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Huawei still number two smartphone seller despite US sanctions

The Chinese firm managed to boost its sales even as the overall market declined, remaining on the heels of sector leader Samsung and ahead of US-based Apple.

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Published : Aug 1, 2019, 12:53 PM IST

Washington: Huawei remained the number two global smartphone vendor in the past quarter despite tough US sanctions imposed on the Chinese technology giant, market trackers said Wednesday.

The Chinese firm managed to boost its sales even as the overall market declined, remaining on the heels of sector leader Samsung and ahead of US-based Apple.

According to Strategy Analytics, overall global smartphone sales fell 2.6 percent to 341 million units in the April-June period.

Samsung increased its market share to 22 percent, helped by a seven percent rise in handset sales, mainly in the mid-range and entry segments. The South Korean giant stayed ahead of Huawei at 17 percent, and Apple at 11 percent of the market.

"Huawei surprised everyone and grew its global smartphone shipments by eight percent annually," said Strategy Analytics executive director Neil Mawston.

Read More: Google Pay to now send SMS alerts for secure transactions

"Huawei surged at home in China during the quarter, as the firm sought to offset regulatory uncertainty in other major regions such as North America and Western Europe." The research firm estimated that Apple, which released its results this week without details on unit shipments, saw an eight percent drop in iPhone sales in the quarter.

"Apple is stabilizing in China due to price adjustments and buoyant trade-ins, but other major markets such as India and Europe remain challenging for the expensive iPhone," said Woody Oh, director at Strategy Analytics.

A separate report by Counterpoint Research offered similar findings, showing Samsung, Huawei and Apple in the three top spots as overall sales fell.

Analyst Tarun Pathak at Counterpoint said, however, the US ban on technology sales to Huawei will have an impact in the coming months.

"The effect of the ban did not translate into falling shipments during this quarter, which will not be the case in the future," Pathak said.

Anthony Scarsella of the research firm IDC, which also issued similar findings, said the market is seeing signs of stabilizing.

"A key driver in the second quarter was the availability of vastly improved mid-tier devices that offer premium designs and features while significantly undercutting the ultra-high-end in price," Scarsella said.

"Combine this with intensified and generous trade-in programs across major markets and channels, and upgrading now makes more sense to consumers."

The surveys indicated Chinese makers Xiaomi and Oppo holding the fourth and fifth spots, largely due to sales in their home markets.

According to Counterpoint, the combined global smartphone market share of Chinese majors Huawei, Oppo, Vivo, Xiaomi and Realme reached 42 percent, the highest it has ever been.

Washington: Huawei remained the number two global smartphone vendor in the past quarter despite tough US sanctions imposed on the Chinese technology giant, market trackers said Wednesday.

The Chinese firm managed to boost its sales even as the overall market declined, remaining on the heels of sector leader Samsung and ahead of US-based Apple.

According to Strategy Analytics, overall global smartphone sales fell 2.6 percent to 341 million units in the April-June period.

Samsung increased its market share to 22 percent, helped by a seven percent rise in handset sales, mainly in the mid-range and entry segments. The South Korean giant stayed ahead of Huawei at 17 percent, and Apple at 11 percent of the market.

"Huawei surprised everyone and grew its global smartphone shipments by eight percent annually," said Strategy Analytics executive director Neil Mawston.

Read More: Google Pay to now send SMS alerts for secure transactions

"Huawei surged at home in China during the quarter, as the firm sought to offset regulatory uncertainty in other major regions such as North America and Western Europe." The research firm estimated that Apple, which released its results this week without details on unit shipments, saw an eight percent drop in iPhone sales in the quarter.

"Apple is stabilizing in China due to price adjustments and buoyant trade-ins, but other major markets such as India and Europe remain challenging for the expensive iPhone," said Woody Oh, director at Strategy Analytics.

A separate report by Counterpoint Research offered similar findings, showing Samsung, Huawei and Apple in the three top spots as overall sales fell.

Analyst Tarun Pathak at Counterpoint said, however, the US ban on technology sales to Huawei will have an impact in the coming months.

"The effect of the ban did not translate into falling shipments during this quarter, which will not be the case in the future," Pathak said.

Anthony Scarsella of the research firm IDC, which also issued similar findings, said the market is seeing signs of stabilizing.

"A key driver in the second quarter was the availability of vastly improved mid-tier devices that offer premium designs and features while significantly undercutting the ultra-high-end in price," Scarsella said.

"Combine this with intensified and generous trade-in programs across major markets and channels, and upgrading now makes more sense to consumers."

The surveys indicated Chinese makers Xiaomi and Oppo holding the fourth and fifth spots, largely due to sales in their home markets.

According to Counterpoint, the combined global smartphone market share of Chinese majors Huawei, Oppo, Vivo, Xiaomi and Realme reached 42 percent, the highest it has ever been.

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Sensex tanks over 200 points in early trade
         Mumbai, Aug 1 (PTI) Equity benchmark BSE Sensex on Thursday tanked over 200 points in early trade on concerns over weak core industrial growth data and sustained foreign fund outflows.
         The 30-share index was trading 205.69 points or 0.55 per cent lower at 37,275.43; and the broader Nifty also fell 16.15 points or 0.44 per cent to 11,069.25.
         In the Sensex pack, Vedanta took the biggest hit, trading 2.92 per cent lower, followed by Tech Mahindra, Yes Bank, Tata Motors and Tata steel.
         However, Power Grid, IndusInd Bank, ICICI Bank, Asian Paint, Maruti and HCL Tech, were trading in the green.
         In the previous session, Sensex gained 83.88 points or 0.22 per cent to end at 37,481.12. The broader NSE Nifty ended 32.60 points or 0.29 per cent up at 11,118.00.
         The markets continue to witness persistent outflow of foreign funds from equities.
         Foreign investors sold shares worth Rs 1,497.07 crore on a net basis on Wednesday, as per provisional data with stock exchanges.
         Growth of eight core industries dropped to 0.2 per cent in June, mainly due to contraction in oil-related sectors as well as cement production, according to official data.
         The government on Wednesday also revised downwards the growth rate of these eight sectors for May to 4.3 per cent from the earlier estimate of 5.1 per cent.
         Overall investor sentiment was weak after the government on Wednesday released the core industries output growth numbers, which dropped to 0.2 per cent in June, experts said.
         Meanwhile, the government's fiscal deficit touched Rs 4.32 lakh crore for the June quarter, which is 61.4 per cent of the budget estimate for 2019-20 fiscal.
         The US Federal Reserve reduced the benchmark lending rate by 25 basis points to 2.0-2.25 per cent on Wednesday for the first time in more than a decade.
         Elsewhere in Asia, Shanghai Composite Index and Hang Seng were trading lower, while Nikkei and Kospi were in the green in their respective early sessions.
         US stocks ended on a negative note on Wednesday.
         Meanwhile, the rupee declined by 32 paise to 69.12 against the US dollar in morning trade.
         The global oil benchmark Brent crude futures rose 0.70 per cent to 65.17 per barrel. PTI
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