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Holly LaFon
Holly LaFon
Articles (7842) 

Huawei Beats Apple to Become 2nd Largest Smartphone Brand

China's Huawei took more market share in June and July

September 06, 2017 | About:

China’s Huawei has surpassed Apple (NASDAQ:AAPL) in global phone sales for the first time ever in June and July, making it the No. 2 global seller, according to Counterpoint Research.

Huawei, China’s largest smartphone maker, makes it second only to the No. 1 player Samsung (XKRX:005930) in sales as it has encroached on Apple’s market share. Apple has been a star in Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway portfolio, and Samsung has been one of the largest holdings at Yacktman Asset Management, a prominent value investing firm, for years.

For each consecutive month from December through June, Apple’s percentage of global smartphone sales declined to the high single digits from the high teens. Huawei more recently advanced in market share, increasing sales each consecutive quarter to the low teens in July from the high single digits in March.

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China’s technology companies have rapidly taken leading positions in China, Europe, Asia and Latin America, making it difficult for Samsung and Apple to sell in these markets, in addition to posing other competitive challenges, the report said.

“Chinese brands are growing swiftly thanks not only to smartphone design, manufacturing capability and rich feature sets, but also by out-smarting and out-spending rivals in sales channels, go-to-market and marketing promotion strategies,” Counterpoint’s associate director Tarun Pathak said.

For the past year, Apple’s iPhone sales have wavered. They beat their comparable months in the June and December quarters but posted year-over-year declines in the May and September quarters. In the June quarter, the most recently reported, Apple sold 41.026 million iPhones against 40.399 million in the same quarter last year, a 3% rise. Customers grabbed 38.5 million Huawei smartphones in the second quarter, Counterpoint Research said.

Yacktman Asset Management, where Donald Yacktman (Trades, Portfolio)’s son, Stephen Yacktman, makes investment decisions, called its holding Samsung in a first-quarter letter, “a powerful global business whose stock remains, in our view, attractive, due to its well-positioned businesses, low valuation and strong balance sheet.”

Buffett owns an $18.75 billion stake in Apple as his third largest holding and told CNBC last week that he has “never sold a share.”


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