Huawei takes aim at Apple, sets goal of 200 million smartphone shipments in 2018

Huawei takes aim at Apple, sets goal of 200 million smartphone shipments in 2018
Over the course of 2017, Huawei managed to ship a considerable 153 million smartphone units putting it in third place behind Apple and Samsung. But, in an attempt to close in on the former, Huawei is now aiming to ship 200 million units in 2018.

The source of this information is Huawei’s own CEO Yu Chengdong, who revealed the brand’s plans at the recent Honor Play launch event in China and seems pretty optimistic about achieving the figure. After all, between 2010 and 2017, the company has managed to grow its smartphone business by 51 times, suggesting a small increase of under 25% should be attainable during 2018. Despite the CEO’s optimism, though, the results for 2018 as a whole largely depend on the popularity registered during the second quarter of the year. After all, the three-month period is historically one of Huawei’s strongest quarters due to the release of its P-line flagships and is usually indicative of how the company will continue to perform over the rest of the year. Ultimately, though, if Huawei does achieve the feat it would put the brand just behind Apple, who sold 215 million smartphones last year but, with the declining popularity of premium devices, is expected to ship slightly less in 2018.

Overall, Huawei’s end goal is to overtake Samsung but, in light of the difficulties it’s facing when it comes to the US smartphone market, the company has reportedly refocused on Europe and Asia in order to achieve this. See, unlike its South Korean rival which holds a dominant position in the US, Huawei holds the number one spot over in China and has also experienced very strong growth in both India and Europe, thanks, in part, to the increasing presence of the low-cost Honor brand.

At the end of the day, with Q2 2018 shipments still unclear, it's too early to see if Huawei is on track to reach its goal by the end of the year. However, considering the company’s track record in achieving them, it wouldn’t be surprising to see Huawei become the number 2 smartphone manufacturer by the end of Q1 2019.

source: MyDrivers (translated) via: GizmoChina

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22 Comments

1. Tziggy14

Posts: 624; Member since: Sep 02, 2014

No way they're reaching Apple. Not only are they locked out of the US market which was a big blow to their plans, but they're also facing a lot of competition from from Xiaomi as well.

4. joshuaswingle

Posts: 571; Member since: Apr 03, 2018

I personally think they have a chance. They may not be selling devices in the US, but Huawei and Xiaomi are the only major manufacturers posting significant growth right now.

7. toukale

Posts: 624; Member since: Jun 10, 2015

What's the ASP, it's easy to move cheap devices, that's been done to death throughout history in commerce. ASP is key. Apple is moving over 220 million devices with an ASP of $800. Samsung is moving about 320 million with an ASP of $200. That is the difference between those two vendors. While everyone seems focus on market shares, Apple is focus on Profit shares and they have been killing it for the past decade and I don't see that changing.

8. joshuaswingle

Posts: 571; Member since: Apr 03, 2018

I agree with you, but Huawei's goal isn't huge profits. They have made it pretty clear that they simply want to become the number one smartphone manufacturer.

16. iushnt

Posts: 3086; Member since: Feb 06, 2013

Huawei is looking for Market Share so they might very well succeed with healthy profit to run the company.

20. worldpeace

Posts: 3130; Member since: Apr 15, 2016

US is only like 5% of world population, not a big deal.. OPPO, VIVO, and xiaomi doing just fine without entering US market.

2. Papa_Ji

Posts: 839; Member since: Jun 27, 2016

They deserve it...

3. Papa_Ji

Posts: 839; Member since: Jun 27, 2016

They deserve it...

5. toukale

Posts: 624; Member since: Jun 10, 2015

I always wonder why those oem's and some folks holds Apple as the company to beat when Apple obviously not playing the same game. Apple is selling over 220 million iPhone with an average price of around $800 per. That is just ridiculous and no other oem's will come close to that ASP in my lifetime. That is the difference between Apple and everyone else. In order to move that kind of numbers those oem's have to sell their devices at a ridiculously low ASP. I am not impress at Samsung selling 320 million devices with an ASP of just below $200, that tells me the majority of those are the low cost devices. I will be impressed when those oem's can do both like Apple is doing. It's easy to move a ton of cheap devices to gain market shares. That's been done to death in commerce, it's a lot harder to do what Apple have been doing the past decade. It's the reason why folks keep writing about the death of Apple, iOS because no vendor have been able to do what Apple is doing ever in history. One usually have to sacrifice one for the other, not doing both at the same time.

6. joshuaswingle

Posts: 571; Member since: Apr 03, 2018

I don't think Huawei is holding Apple as the company to beat, overtaking them is simply just another milestone. The company's aware that they can't sell flagship smartphones at the same volume as Apple, so the next best thing is to sell cheaper devices at similar volumes to Samsung. But as you pointed out, Apple is playing a completely different game. I doubt they even see Huawei as a competitor at this point.

10. Papa_Ji

Posts: 839; Member since: Jun 27, 2016

Why should i care about ASP ....For users (except iSheep ) only thing matters is features, quality and value for money.

11. toukale

Posts: 624; Member since: Jun 10, 2015

Why should I care for market shares (except ASheep).How does a company market shares help me (user)?

17. iushnt

Posts: 3086; Member since: Feb 06, 2013

Both won’t help you, just enjoy your preference.

9. Farcaster

Posts: 158; Member since: Apr 16, 2018

Not too difficult in a locked market with a third of the global population controlled by a totalitarian government.

12. AfterShock

Posts: 4146; Member since: Nov 02, 2012

My guess is 200 million is conservative after getting all the Western media in a tizzy over their new wares. Kind of expect Xiaomi to climb the ranks later in the year as well, I think the trend is for Budget flagship to be the new big thing. The flocks not getting enough grass to keep being milked year after year at the current rate. Economy of scale will win the next decade

13. vasra

Posts: 126; Member since: Feb 27, 2014

With Bootloader locking, USA's carrier blockage, no 3.5mm headphone jack and Kirin 970 being slower than latest Exynos/Snapdragon... Good luck Huawei... China's market is already saturating and Xiaomi and smaller ones are the ones making percentage gains.

14. midan

Posts: 2756; Member since: Oct 09, 2017

And Samsung is taking the big hit from this "The S9 is expected to hit the lowest sales of any flagship model since the S3 with just 30 million units this year," said Lee Seung-woo at Eugene Investment and Securities"

15. sissy246

Posts: 7087; Member since: Mar 04, 2015

18. midan

Posts: 2756; Member since: Oct 09, 2017

Except it isn't https://m.benzinga.com/article/11864655?utm_referrer=https%3A%2F%2f "Feedback from carrier stores indicates that store shipments of Galaxy S9 devices "declined significantly" amid "bloated inventories," Vinh and Lin said. A large month-over-month decline in sell-through of the S9 was seen in May, which is also contributing to "continued headwinds" for supply chain partners, according to KeyBanc." That was about shipments not sold, stores took way too many units and can't sell them now.

19. sissy246

Posts: 7087; Member since: Mar 04, 2015

LMAO......

21. worldpeace

Posts: 3130; Member since: Apr 15, 2016

Can't you read? it clearly say "best-selling" right in the title, which mean device "sold". You wont find the word "shipment" in sissy's article link.

22. midan

Posts: 2756; Member since: Oct 09, 2017

Clearly it wasn't How already next month inventory can be bloated if the phone is selling well? from good sales it stopped selling completely? Sounds more like carriers and stores ordered too many and can't sell them now, that's why store shipments declined significantly. "Feedback from carrier stores indicates that store shipments of Galaxy S9 devices "declined significantly" amid "bloated inventories," Vinh and Lin said. A large month-over-month decline in sell-through of the S9 was seen in May"

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