4 on two – US and International , so iphone sale to be on first place , followed by S4 International and S4 US on second and third place.
    iParthetic.

    • Exare

      For why you type space in front comma?

      • The-Sailor-Man

        Good question .

      • Fifth313ment

        For why you don’t? LOL

    • balcobomber25

      How did you invented your own language??

      As for Apple they have had between a 15-20% share of the Chinese market the last year, 25% isn’t out of the question.

      • The-Sailor-Man

        25% is out of the question. Lie
        Apple is declining. Now is less than 10% in whole China.
        The trick AA made to promote their lovely Apple is to invent the term “Urban China” and ignore China. LOL

        • balcobomber25

          Urban China makes up more than 50% of the entire country, over 700 million people. According to the most recent research they around 13% in the whole of China. The difference between Urban China and the rest is Urban China is the only place Apple markets their products. The poor farmers and factory workers in rural China can’t afford iphones.

          • abazigal

            This. The people who look at raw market share in a vacuum fail to acknowledge that not all customers are created equal. That small percentage of people in China who do buy an iPhone also happen to represent a sizeable majority of people with enough disposable income to afford an expensive, high-end flagship phone in the first place.

          • balcobomber25

            On sites like this China scares a lot of people. And it is because of this fear that they often say things without thinking or without having any facts to back it up. They live in a glass bubble and ignore the problems of their own countries. They don’t realize that for the most part China is just like any other country.

    • coldspring22 .

      True, no way 25% of Chinese people can afford massively overpriced iphone (particularly in China, where base iphone 6S with measly 16G storage goes for over $850). Annual average family income in China is just $10K per year. If a family with two kids were to buy iphone for everyone every year, that would forking over $4000 out of $10K to Apple. Hope the iphone crazy Chinese family doesn’t needs to eat or have a roof over their head!!

  • Hector Diaz

    Huawei is not a bad product but it has a bad support. I can say because it because I owned Huawei G700, G735, P6 and P7. The last 2 their top smartphones but they don’t give any upgrade to international customers. The G700 came with Android 4.2.1 and still there the P6 with 4.2 and the P7 on KitKat and still there. That’s why I change to Nexus phone because you buy I phone brand new to get at list some update and still waiting. Companies that doesn’t give support shouldn’t be on the Market.

    They lose me and my family as customers because of that.

    • Chesz Heaven-

      They do upgrade OS’. I have a mate 7 kitkat and I upgraded to Lollipop to Marshmallow. Maybe you’re not checking the Updater..

  • Harry Garland

    I have the Nexus 6P which is manufactured by Huawei and is probably the best phone I have owned.

  • micah Owensby

    Same as Dizzle. I own a Huawei Watch, and by God it is a fine, fine device. if Huawei releases some of their high end devices through a carrier ID be more than happy to pick one up.

  • jay

    Apple will always have a hard time were the price is to high. Canada iPhone 6s plus is around 1300. Huawei is 279$. My wife has one and is really a good phone. Is around 1000$ cheaper and has all these bells and whistles

    • RiTCHiE

      Well people that buy apple, buy it for the brand and ecosystem because they think owning a iphone makes them a better human ;) But you have to see this 50/50…. 50% just follow the hype and buy whatever and 50% wants to have the best phone for their needs. I love android but know that old people and kids love iOS where teen and young adults love android due to its customizability.

      • jay

        Well don’t think teens buying android due to Imessage. I see it on my son he needed an iPhone because all his friends have one. So he preferred an iPhone 5s over the note 4.

    • balcobomber25

      Not all Huawei models are cheap. The P8 launched for $530 (16GB) and $630 (64GB), the P8 Max was $588 (16) and $688 (32). In many countries an iPhone isn’t that much more expensive. In China specifically the difference is about $200-300.

      • jay

        Prefer paying 600 than 1100

        • balcobomber25

          1100 depends where you live. In some countries the prices aren’t that different, for instance when I was living in Thailand, the newest Huawei flagship was selling for around $750, the iPhone 6 was selling for around $800.

  • spewak

    Nexus 6p. Solid look, feel and construction.

  • seattle tech

    How is Huawei a dark horse? It’s the 800 lb country owned gorilla

    • balcobomber25

      Huawei is an employee owned company, Financial Times did a complete investigation of them and found that the ownership shares are split between 80,000 employees. They could find no links to the Chinese government.

  • Andree Lopez

    The Nexus 6p and the Mate line are examples of what this company can bring to the Market

    • itfa

      They also produced the 5x, which shows exactly how bad their software engineering can be as well. They need to work on consistency.

      • shihantha

        The 5x is developed by LG. Not Huawei.

        • itfa

          Go ahead and look up the Huawei Honor 5X. It’s a $200 phone available in the US market. Good specs, good build quality, absolute garbage software.

          • Karly Johnston

            The 615 is a garbage processor so not so good specs.

  • Ali Algureishy

    Good job Huawei keep fucking apple

  • Hung Solo

    And what percentage of those android handsets are iPhone clones? Lol!

    • balcobomber25

      Not many. Clones are going away, some Chinese looks similar just like the iPhone 6 looks similar to the HTC One.

  • hiya

    i have honor 7 and its a fantastic phone, with astonishing price/quality ratio
    i dont really like huawei’s os but thats fixed with launchers like nova

  • Roger Allen

    Ive had four Huawei devices and they have all been amazing devices (Mate 7, P8 Max, Mediapad M1 & M2). I can see why they are quickly climbing up the rankings. Hope they continue to build impressive devices…..but change the software! :-)

  • s2weden2000

    that’s right ..honor X2 the only way to roll …