The Chinese tech company shipped 55.8 million phones in the three months ending in June, outpacing long-time rival Samsung with $ 53.7 million.
“Taking first place is very important for Huawei,” said Canalys analyst Mo Jia. “It is desperate to show its brand strength to domestic consumers, component suppliers and developers.”
Huawei still suffered an annual decline in smartphone shipments 5%. According to Canalys, Samsung was much larger than 30%.
The market research firm said that Huawei’s win over Samsung would not happen without the Kovid-19. The company was able to take advantage of the economic recovery in China, where Huawei now sells more than 70% of its smartphones. Samsung has very little presence in China.
Huawei’s global smartphone and telecom gear business is suffering the brunt of US sanctions that have pushed the company away from major US technology and supplies.
“It will be tough for Huawei to maintain its lead over the long term. Its major channel partners in major regions, such as Europe, have been wary of growing Huawei devices, taking fewer models, and new to mitigate risk The brand is bringing in. After the global economy recovers, strength in China alone will not be enough to sustain Huawei.
“Our business has shown exceptional resilience in these difficult times,” Huawei spokeswoman Evita Cao said. Cao did not respond to questions on how the company could proceed.
Samsung reported operating profit of 8.15 trillion won ($ 6.8 billion) for the three months ending in June, a 23% increase from the same period last year.
Samsung said sales were up nearly 6% to 53 trillion won ($ 44.6 billion).
According to a Canalys report, despite a double-digit decline in annual smartphone shipments for the quarter, Samsung reported that the unit remained profitable to save on marketing costs. (Samsung does not reveal anything about its smartphone shipments, but they said they rejected it.)
For the second half of 2020, however, Samsung is warning that “uncertainties related to the Kovid-19 linger” for its mobile business.
According to research firm Christian Ide, this may be enough to drag the company to a loss of revenue for the year.
A note earlier this month wrote, “The consumer electronics unit, which includes smartphones and televisions, is likely to witness a decline in demand for Kovid-19 and a global shutdown.
IDC analysts said in a note last month that worldwide smartphone shipments were likely to fall by 18%, as the epidemic affects consumer spending.
The market research firm said that global smartphone shipments are not expected to return growth until the first quarter of 2021.