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

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



1. HonestRealist

Posts: 196; Member since: Jan 25, 2016

Goooooood luck Whoarewe

27. Bm888

Posts: 517; Member since: Jul 06, 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

28. S.R.K.

Posts: 678; Member since: Feb 11, 2016

29. S.R.K.

Posts: 678; Member since: Feb 11, 2016


2. Jason2k13

Posts: 1469; Member since: Mar 28, 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

3. Jason2k13

Posts: 1469; Member since: Mar 28, 2013

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

6. NoToFanboys

Posts: 3231; Member since: Oct 03, 2015

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

10. MrElectrifyer

Posts: 3960; Member since: Oct 21, 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

19. NoToFanboys

Posts: 3231; Member since: Oct 03, 2015

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

16. Jason2k13

Posts: 1469; Member since: Mar 28, 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.

18. NoToFanboys

Posts: 3231; Member since: Oct 03, 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"

21. Jason2k13

Posts: 1469; Member since: Mar 28, 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.

31. S.R.K.

Posts: 678; Member since: Feb 11, 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.

42. MSi_GS70 unregistered

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

7. Nibbler1

Posts: 40; Member since: Apr 03, 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 :)

13. Jason2k13

Posts: 1469; Member since: Mar 28, 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.

14. belovedson

Posts: 1061; Member since: Nov 30, 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

5. Dr.Phil

Posts: 2451; Member since: Feb 14, 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.

11. pendragon0202

Posts: 164; Member since: Feb 23, 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.

15. belovedson

Posts: 1061; Member since: Nov 30, 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

12. Dr.SamX

Posts: 244; Member since: Jan 19, 2015

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

22. Kumar123 unregistered

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.

24. TerryTerius unregistered

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.

26. Kumar123 unregistered

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.

36. TerryTerius unregistered

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.

32. S.R.K.

Posts: 678; Member since: Feb 11, 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.

33. S.R.K.

Posts: 678; Member since: Feb 11, 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.

30. S.R.K.

Posts: 678; Member since: Feb 11, 2016

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

41. Dre1300

Posts: 60; Member since: Jan 29, 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.

4. hafini_27

Posts: 951; Member since: Oct 31, 2013

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

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.