Every coin has two sides. Currently, Huawei takes the third place in the Smartphone race, after Apple and Samsung. However, the two have every reason to worry now given the slow but steady rise of Huawei. The Chinese telecom giant, which has been eying the key global markets, has its ambitions well packed into place.
One of its lofty ambitions is taking the second position in the Smartphone market. The company is perhaps riding on the positivity of its sales, which in 2016 increased close to 27% higher than the previous year. On the other hand, its rival’s shipments fell 4.3%. Apple’s share of the market fell by 1.5% to 14.4% while its counterpart decreased by 2% points to hit 20.5%.
But will Huawei it be able to meet this aggressive target?
Huawei has opened a huge gap in its home market; China, which is the primary target despite Apple’s presence. The company is also clinging onto the growing adoption of LTE connections in China, which is expected to increase the demand in Smartphones. In 2016, 76.6 million phones were shipped by Huawei. Within the same time, Apple’s Chinese shipments fell by a whopping 23% to 44.9 million units.
As if this is not enough, Huawei is also targeting to gain entry into the Indian market. Its aim is to have 10% of the Indian Smartphone’s market by close of 2017. The target may not be a surprise given the speculation surrounding India’s annual Smartphones sales of reaching 200 million units in 2020. Besides, Huawei is already carrying out manufacturing operations in India and word has it that its goal is to manufacture 3 million units by the end of 2017.
Let’s explore the undisclosed about Huawei’s robust growth
Huawei has had an extensive product portfolio, which apparently covers all segments of the Smartphones market. On the other hand, its feature phones, which cost less than $100 have been a stepping stone to bringing customers to its stores and in return increasing the brand awareness.
Apple has 491 stores spread across the globe. However, the store’s presence in India and China is not as noticeable as that of Huawei stores. By comparison, Apple had 40 stores in China as at the end of June 2016, a figure way below the Huawei’s 11,000 stores on the mainland. Huawei has further obtained partnerships from not less than 50,000 retail outlets in India.
Clearly, Apple and Samsung are facing fierce competition not unless they put their acts together.