Huawei stole the crown from Samsung during the last third quarter. the Company is grateful to higher sales, lower production costs, and Samsung's Note 7 explosion issue . At the mention of smartphone profits, Well the first name that comes to mind is probably Apple. It is no longer news that Apple is the most profitable smartphone maker with 91% profit off all smartphone sales.
Huawei Rose On Top
That's a pretty steep drop for Samsung, which was always consistent the most profitable Android device maker in the past few years. Let's check out how Huawei has taken the crown from Samsung, and whether or not that lead can last.
How Huawei rose to the topHuawei's mobile division posted 74% sales progress last year and accounted for a third of the Huawei's top line. Their smartphone shipments are 25% during the first half of 2016 to 61 million units, smashing the average industry growth rate of 3%. That progress made it the largest smartphone maker in China, tossing off its domestic rivals Oppo, Vivo, and Xiaomi - in that order.
Huawei initially followed Xiaomi's strategies of selling high-end processors and hardware and selling devices online instead of locations. Moreover, Huawei recently started making its devices in India, which decreased its production costs. On the other hand, Chinese consumers started purchasing more expensive premium devices, giving Huawei more freedom to move upmarket with more expensive products like the P9.
What About Samsung?
Well Earlier this year, Samsung combed in cash from the early launch of the Samsung Galaxy S7. Following the explosions and recalling of the Galaxy Note 7, moreover, Samsung lost close to $1 billion. Because of this, we can't expect anything else from Samsung till the launch of another device - probably next year.
Therefore, a new flagship rolls out next year could help Samsung arise lost ground from Huawei and other competitors in China. Most especially to mention among well-off urban customers who preferred status symbol devices from Samsung and Apple. Stay tuned for more updates.