Gartner: Huawei sold more smartphones than Apple in Q2 this year

28 August 2018
Huawei has secured the #2 spot for the first time. Meanwhile Samsung's sales fell, Xiaomi's rose.

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Realistic1, 29 Aug 2018In my opitnion - it is result of fatigue on the market. So... moreThen just get a feature phone . Why you get iPhone se?

  • Anonymous

aaa, 29 Aug 2018Why would someone buy a placeholder phone if they're gettin... morehaha..... This is the biggest joke I've ever heard. Huawei mate is for the poor, are you sure?

Have you ever learned how mate got succeeded? When mate 7 released back in 2014, it was so welcome by bosses that it quickly spread to mid level managers of state owned top enterprises and further to middle class of China hence supply became short in mainland China. My friend even asked me to buy two in Hong Kong as he promised to give it as Chinese new year gift to his secretaries. Since then, Mate series have been big successes in China and gradually accepted overseas. In China, Mate is for business man and public servant as its appearance is more orthodox. On the contract, majority of Apple users are students and young girls who don't have money so most of them get it as gift from parents or boy friends. Others buy on loan or extreme actions that made a nickname "Kidney Phone" for Apple as there was a joke saying that a guy sold one kidney for a iPhone.

My niece's first iPhone 6 plus was from me. Since having salary after graduated, she has bought three iPhones, two iPhone 7 for her mother and her younger brother in 2016 (but they both changed to mate 8 soon), a iPhone X for herself. Is she the rich? Except her younger brother, she is the poorest!

BTW, phone is much cheaper than watch or car. In China, iPhone is nothing more than a favorite brand of user experience.

  • Anonymous

Anonymous, 29 Aug 2018"Apple is a 1 trillion company" ; then Huawei is not allowe... moreYeah apple is going to sell like hell in Q4 why? Because apple is a trillion dollars company period.
What is your super power again? Am rich (batman)

  • Anonymous

Huawei sold more than Apple... This, despite the US government forbidding carriers to have partnership with Huawei.

  • Anonymous

"Apple is a 1 trillion company" ; then Huawei is not allowed in us because of spyware. Ican smell war.
If I borrow a Ferrari and I tell you am rich. People are likely to buy a rich man shit than to buy a poor man's treasure. Marketing trick 101

  • Droid

I dont understand why people (isheeps) are happy because apple make high profit margins. Do you know how they do it? By stealing your money. They sell an overall 300$ phone at 1000$ and you are happy. I understand why people call you sheeps. And people saying apple sells only high end premium phones. Apple still selling iphone 6/+ in somes contries , iphone 6s/+/se , iphone 7/+ online. Apple s old flagships are respectively low ends and mid ranges. So stop talking rubbish

mark, 29 Aug 2018t's been called the most successful company in history. ... moreVisionary? Dennis Ritchie deserve more credit than Steve job .

  • Anonymous

No one is pitching Samsung and apple any more...
Samsung is just watching while huawei and apple smash it out by the side.
Apple better up their game else they will find them selves behind oppo or xiaomi

  • Anonymous

Honor 10 GT competes with iPhone X. Good work Huawei.

Mailman, 28 Aug 2018Have you even seen Apple amuall sales reports? Apple sells a single phone in $1000 while others have to sell 3 -6 phones... Simple

  • mark

t's been called the most successful company in history.

And it's just become the world's first public company to be worth $1 trillion (£767bn).

So how's it done it?

Here's a quick look at five of the biggest things that have helped make Apple the gigantic success story it is today.

1. Steve Jobs - a brand unto himself
As the co-founder of one of the world's most successful companies, his is one of the most recognised names in the world of tech.

He put Apple at the forefront of the personal computing revolution, and was behind a suite of revolutionary, highly desirable products - from the iPod to the iPad.

But he was also recognised as one of the modern world's first auteur chief executives - and became a brand unto himself.

Image caption
Steve Jobs wearing his trademark black turtleneck in 2005 at the Macworld Expo
From the time he founded the company with Steve Wozniak in 1976 in Silicon Valley, California, Apple was seen as a firm that was set to achieve great things.

Apple shares were in such high demand that by the time it opted for a flotation in 1980, it became the biggest stock market launch since Ford in 1956.

In 1985, Mr Jobs was famously ousted from the firm he founded after a falling out with chief executive John Scully.

But by 1997, after Apple had been operating at a loss for 12 years, Mr Jobs was asked to return.

He quickly set about scrapping various projects and introduced Think Different - a campaign designed to promote Apple and its products, and revive employee morale. The firm quickly returned to profitability.

When Mr Jobs died in 2011, US President Barack Obama said the world had "lost a visionary".

Apple just wouldn't be Apple without his name behind it.

Profile: Steve Jobs
2. The iPhone - a revolution
Launched in 2007, the impact the iPhone has had on modern mobile communication is unmatched, and unquestionable.

Almost 1.4 million iPhones were sold in the first year they were on the market. Competitors such as Nokia and Blackberry, which had dominated the mobile phone market, were quickly knocked out.

While Apple recently dropped to third place in the battle of the world's biggest smartphone makers, behind South Korea's Samsung and China's Huawei, its iPhones are still clocking strong demand worldwide.

Apple sold 41.3 million of them in the three months to June this year - and about 216 million worldwide last year.

Moreover, Apple's bottom line is still largely determined by their sales. In the most recent quarter, 56% of Apple's revenue came from iPhone sales.

But perhaps more importantly for Apple's future - the iPhone is a gateway to the company's booming services offerings.

3. Apple services - and brand loyalty
Think iTunes or Apple Music, the App Store, iCloud and Apple Pay.

These are just some of the things that make up Apple's services business - and they're regarded as the firm's most important and fastest-growing drivers of revenue.

Apple's market value hits $1 trillion
iPhone demand boosts Apple profits
State firm hosts Apple's data in China
In the three months to June this year, Apple's services saw revenue growth of 31%.

And while the iPhone might be a gateway to Apple's offerings, things like Apple Music and the App Store, in turn, help drive brand loyalty.

If a consumer truly loves using their iPhone to buy music and movies, Apple's hope is that they'll move on to purchase an iPad, a Macbook, an Apple TV or watch.

"That's the financial genius that sits inside that brand - getting consumers to keep buying the hardware," says Paul Nelson, managing director of BrandMatters.

"Strong brands have clients who are simply disinterested in alternatives - and that's where Apple's strength lies. The fact that you just become a loyalist."

4. China - and growth
Without China, the world's biggest smartphone market, Apple's success would look quite different.

Mainland China generates about a quarter of Apple's profits.

Image caption
The iPhone is a symbol of prestige among China's middle class
In addition, most of Apple's iPhones are manufactured in Shenzhen in southern China

And while the company suffered a rough patch between March 2016 and July last year - when its Greater China revenues saw double-digit falls - the tech giant has now reversed those fortunes.

Since September 2017, Apple has seen double-digit year-on-year revenue growth across the Greater China region.

How? Well, the iPhone has remained a symbol of wealth and prestige among China's growing middle-income, big city dwellers.

So despite the stiff competition from cheaper home-made brands, Apple's more lucrative iPhones, iPads and Macs have helped repair its regional revenue numbers.

5. The Apple brand today
The Forbes list, which measures the value of a company's brand by looking at its financial numbers, has ranked Apple as the most valuable brand for the last eight years in a row. This year, it was valued at $182.8bn.

Image caption
The most recognisable logo today?
Now Forbes may only analyse companies with a presence in the US, but compare Apple's brand value to that of Coca-Cola's - a one-time world leader in terms of brand recognition - this year valued at just $57.3bn.

For those of us born before the turn of the millennium, it's probably difficult to imagine a world without Coca-Cola signs somewhere along our local shopping streets.

But for the generations that follow, the instantly recognisable eaten apple seems set (so far) to be one of the brands of the 21st Century.

"The thing that Apple has been able to do, that Coca-Cola hasn't been able to, is to remain relevant and contemporary," says BrandMatters' Paul Nelson.

"They have kept the human at the centre of their ecosystem, and at the centre of everything they do. Their whole brand is about humanising technology.

"The reason you get to a trillion dollars is that you create in your business model built-in barriers for customers to move elsewhere. And Apple is just that - it's a complete ecosystem."

In my opitnion - it is result of fatigue on the market.
So many smartphones out there - yet they all do same tasks the same way. And people don't know what to choose since there's just so many - so they pretty much choose what's good for their wallet.

90% of the people just needs a phone for basic tasks, and Chinese phones offer that for a low price. Just a phone and that's it. Also, phones are most abused pieces on tech on the planet - it is easier to replace cheap phone you shattered, and you are also less worried about it.
My life became easier with iPhone SE, not because iOS is that great but because I'm overall spending much less time on my phone, it fits my pocket better and I can use it with single hand. Plus, I got it for really cheap price, so I don't even worry if I shatter it. I basically got my life back (spending more time with my pets and actually talking to people IRL).

The last Oracle, 28 Aug 2018The Chinese phone makers are making an all-out attack again... moreApple always has their user base.
iPhone X was a bit controversial, the same like iPhone 7.

With new iPhones and budget version of iPhone Apple will probably get a nice boost in sales. Another advantage is that Apple even has chipsets that are so much faster than Androids that iPhoneX from 2017 still runs circles around 2018 Androids.

  • Duel

Samsung 72,336.4 m 82,855.3 m
Huawei 49,846.5 m 35,964.3 m

Easy to see who's sales Huawei is stealing.

  • Anonymous

The last Oracle, 28 Aug 2018The Chinese phone makers are making an all-out attack again... moreBetter check again, Huawei increase was not at the expense of Apple. Samsung takes the largest hit.

And iPhone 8 a low end phone?! What are you talking about?

Anonymous, 29 Aug 2018my prediction for Q4 2019 Huawei - 1 samsung -2 apple ... moreMaybe in year 3000. Stop wishing

  • mark

the question here is how many models are they selling just compared to apple? LOL they have a bunch of models thats why they sold more smartphones than apple..

huawei sold more phones because of homecredit. hahaha

  • S6 User

Here's a bit more background about this story as well as GSMA's 'RELATED'.

Tech Tent: Who can topple trillion-dollar Apple?
Apple may not be too worried if they don't sell as many phones as their competitors.
'Its average selling price and its profit margins are way higher than any of its rivals can manage':
https://www.bbc.co.uk/news/technology-45063005?intlink_from_url=https://www.bbc.co.uk/news/topics/crr7mlg0gqqt/apple&link_location=live-reporting-correspondent

It's not just it's iPhones (& other hardware), but also it's services, 'iTunes or Apple Music, the App Store, iCloud and Apple Pay', and of course China:

Five big things that have made Apple
('Apple recently dropped to third place'):
https://www.bbc.co.uk/news/business-45044963?intlink_from_url=https://www.bbc.co.uk/news/topics/crr7mlg0gqqt/apple&link_location=live-reporting-story

  • Omid12Omidvar

So it is merely absolutely fabricated lie that Huawei uses spyware in its smartphones and other products....This news is the best news to prove wrong news spreading ! I myself don't have Huawei smartphones but I can't deny that Huawei smartphones unlike previous years are ultra privacy and affordable for majority of people worldwide.My favorite Huawei Mate 10 price here is $ 1500 plus which is very unjust !!!?Whose faults are these !!!?Dealers or unknown revengeful ..,.Thanks GsmArena to write facts and Huawei to vividly expressing the culprits....

  • Anonymous

Not a difference if Huawei sold more phones. Apple has way less phone models than Huawei and still sell a truckload. Apple has superior software support and warranty while Huawei fluff around on updates. Even though they improved a bit they still have a long ways to go.
The warranty support is pathetic compared to Apple.