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July 23, 2015

Sales of Huawei Smartphones Soar

For a while now, analysts at International Data Corporation (IDC), an American market research, analysis and advisory firm, have been predicting that the worldwide smartphone market will continue to see its overall growth slow in 2015. The feeling has been that with competition increasing at the low end of the smartphone spectrum and saturation seeping in at the high end, it will be tough to sustain mobile growth.

IDC says that global smartphone shipments will grow just 11.3 percent this year, representing a major drop from 27.6 percent in 2014. The changes are attributed, in part, to the Chinese smartphone market reaching saturation, which will make 2015 the first year that China’s smartphone growth will be slower than the worldwide market.

China’s smartphone market is still considered to be the largest in the world however it seems to have lost some of its momentum as it is no longer growing as before. Earlier, in May, it was reported that smartphone shipments in China had decreased for the first time in nine years.

It seems that someone forgot to tell Huawei about the smartphone slowdown. As far as sales go in China, Huawei managed to defy a slowdown hitting its rivals Samsung and Xiaomi. On July 20, 2015, Huawei released its earnings results for the first six months of the year, posting a 30 percent increase in revenue to $28.3 billion, thus giving a more positive outlook for further growth in 2015.

Huawei also saw a substantial year-over-year rise in the shipment of its smartphones. The company witnessed a 39 percent rise, reaching 48.2 million as the number of smartphones shipped in the first half of this year.

The boost in sales figures follows the firm saying that it would get rid of its low-cost appeal and includes selling high-margin premium models as a way to challenge Samsung and Apple at the top-end of the market. In fact, according to Huawei there was a 69 percent increase in its consumer business group revenue thanks to strong sales from high-end smartphone models.

China’s smartphone market is still the largest in the world, but it’s no longer growing as it has in the past. Huawei, the Shenzhen-based company is listed as the world's largest telecommunications equipment maker and the fourth largest smartphone manufacturer. It seems that even competing at the high-end of the market, the company has found a way to keep moving forward and increase its shipment of smartphones.




Edited by Dominick Sorrentino


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