Huawei accounted for 9.5% of the global smartphone market in 2016
Chinese tech (QQQ) giant Huawei is also the world’s third-largest smartphone manufacturer. According to market research firm IDC, Huawei shipped 139.3 million smartphones in 2016, a significant rise of 30% YoY (year-over-year) compared to shipments of 107.0 million in 2015.
At the end of 2016, Huawei followed Samsung (SSNLF) and Apple (AAPL) in the smartphone market with a share of 9.5% compared to 7.4% in 2015. Huawei’s shipments in 2Q17 totaled 38.5 million units, a rise of 19.6% YoY compared to 32.2 million units in 2Q16.
Huawei grows its presence in Europe
While Apple (AAPL) and Samsung (SSNLF) are trying to penetrate emerging markets such as India (INDA) and China, Huawei has increased its market share in developed markets. Huawei is already a major player in China and according to Canalys, it is the second-largest manufacturer in Spain, Italy, Poland, and Finland.
Huawei is finding it difficult to similarly penetrate the US market. In the US, smartphone companies have deals with telecom carriers such as AT&T (T), Verizon (VZ), Sprint (S), and T-Mobile (TMUS) that influence customer purchases.
Huawei does not have a strong relationship with major carriers in the US, which could be skeptical about conducting business with the Chinese conglomerate. A 2012 House Intelligence Committee report indicated that there could be security and privacy issues surrounding Huawei and ZTE Corp., China’s two largest smartphone manufacturers at the time.