Chinese tech giant Huawei regains number one position in China's smartphone market, with Apple slipping down to fifth place.
In the bustling world of technology, Huawei has made a significant comeback in China's smartphone market, marking a 70% increase in shipments compared to the previous year. This resurgence has propelled the tech giant back to the top spot in the first quarter of 2024.
The growth can be attributed to the success of Huawei's domestic market, where the former budget smartphone brand, Honor, also logged a 9% growth. This growth is a testament to Huawei's resilience and innovation in the face of challenges.
Huawei's strategic move to develop its own operating system, HarmonyOS, has been instrumental in this comeback. With Google's Android and Google Mobile Services out of reach, Huawei took the initiative to create a system of its own. Today, HarmonyOS is installed on more than 800 million devices, a remarkable achievement in the tech industry.
The success of HarmonyOS is crucial for Huawei's overseas expansion plans. The company aims to make HarmonyOS a third major mobile operating system in the world, standing alongside Android and Apple's iOS. To achieve this, Huawei plans to test its smartphone business expansion in the Indian market, with potential moves into other markets in 2024.
However, Huawei's expansion depends on HarmonyOS's global competitiveness, which is contingent upon consistent domestic performances over time. The success of Huawei's latest flagship smartphones, the revamped Pura line, is a promising sign. The Mate 60 Pro, Huawei's first 5G-capable smartphone using its own chips, was released in August 2023, and the Pura line went on sale in the first quarter of 2024.
China, the world's biggest smartphone market, is highly competitive, with razor-thin gaps between the top six vendors. While Huawei has regained its position, other players like Oppo and Vivo have seen a decrease in shipments, with Oppo's and Vivo’s shipments decreasing by 14% and 9% respectively.
Apple, another significant player in the market, has seen a 25% decrease in shipments, ranking fifth in China's smartphone market. Despite this, Apple continues to generate about 17% of its October-December net sales in the greater China region.
The success of Huawei's smartphone business is crucial not only for the company's growth but also for the success of HarmonyOS. Consistent, strong sales volumes can build up a sufficient installed base to become an attractive platform for developers on HarmonyOS, potentially making it a formidable competitor in the global market.
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