Beirut, February 21st, 2017: According to data released by leading analyst firms Strategy Analytics and Counterpoints Research, Huawei Consumer Business Group (CBG) became the third largest smartphone manufacturer by market share, commanding 10% of the total global market. Meanwhile，total worldwide smartphone shipments grew by 2.3% year-on-year in 2016, totaling 1.47 billion units. The Chinese market contributed a large part of this total figure, with 467 million mobile phones shipped for the year. Of the top five vendors, Samsung, Apple, Huawei, OPPO, and vivo, the three Chinese brands together account for almost 20% of the global market share. In total, Huawei shipped 139.3 million units in 2016, up 30.2% on 2015.
Despite the softening of the global smartphone market, Huawei’s annual growth in shipments shows strong momentum and continues to perform above the industry average. Shipments grew from 75 million in 2014 to 108 million in 2015 and approximately140 million in 2016. This industry-defying growth has consolidated its position as the number three global vendor.
The spring and autumn release of the two flagship smartphones P9 and Mate9 – both equipped with industry-leading photographic functionality – secured strong results for Huawei in the fourth quarter of 2016. “Huawei was a rising star in December 2016, an important achievement for Chinese companies,” said Tina Lu, Senior Analyst at Counterpoint Research.
Huawei has modified its channel strategy, growing the total number of its offline service stores to more than 460, across 45 countries around the world. The company launched its “1,000-county plan” in China, aiming to set up shops in 1,000 counties across the country. Huawei has also established long-term and stable partnerships with thousands of distributors and retailers all over the world. The global public channel as a share of revenue increased to 71% in 2016, up 13 percentage points from 2015. The number of retailers offering Huawei devices across the world also increased to more than 70,000.
Huawei consolidated its position as one of the world’s three largest smartphone vendors thanks to distinct domestic and overseas strategies that have solidified its advantages in some regions, while opening new markets through its continuous innovation and efficient operations. “Huawei maintained third position with a record 10 percent global smartphone market share in Q4 2016, the first time the company has ever reached double figures. It was an impressive performance,” said Woody Oh, Director at Strategy Analytics. “Huawei’s overseas performance in markets like Western Europe is accelerating due to improved smartphone designs, more sophisticated marketing, and deeper retail distribution.”
Huawei has established its global brand through strategic marketing, infusing it with greater personality and moving away from the image of a pure technology brand. Through endorsements by global and regional stars, as well as sports sponsorships and product placement, Huawei’s brand image and reputation have become more recognized by an ever-increasing audience.