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Yu: Huawei will top Apple and Samsung to be top smartphone manufacturer in 5 years

Posted: , by Alan F.

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Yu: Huawei will top Apple and Samsung to be top smartphone manufacturer in 5 years
Huawei has some ambitious goals for its smartphone business. According to Richard Yu, chairman of Huawei Devices and CEO of Huawei's consumer business group, the company will leap frog Apple in two to three years and become the second largest smartphone manufacturer. In five years, Huawei plans to become the largest player in smartphones, topping current leader Samsung.

Huawei currently owns the third largest global market share among smartphone manufacturers, but showed strong year-over-year growth in 2015. That is expected to continue this year with the company aiming to increase shipments by 30% over 2015's number. According to Yu, Huawei will increase its ties with U.S. carriers this year. The manufacturer became more widely known in the U.S. last year thanks to the successful launch of the Nexus 6P, which was Huawei's first Nexus device.

Last year, Huawei sold 104.1 million smartphones world-wide. That was good for 7.3% of the market, and was up 53% from the 68.1 million the company sold in 2014. Apple sold 225.9 iPhones in 2015 for a 15.9% market share. Samsung led the way with 320.2 million phones sold last year. That gave the company 22.5% of the smartphone market.

Can Huawei top both Apple and Samsung in five years? It is going to require strong annual performances by the company while both Apple and Samsung stagnate, or worse. Hopefully we will remember this boast from Richard Yu and will re-examine this in 2021.


source: Digitimes

52 Comments
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posted on 24 Feb 2016, 01:26 1

1. HonestRealist (Posts: 196; Member since: 25 Jan 2016)


Goooooood luck Whoarewe

posted on 24 Feb 2016, 04:10 1

27. Bm888 (Posts: 390; Member since: 06 Jul 2015)


Huawei has come a long way..it has upped the mobile innovation game and differentiates it's brand rather than copying. . Huawei is the Samsung of China ..lol

posted on 24 Feb 2016, 05:10

28. S.R.K. (banned) (Posts: 678; Member since: 11 Feb 2016)


posted on 24 Feb 2016, 05:11 1

29. S.R.K. (banned) (Posts: 678; Member since: 11 Feb 2016)


Lol...."WhoAreWe"..

posted on 24 Feb 2016, 01:29 8

2. Jason2k13 (Posts: 1171; Member since: 28 Mar 2013)


No matter how good their products are, the name 'Huawei' by itself, would put off many customers particularly in the Western countries. The reason why the nexus

posted on 24 Feb 2016, 01:35 8

3. Jason2k13 (Posts: 1171; Member since: 28 Mar 2013)


*** the reason why huawei nexus was selling was because of the 'nexus' brand name.

posted on 24 Feb 2016, 02:06 3

6. NoToFanboys (Posts: 1204; Member since: 03 Oct 2015)


So, are you telling me that most people on Western countries choose their phones based on brands/names?

posted on 24 Feb 2016, 02:26

10. MrElectrifyer (Posts: 2326; Member since: 21 Oct 2014)


Sadly, that's just how stunned most are around here..."if it ain't popular, it ain't good" is the usual thought process, that's how samsung, apple and beats sell their devices a lot; advertising.

https://www.youtube.com/watch?v=ZsxQxS0AdBY

posted on 24 Feb 2016, 03:03 2

19. NoToFanboys (Posts: 1204; Member since: 03 Oct 2015)


truth sucks, sadly the fanboys are still saying "most of people buy this and that because they're the best blah blah blah".

posted on 24 Feb 2016, 02:46 1

16. Jason2k13 (Posts: 1171; Member since: 28 Mar 2013)


Yes thats right, not all but "most", if it aint a popular brand people dont want it. The only reason Huawei is doing well is because of the low price of their devices and they are not making much money on it. If Huawei Sold their phones the same prices as Apple and Samsung, they will go bankrupt because Apple and Samsung are just too well established now, especially in Western and developed countries.

posted on 24 Feb 2016, 02:58 1

18. NoToFanboys (Posts: 1204; Member since: 03 Oct 2015)


Wow, I thought this kind of stuff only happens in 3rd world countries, for example in our country, if you go around asking people why they like iPhones (not bashing iPhone, just an example since it's so popular), they always answer "because its good", then when you ask why, they'll say "it's expensive, it must be good" or "because it's popular"

posted on 24 Feb 2016, 03:16

21. Jason2k13 (Posts: 1171; Member since: 28 Mar 2013)


The thing is, when buying from well established brands you are guaranteed a warranty, and there's always service centers nearby. You will also find more accessories and support for those phones. If i buy a Huawei phone now and it's broken, I may need to ship it to China or HongKong for repairs. Those things alone, are good enough reasons to buy popular brands.

posted on 24 Feb 2016, 05:14

31. S.R.K. (banned) (Posts: 678; Member since: 11 Feb 2016)


Look at Apple. They have been trying for 30 years to gain market and recognition and brand. Finally some stupid dumbass idiots made them a hype, and now look at them.

posted on 24 Feb 2016, 10:47

42. MSi_GS70 (unregistered)


Unfortunately westerns are too thick.. Looks like.. They cannot check how truly item good is..

posted on 24 Feb 2016, 02:11 1

7. Nibbler1 (Posts: 30; Member since: 03 Apr 2015)


What do you think Samsung was 10 years ago in Europe , cheap Korean brand.I remember, the big stores refused to sell their products, they could only compete with others with low prices.Look at them now, they are at the top, but I agree, the name Samsung still sounds cheap, maybe that will change in ten years :)

posted on 24 Feb 2016, 02:40 2

13. Jason2k13 (Posts: 1171; Member since: 28 Mar 2013)


Where in Europe do you live? As far as i know, Samsung was a big name around the world since 2000's, but was still new to the mobile phone industry. It's alot different now, where the Internet is almost available to everyone, even to the remote region where smartphone can be bought for $4 now. This means the world has gotten smaller where people can find out about everything just by going on the internet. If Apple and Samsung continue to market their products just as much as Huawei, Huawei will find it hard to penetrate the Western Countries because Samsung and Apple are already well establish. The only way for Huawei to beat Samsung and Apple is to provide new features, that no other phone has and market the hell out of it and to prove useful, same goes for Samsung to beat Apple.

posted on 24 Feb 2016, 02:42 1

14. belovedson (Posts: 986; Member since: 30 Nov 2010)


thats definitely not true. 10 years ago no one really competed against nokia but motorola. but that soon changed when verizon started coming out with beastly samsung flip phones about eight years ago. in fact nokia started going sideways and finally backwards and Samsung has been steamrolling since than

posted on 24 Feb 2016, 01:56

5. Dr.Phil (Posts: 1119; Member since: 14 Feb 2011)


From a business standpoint, they don't necessarily have to do good in Western countries. They just have to be moderate in their sales. The region they should focus on and I'm sure they're going to see large gains in is Asia. If they do well there, then it's very easy to claim the title of top smartphone manufacturer.

Consider this: China has more smartphone users than the United States, Brazil, and Indonesia COMBINED (*according to Business Insider report). So as long as they show modest sales in the Western regions and over the top sales in Asia then they could be on their way to claiming the title.

posted on 24 Feb 2016, 02:27 1

11. pendragon0202 (Posts: 89; Member since: 23 Feb 2015)


True, but China is also a market infested with so many players resulting in razor thin margins. No one can reach the top without dominating in very lucrative NA market.

posted on 24 Feb 2016, 02:44

15. belovedson (Posts: 986; Member since: 30 Nov 2010)


you so smart i agree. Considering China is the only nation that can make premium phones at third the cost of all manufacturers they shouldn't have much competition outside europe and in the states.

Not really a bold move or expectation from H

posted on 24 Feb 2016, 02:31

12. Dr.SamX (Posts: 153; Member since: 19 Jan 2015)


HAHAHA
What???
Huawei make some of the most beautiful phones on the market and is associated with premium metal devices!

posted on 24 Feb 2016, 03:22 1

22. Kumar123 (limited) (Posts: 559; Member since: 15 Jan 2015)


No matter how hard you try Samsung fanboy you can't stop Chinese invasion in the smartphone industry and your beloved Samsung going to feel the pain mostly because people still associated Samsung with cheapness and they are all in the android ecosystem. Apple will be OK with their own ecosystem. Maybe a slight dip in the profit margin but overall Apple will be OK.

posted on 24 Feb 2016, 03:27 1

24. TerryTerius (Posts: 1587; Member since: 10 Apr 2014)


Not unless Huawei makes significant progress in the high-end of the market, where Samsung (and everyone else) actually makes their money. With the extreme saturation at that end of the scale we already have and the sheer dominance of Samsung and Apple above the $500 price point, I find it difficult to believe that will actually happen. But we shall see. Maybe it will, but I'm highly skeptical.

Chinese smartphones have been so successful because their prices are lower than their competitors as they're selling their phones at cost or at a loss. The high-end of the market is a whole different animal altogether.

posted on 24 Feb 2016, 03:39 1

26. Kumar123 (limited) (Posts: 559; Member since: 15 Jan 2015)


Oh, don't worry they will make significant progress in the high-end market. With huge cash flow from their other divisions and chinese goverment back up and proper branding people will forget how "cheap" Huawei phone was. With great innovation, right marketing, great design people will associate Huawei with innovation. Its not very hard to change people's perception, it'll take time but its very much possible. And its also help Huawei that they are the only chinese company that refuses to sell their high end phone at basic price.

posted on 24 Feb 2016, 07:43 1

36. TerryTerius (Posts: 1587; Member since: 10 Apr 2014)


I would argue the exact opposite of that is true. Cadillac has been trying to shake off the stigma aa supposedly being "unworthy" of being compared to their European competitors for a decade and a half. People genuinely think Chicago is the most dangerous city in America even though it's not even in the top 20. There are a LOT of people that still think of Samsung as being a cheap knockoff of Apple or that Android phones are terrible despite having never used one, or having used one years ago. Once something has a reputation, that becomes very difficult to shake off.

That aside, brand power is hugely important. Especially when you're asking people to spend large sums of money on something non essential. That's the reason Hyundai and Kia are having enormous difficulty breaking into the Luxury market. That's the reason Microsoft is/was having far more success in the low end than the high end in mobile. This isn't half a decade ago when not that many people had a high end mobile phone and Samsung rushed in to fill that void on the Android side of things. The market is saturated, well established, and growth is actually slowing. Huawei is trying to "out Samsung" Samsung in a totally different era than when that strategy first worked. That's part of the reason Windows Mobile is failing against Android and iOS. It isn't enough to do all the things your competitors do well. You need to have an extremely solid and obvious reason why you are a better choice.

Again, I'm not saying it's impossible. I'm saying being well-funded doesn't guarantee a damn thing.

posted on 24 Feb 2016, 05:19

32. S.R.K. (banned) (Posts: 678; Member since: 11 Feb 2016)


There is a good deal of truth in this, especially around the early Galaxy designs. But Samsung is a global leader in screen technology, TVs, batteries, and chip design. So in terms of innovation it is doing a lot right.

posted on 24 Feb 2016, 05:21

33. S.R.K. (banned) (Posts: 678; Member since: 11 Feb 2016)


Paranoid because Samsung may have outgrown the formula that led it to the top of the consumer electronics business. The company owes much of its success to its mastery of what's known in the tech industry as "fast following." By owning each piece of hardware development from start to finish and then ruthlessly designing scores of products that cater to whatever is hip among users, Samsung has been able to catch up to and even surpass the companies it was chasing.

posted on 24 Feb 2016, 05:12 1

30. S.R.K. (banned) (Posts: 678; Member since: 11 Feb 2016)


That's true. What kind of silly name is that; Huawei.

posted on 24 Feb 2016, 10:09

41. Dre1300 (Posts: 46; Member since: 29 Jan 2016)


@ Jason2k13 Not true at all, i own a Huawei Ascend P7 and i live in Las Cruces New Mexico, had this phone for about two years. Apple is the oddest name around, why would a smartphone company name itself 'Apple' to me Huawei sounds better and if there's people that don't know how to pronounce it then stop being lazy and learn to pronounce it.

posted on 24 Feb 2016, 01:46 1

4. hafini_27 (Posts: 876; Member since: 31 Oct 2013)


Ever since Flossy Carter call Huawei phones "Hawaiiiiiiiiii" phones, I giggle everytime I try to pronounce Huawei name.

posted on 24 Feb 2016, 03:29

25. TerryTerius (Posts: 1587; Member since: 10 Apr 2014)


Ha, I forgot about that. Floss is always ruining names lol.

posted on 24 Feb 2016, 02:17

8. Ghost04 (Posts: 333; Member since: 03 May 2014)


I am with Huawei .

posted on 24 Feb 2016, 02:18

9. Martineverest (Posts: 251; Member since: 27 Oct 2015)


He is telling us the fact!..... It will only occur in his dream

posted on 24 Feb 2016, 02:46

17. belovedson (Posts: 986; Member since: 30 Nov 2010)


actually its going to happen and its already happening. considering most smartphones sold are midtier and below. they should be killing it now that they have some momentum with the n6p.

i still dont know why they chose hui when htc should have been given the break or sony.

posted on 24 Feb 2016, 03:23 2

23. TerryTerius (Posts: 1587; Member since: 10 Apr 2014)


Killing what? There's no way they are making more than a few bucks per phone considering the bulk of their devices are being sold for extremely cheap. Unless Huawei is going to open up their own virtual store like Xiaomi did, they aren't really making any money at that price point. For the record, I'm not saying they make bad devices. But they are relying on volume while smartphone sales have been slowing down for the past three years. That's largely why Samsung has stayed out of the low price game as much as they can, recently.

I would be highly curious to see what their ASP's are. I severely doubt it's anywhere near Samsung, let alone Apple.

posted on 24 Feb 2016, 03:04

20. kkmkk (Posts: 471; Member since: 06 May 2013)


i have the huawei g play mini as a backup phone and it is absolutely great for the money
i think what they should focus on is to bring the best tech for the least price they could while keeping a reasonable gain rate >>> and most importantly they should expand into new regions and up their marketing game

posted on 24 Feb 2016, 05:52 1

34. catze86 (Posts: 691; Member since: 07 Dec 2015)


Huawei will be killed by Lenovo, Hisense, Xiaomi and Oppo before reach to the top.

posted on 24 Feb 2016, 07:22

35. yoosufmuneer (Posts: 1498; Member since: 14 Feb 2015)


''Apple sold 225.9 iPhones in 2015 for a 15.9% market share''. Fix it PA

posted on 24 Feb 2016, 07:48

37. iushnt (Posts: 1567; Member since: 06 Feb 2013)


Lol yeah..

posted on 24 Feb 2016, 07:59

38. TheOracle1 (Posts: 143; Member since: 04 May 2015)


An iPhone 6 costs about $250 to make and is sold as a "premium" device for $700+. If Huawei can sell their "premium" phones for $400-500 it doesn't make them mid-range, it makes them great value for money. The same goes for the cheaper Chinese brands. They cut corners on components and build materials but they're certainly not selling at a loss. The Asus Zenfone 2 is a perfect example. Killer performance and specs in mid-range packaging. So yeah, Huawei can definitely shake things up especially with their huge financial clout.

posted on 24 Feb 2016, 08:11

39. MrRadioActive (Posts: 2; Member since: 25 Apr 2012)


HUAWEI....well given my recent experiences with them, their horrible customer service will be their major obstacle in the USA. They outsource their call center to KNOAH.com, where unprofessional, unskilled reps staff the phones and have no power to address and/or resolve issues that present themselves. So while people may flock to buy their phones, when there are problems, customer frustration for lack of attentiveness will surely fill social media and make people aware that this company has a long way to go to become a leader. Samsung and LG have customer service down while HUAWEI lags very far behind. I caution ANYONE wanting to buy equipment from this Chinese company in the USA. I own several HUAWEI smartphones and tablets (I use them internationally only) and I've had nightmarish experiences with this company already. And frankly, their products are not that great. The Huawei watch was well thought out from a design perspective, but it's glitchy and has bugs. The phones are mediocore at best. Likewise on their tablets; they work. I'm done with HUAWEI and will never return. My LG V10 is solid and backed by a company that supports what they sell and provides customer service.

posted on 24 Feb 2016, 08:43

40. TechieXP1969 (Posts: 8890; Member since: 25 Sep 2013)


I doubt it. Samsung sell over 300M phones per year with the world record for selling 430M+ in one year. No OEM, not even Nokia can make such a claim.

As far as outselling Apple? Not hard to do is you make more than one phone.

Even if it ends up being true. So what? What carriers here sell a Huawei brand phone? NO ONE! They sell the Nexus which is not their branded phone. They made the phone for Google.

This company makes one very nice phone that I would love to have. The Mate 8.

posted on 25 Feb 2016, 00:17

52. TheOracle1 (Posts: 143; Member since: 04 May 2015)


"What carriers here sell a Huawei brand phone? NO ONE!"

Oh dear! Another one who thinks America is the world! China has 1.2 billion mobile phones in use, India 1 billion, the US 300 million+. The next highest western country is Germany at about number 10 with 100 million+. Would Huawei like a foothold in the US market? Of course. Do they need it? Hell no! Just like their Networking business didn't require the US market for them to become the largest in the world.

posted on 24 Feb 2016, 13:00 1

43. Arch_Fiend (Posts: 2225; Member since: 03 Oct 2015)


The 6P only sold so well because NEXUS is on the back of it. Unless Huawei can eventually beat Samsung and Apple SOCs then they will never surpass them. So I don't see it ever happening.

posted on 24 Feb 2016, 16:31

44. Dre1300 (Posts: 46; Member since: 29 Jan 2016)


Lol you're an idiot, just because someone is #1 or #2 on the leader board doesn't mean they will be forever, also to say the same if Huawei is #1 someday doesn't mean they will forever, they have a chance though.

posted on 24 Feb 2016, 17:04

45. Arch_Fiend (Posts: 2225; Member since: 03 Oct 2015)


You're the fuciking idiot because I never said that Apple or Sammy can't lose their #1 and #2 spots, When I said "So I don't see it ever happening" That was about Huawei ever doing it because if you didn't notice that's what this article is about.

I'f they lose their spots to anyone, it will be Google when they start producing their own Nexus phones.

posted on 24 Feb 2016, 18:20

46. Dre1300 (Posts: 46; Member since: 29 Jan 2016)


Well you are basically saying its impossible for Huawei to pass up rotten Apple and/or Samsung, nothings impossible, Huawei will pass Apple later this year or by next year sometime and Samsung by 2020 if not earlier. I was close to buying a Nexus 6P but without the SD card suppoet its a no go for me, plus i wait for the Huawei P9 to come out. Quit debating over something that you don't know about, do you work for any of these companies, nope.

posted on 24 Feb 2016, 18:32

47. Arch_Fiend (Posts: 2225; Member since: 03 Oct 2015)


I don't have to work for either company to make prediction. You have your opion and I have mine.

posted on 24 Feb 2016, 18:35

48. Dre1300 (Posts: 46; Member since: 29 Jan 2016)


Well you are basically saying its impossible for Huawei to pass up rotten Apple and/or Samsung, nothings impossible, Huawei will pass Apple later this year or by next year sometime and Samsung by 2020 if not earlier. I was close to buying a Nexus 6P but without the SD card suppoet its a no go for me, plus i wait for the Huawei P9 to come out. Quit debating over something that you don't know about, do you work for any of these companies, nope.

posted on 24 Feb 2016, 18:44

49. Arch_Fiend (Posts: 2225; Member since: 03 Oct 2015)


Unless Huawei can eventually beat Samsung and Apple SOCs then they will never surpass them. That's what I Said in my OP, that doesn't mean impossible just that huawei has a lot of work to do if they are to be top dog oneday.

BTW you said that already.

posted on 24 Feb 2016, 20:00

50. Dre1300 (Posts: 46; Member since: 29 Jan 2016)


Here you said with the word 'Never' never say never, and no i don't listen to JB.

posted on 24 Feb 2016, 20:57

51. Arch_Fiend (Posts: 2225; Member since: 03 Oct 2015)


I did but I also said UNLESS. "Unless Huawei can eventually beat Samsung and Apple SOCs then they will never surpass them" The way I worded it doesn't mean they never will, Just that they want unless they get their SOCs on the same level as Apple and Samsung.

GTFO I'm done bro.

P.S. I don't listen to JB but I listen to some T Swift every now and then lol.

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