BrandArena: Huawei is now the world's most profitable Android smartphone brand

Tuesday 29 November 2016

Huawei is now the world's most profitable Android smartphone brand

Huawei Technologies, China’s largest telecommunications equipment manufacturer, has leapfrogged Samsung Electronics to become the second most profitable smartphone supplier in the world in the three months ended September 30, according to research firm Strategy Analytics, a Massachusetts market research and consulting firm.

While Apple remains smartphone industry leader in terms of profitability, with a 91 per cent global market share in the third quarter. Huawei managed to push Samsung behind in terms of Q3 profits by earning an operating profit of $0.2 billion from its global operations in Q3. This represents a 2% share of all profits from smartphones and is actually the first time since its inception. The numbers rely on sales estimates for the quarter ending September 2016.

Vivo and OPPO took the 3rd and 4th place in smartphone profitability worldwide for Q3. These two firms garnered about 2.2% of the profits each. This boost was due to the blow taken by Samsung recently. Although, Huawei’s height was also influenced by its effective marketing, sleek products designs, and supply chain efficiency have made significant contributions to the enhanced profitability. Soaring shipments across the Asian region and disciplined pricing, which also helped Vivo and OPPO in improving their profitability.

However, despite Huawei profits, the company can hardly rest because Apple still continues to rule the smartphone markets, garnering as much as 91% of all profits from smartphones for Q3. The iPhone makers earned about $9 billion in operating profits from sale of smartphone hardware alone in Q3 but with the launch of Hauwei’s much-awaited smartphone, “Mate 9” this November, Huawei should be looking at an equally healthy Q4.

Research firm IDC last month estimated that Huawei had a 9.3 per cent market share in the third quarter to remain the global No 3 smartphone supplier, behind Samsung and Apple. Oppo and Vivo followed with a 7 per cent and 5.8 per cent global share, respectively.

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