Huawei Overtakes Apple to Become No.2 Smartphone Maker

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Global smartphone production volume may decline by Up to 5% in 2019, and Huawei would overtake Apple to become world's second largest smartphone maker, says TrendForce.

eetasia, Jan. 16, 2019 – 

Global smartphone production volume for 2019 is expected to be 1.41 billion units, a decrease of 3.3% compared with 2018, according to the latest report by TrendForce. Brands would record lower production volumes this year because the overall demand outlook in the global smartphone market remains weak. The lack of breakthrough features or specs has made the consumers less active than before with respect to replacing their existing devices. If the demand outlook becomes worse, together with uncertainties and impacts from the U.S.-China trade war, the decline in global smartphone production may reach 5% in 2019.

As for the global ranking of smartphone market share, Samsung would remain the market leader, while Huawei is expected to surpass Apple to become the world's second largest smartphone maker. Apple would then take the third place.

TrendForce notes that Samsung produced 293 million smartphones in 2018, a YoY decline of 8%. Its market share has been shrinking as well. While Chinese brands actively explore lower end and emerging overseas markets, it is relatively difficult for Samsung to develop new business fields, because it has already had a complete deployment in the low-, middle- and high-end segments.

Moreover, Samsung has involved in fierce price competition with China's domestic brands, so it would adopt more aggressive strategies this year in terms of specifications and pricing to compete with its Chinese rivals. For 2019, Samsung still aims to maintain its existing market share while actively exploring emerging markets. It is expected to remain the leading smartphone maker worldwide with a global market share of 20%.

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