Chinese phone maker Huawei Technologies Co. Ltd. (NASDAQ: HUAWEI) is on a freight train to success. On November 24th, the company became the most profitable Android brand, just below Apple Inc. (NASDAQ:AAPL) as the top smartphone seller.
Samsung Electronics Co. (NASDAQ: SNFL) had been next to Apple over the last few years, but the company has lost its comfortable position against other Chinese companies like Huawei 7, because of the recall of the exploding Galaxy Note 7.
Huawei also overthrew Xiaomi Inc. as China’s number one phone vendor. Vivo Communication Technology Co. Ltd. and Oppo Electronics Crop follow in line, according to a report by market research firm Strategy Analytics.
Apple, the supreme king of smartphones
Apple remains by the top smartphone maker in the world. By far. The company scored $8.5 billion massive profits during the last quarter, which amounts 91 share of the market.
In perspective, the smartphone market was worth $9.4 billion during the third quarter of 2016, so it means Apple has a firm grip on its loyal customers. However, 2015’s third quarter saw $13.5 billion earnings on smartphone sells.
Huawei is second with $200 million, but it only accounts for 2.4% share of the global smartphone operating profits, according to the report.
Vivo and Oppo have both a 2.2% share, the combined stake of the three Chinese smartphone manufacturers equals 6.8%. The rest of the companies account more a measly 2.2% of the total.
Huawei is rising while Samsung is falling back
Strategy Analytics say Huawei’s growth is because of their sleek smartphone lineup and improvements on distribution and operational cost. The Huawei Mate 8 is an excellent example of what the Chinese company can deliver.
The research firm also noted that Apple’s ability to maximize pricing while minimizing cost is “impressive,” and added that Chinese brands are very far behind from Apple’s commanding position in the market.
It is worth noting that Samsung failed to make it into the list of top smartphone vendors in the world. The South Chine Morning Post already said that the Korean vendor slipped into the 9th position in operating profit during the third quarter of the year.
However, Neal Moston from Strategy Analytics assures Samsung will make a comeback once it passes the Galaxy Note 7 crisis. The expert says the company will come back next to Apple when it releases its next flagship model.
Source: Strategy Analytics