Thursday, January 3, 2019

Huawei Says Cell Phone Sales In China Just Fine, Thanks For Asking

Huawei didn't actually say that but a quick perusal of the last few month's headlines tell the story.
First up the South China Morning Post, July 26:

Growth in market share for Huawei was mainly due to a strong performance from its budget Honor brand
...The Canalys report did not specify Apple’s market share, putting the Cupertino, California-based technology giant into the category of “smaller vendors” in China....  
Soooo, Huawei not going after the $1000 USD market then.
Motley Fool, December 4:

Cheap Phones Are Driving What Little Growth Is Left in the Smartphone Market
...The global smartphone market has been maturing for years, with overall unit volumes continuing to plateau. That's caused endless consternation for Apple (NASDAQ:AAPL) investors, which is largely why the Mac maker has been futilely trying to get shareholders to better appreciate its growing and highly profitable services business in recent years. What little growth that is left is being driven by low-cost handsets from Chinese vendors...
That's global but if anything reinforces the trend in China.
On December 27th Motley Fool headlined:
As Apple Hides iPhone Unit Data, Huawei Cracks 200 Million Smartphone Shipments in 2018
These two smartphone makers' unit-shipment trajectories appear to be diverging.

While yesterday, before the Apple Announcement:
Is Apple at Risk of Becoming the Next BlackBerry?

Ouch, that's gotta sting.

Sticking with global rather than just Chinese markets: 
Gadgets 360
Samsung Smartphone Sales See Massive Decline, Huawei Grows 43 Percent in Q3 2018: Gartner
...Instead of Samsung and Apple slicing a big portion of the Q3 2018 sales figures, research firm Gartner says that Chinese brands like Huawei and Xiaomi this time helped in driving global smartphone sales. Overall growth of smartphone sales was only 1.4 percent in the third quarter of 2018, with 389 million units shipped in total. Samsung saw a drop in sales, while Apple saw a measly sales growth of 0.7 percent in the third quarter, when compared to the last quarter. Huawei, in particular, performed significantly well in Q3, due to strong sales of its Honor devices....
And for 2019?
Ireland's Silicon Republic says Huawei may become the world's largest cell phone seller by specifically not going after the high end of the market.

January 2
Huawei eyes No 1 by closing gap with new P Smart device in 2019
... Huawei sold 200m smartphones worldwide in 2018 and has revealed that a new device, the P Smart, which is aimed at the mid-market, will be launched in February...
Maybe just maybe there is a strategy problem in Cupertino.
Instead of spending $5 billion on the new headquarters: 
And $4 billion on Beats headphones, and a couple bazillion on stock buy-backs they maybe should have spent a few yuan on figuring out where the market was going.