2017 Q2 Smartphone Marketshare - Huawei becomes #3

I'm a little late in commenting about the worldwide smartphone market share as IDC published their numbers about a month ago..

 The overall market in Q2 of 2017 took a slight hit @ 341.6M units sold vs 346.1M in 2016 - about a 1.5% drop.    Still consider however that this number is nearly 6 times larger than PC sales for the same period with came in around 60M units.

 Samsung and Apple are still #1 and #2 respectively.  Samsung still sells nearly double the volume that Apple does at 79.8M units (23.3%) vs 41M (12%)

 The big news is that Huawei is now the solid 3rd place OEM with 38.5M units sold and a 11.3% market share - which is a 19.6% growth over last year.

 The number 4 & 5 OEMs are also Chinese - in Oppo and Xaiomi respectively.   And as I had predicted over a year ago those three firms combined have now surpassed Samsung with 87.5M units sold or a 25.6% market share.   And the growth numbers these vendors are seeing is pretty remarkable.   Oppo saw a 22.4% year over year growth while Xaiomi saw 58.9%.   

 When you compare this to the 1.4% & 1.5% growth numbers from Samsung and Apple it shows that Huawei will most likely pass Apple for the #2 spot in Q3.  

 Apple may regain #2 again in Q4 since it always seems to have a monster quarter following it's annual product refresh.   With that said however - that may not be the case.   

 The market buzz out there is that the new iPhone may "start" at $999 and top of the line models could easily exceed $1,200.   So the question is while Apple does have tremendous brand loyalty - will folks plunk down $1,000 for a device they may use for 2 years.   

 And while Apple and the carriers have various financing & refresh plans  - a $1,000 phone on a 24 month 0% plan is still $41.67 / month on top of your voice/data plan.  A $1,200 phone is an even $50.

 While I have not bought a Huawei phone yet - I do have experience with their high end server lines supporting large scale deployments around the globe.   Huawei products are strong and well supported.  If they can keep their pricing advantage it is very possible they can maintain the #2 spot by the end of 2018.

 As their name get's better acquainted in the Americas markets - I expect to see them continue to take share from Apple & Samsung.  And by the time we start to see 5G GTE deployments in 2020 it would not surprise me a bit to see Huawei reaching for the number 1 spot...


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