Huawei moves past Apple to become world's second largest smartphone seller

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As per Counterpoint Research's latest report, OnePlus transcended Samsung to lead the premium smartphone segment for the first time ever (for full quarter) during the second quarter of the year 2018. The segment (priced Rs 30,000 and above) saw a 10 per cent growth compared to the March 2018 quarter "as more consumers upgraded to 2018 flagship launches by different Android OEMs in India", Counterpoint said in its report. This is thanks to its success in China where it holds a "record" 27 per cent of the market, IDC notes, along with the success of its Huawei P20 and P20 Pro flagships and cheaper Honor-branded mobes. Two models from that range now hold the first and third spots on benchmarking firm DxoMark's leaderboard for the best camera-equipped mobile devices, while the iPhone X is at #7 on that list. Huawei with its sub-brand, Honor, is offering a broad and refreshed portfolio at an affordable price which is driving growth in the overseas market.

Samsung retained the smartphone crown but lost ground to upstart Huawei by shipping 73 million units, an 8 percent decline year-over year. Q2 2018 was the third consecutive quarter of year-over-year declines, IDC said.

The mobile market is tough to crack.

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With Apple expected to unveil a trio of new iPhones in September, including a budget 6.1-inch LCD variant, the company is all set to reclaim its position in the smartphone market from Huawei in Q3.

Samsung remains as the leader with Apple placing itself in the third place.

Multiple market analysts said that Huawei's rise came as the slowdown in China, the world's largest market for smartphones, eased, with growing market share in Europe. "Huawei's exclusion from the USA has forced it to work harder in Asia and Europe to achieve its goals".

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Apples troubles are partly because the iPhone 8 and iPhone X are getting old (new models coming soon) and because of the higher duty tax (which was raised to 20% on April 1).

As the iPhone is still Apple's most-important product, accounting for about 60 per cent of revenue, analysts were looking for 41.6 million iPhone units in the quarter, and an average selling price of US$699, according to estimates compiled by Bloomberg News. That may seem a bit low for a premium segment, but its partly because OnePlus and others are aggressively pushing high-end phones below the INR 40,000 mark and are skewing the market.

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