Global sales of smartphones to end users continued to decline in the third quarter of 2019, contracting by 0.4% compared with the third quarter of 2018, according to Gartner, Inc.
Huawei was the only one of the top-five global smartphone vendors to achieve double-digit growth in smartphone sales in the third quarter of 2019. The company sold 65.8 million smartphones, an increase of 26%, year over year. Huawei’s performance in China was the key driver of its global smartphone sales growth. It sold 40.5 million smartphones in China and increased its share of the country’s market by almost 15 percentage points.
While the ban on Huawei to access key U.S. technologies is yet to be fully implemented as a three-month extension was just announced, the proposed ban brought negativity around Huawei’ brand in the international market. Nevertheless, Huawei’s strong ecosystem in China continued to show growth. The current situation with the U.S. has also fostered patriotism among Huawei’s partners, which are now keener to promote its smartphones in China — a development that makes it difficult for local competitors to compete aggressively against Huawei. Huawei’s long investment in subbrands (Honor and Nova), in multichannel operations (online and retail), and in 5G and other technological innovation forms the basis of its success in China.
Samsung maintained the No. 1 position globally in the third quarter of 2019, by increasing its smartphone sales by 7.8%, year over year. “Samsung’s aggressive revamp of its portfolio, with a focus on midtier and entry-tier segments, strengthened its competitive position,” said Mr. Gupta.
Apple’s iPhone sales continued to decline in the third quarter of 2019. Apple sold 40.8 million iPhones, a year-over-year decline of 10.7%.
MacDailyNews Take: Obviously, Apple does not make low-end crap in order to boost shipment totals. Apple doesn’t play in the unit share game. Apple makes only high-end smartphones. Of course, Apple’s absence from the race doesn’t preclude some from criticizing Apple’s performance in said race.
Of course, third quarter is also the quarter before new iPhones are launched as everyone in the world knows and Apple still sold over 40 million high-end units in a 90-day period with margins that would make Samsung, Huawei, et al. faint from shock.
25MM of those phones are pure profit for Apple. Less than 5MM for samscum and huawei
Gartner etc are just guessing as most of the vendors including Apple don’t release unit numbers.
IDC also by guesswork has way higher numbers for Apple BTW. 46m vs 40m
Gartner regularly get it wrong. And “market share” is actually wrong… they mean “sales share” for a defined period. Because iPhones have a much longer life than these cheap throwaway Androids, Apple’s market share is much higher than these fluffy figures pretend.
We haven’t seen any profitshare comparisons recently. Last one I remember showed Apple not only far and away the leader, but somehow at over 100% in one metric.
Apple’s last year’s releases were relatively “meh” for Apple. The 11 models are much more attractive (even as Samsung’s really broke little new ground, the Pixel 4 is getting dinged every which way, etc. although the Huawei situation’s out of my area of knowing how to analyze.) But since the third Q barely reflects the 11s I would expect big changes to these results in Q4.
Apple appears to be ramping up its game in lower price segments as well, using quality tech that even with a little mileage can run circles around other company’s mid-range offerings in performance, useful life, resale, etc, I think this works because they’ve accepted they won’t be driving high end customers to such models, and still have a chance to build base and marketshare without selling junk.
Those numbers don’t tell the context of anything. I’m not even sure who needs to know these things. Are those numbers actually for investors? Or bragging rights for manufacturers? I’m sure consumers don’t give a damn about those numbers. The only thing that should matter is the financial books of those companies. Are they making a profit from those increased sales? If a company is going to take less profit or even losses to increase sales, that’s not good business. Outright sales will never tell how well a company is doing. However, I’m not particularly happy Apple is continuing to lose market share or selling fewer iPhones YoY. That’s almost never a good thing for a company unless sales the year before were unusually high.
Anyway, for one year it was Xiaomi that was making Apple look bad and another year it was OPPO. It’s just that those companies can’t increase sales in double digits forever. No company can. Better to just be in the fight every year and not take any significant losses. It’s still kind of weird how Apple is worth more than all those companies combined yet people keep saying Apple is losing its edge. How much would Apple be worth if it did everything right as expected? Scary.
Interesting, but the article fails to realize the effect of discontinuing the iPhone SE on unit shipments. And Huawei, a China gov’t backed and mandated phone.
See here :
https://www.scmp.com/business/companies/article/2177290/chinese-huawei-supplier-will-punish-staff-buying-apple-iphone
Huawei’s sales in China were up 40%. That’s at least partly due to China stigmatizing Apple iPhones and even punishing their owners, while pushing the official phone of the communist state (Huawei).
I think it is useful tech news website. I am not surprised to know a decline in sales of smartphones as old models are fully equipped with modern technology also you can check edubirdie review so that the reason consumers are not bothering to ingest their money by purchasing new ones.
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