OPPO 230Who is BBK? The world's second largest smartphone vendor by number sold, BBK, was a name I didn't know until recently. They own Oppo, Vivo, and OnePlus. These giant brands are huge in Asia and are becoming very visible in Europe as well. There's a good article on the history of these companies at PhoneRadar.

BBK operates as General Motors once did: Chevrolet, Cadillac, and Buick were run independently and competed with very different go-to-market strategies. Oppo and Vivo have large, independent research divisions as well. (Charts below.)

Headlines around the world today blasted, "Huawei overtakes Apple to become world's second-largest smartphone vendor."  Counterpoint believes Huawei shipped 54.2M phones in Q2. Huawei still has a way to go to pass Samsung, with 71.6M. Huawei emulates Henry Ford, who built steel mills and a rubber plantation to supply his automobiles. Huawei's HiSilicon is the largest chip company in China, going neck-and-neck with Qualcomm & Samsung.

Oppo had 29.6M and Vivo 26M, totaling 55.6M. Add OnePlus and BBK is well ahead although Huawei is growing more quickly.

Ranking by sales dollars and especially profits, Apple and Samsung are far above.

From the press releases of Counterpoint and Strategy Analytics, similar estimates

global smartphone Q2 2018

 

 

Strategy Analytics: Huawei Overtakes Apple to Become World's Second Largest Smartphone Vendor in Q2 2018

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July 31, 2018
 
 
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Huawei overtakes Apple iPhone to become world's 2nd largest smartphone maker for first time ever.

 

BOSTON--(BUSINESS WIRE)--According to the latest research from Strategy Analytics, global smartphone shipments fell 3 percent annually to reach 350 million units in Q2 2018. Samsung maintained first position with 20 percent global smartphone marketshare, while Huawei overtook Apple for the first time ever to become the world’s second largest smartphone vendor.

Linda Sui, Director at Strategy Analytics, said, “Global smartphone shipments fell 3 percent annually from 360.4 million units in Q2 2017 to 350.4 million in Q2 2018. The global smartphone market has slowed down this year, due to longer replacement rates, diminishing carrier subsidies, and a lack of new hardware design innovation.”

Neil Mawston, Executive Director at Strategy Analytics, added, “Samsung shipped 71.5 million smartphones worldwide in Q2 2018, tumbling 10 percent annually from 79.5 million units in Q2 2017. This was Samsung’s worst quarterly performance since the third quarter of 2016. Samsung is being squeezed by Chinese rivals, like Xiaomi and Huawei, across major Asian markets such as China and India. Huawei soared 41 percent annually from 38.4 million smartphones shipped worldwide during Q2 2017 to a record 54.2 million units in Q2 2018. Huawei overtook Apple for the first time ever to become the world’s second largest smartphone vendor. Huawei captured 15 percent global smartphone marketshare in the quarter. Huawei’s midrange Android models, such as Nova 2S and Nova 3e, are proving wildly popular across Asia and Europe.”

Woody Oh, Director at Strategy Analytics, added, “Apple grew an above-average 1 percent annually and shipped 41.3 million iPhones for 12 percent smartphone marketshare worldwide in Q2 2018. Apple continues to grow in smartphones, but at a much slower pace than key Chinese rivals such as Huawei and Xiaomi. Apple will need to innovate new designs for the iPhone if it wants to grow future volumes, perhaps by adding new features such as dual SIM cards or foldable screens.”

Linda Sui, Director at Strategy Analytics, added, “Xiaomi shipped an impressive 32.0 million smartphones and held fourth position with a record 9 percent global marketshare in Q2 2018, lifting from 6 percent share a year ago. Xiaomi’s growth increased 38 percent annually in the quarter, but this was down from the 58 percent rate it hit a year ago. Xiaomi is now slowing, due to fresh competition from Huawei in its key markets of India and China. OPPO held fifth place, capturing 9 percent global smartphone marketshare in Q2 2018, up slightly from 8 percent a year ago. OPPO has been hit hard by Xiaomi’s rapid expansion in the past year, but OPPO is finally stabilizing and fighting back with keener pricing and enhanced new models such as the R15 with dual SIM cards.”

         

Exhibit 1: Global Smartphone Vendor Shipments and Marketshare in Q2 2018 1

         
Global Smartphone Vendor Shipments (Millions of Units)   Q2 '17   Q2 '18
Samsung   79.5   71.5
Huawei   38.4   54.2
Apple   41.0   41.3
Xiaomi   23.2   32.0
OPPO   29.5   30.2
Others   148.8   121.2
Total   360.4   350.4
         
Global Smartphone Vendor Marketshare (%)   Q2 '17   Q2 '18
Samsung   22.1%   20.4%
Huawei   10.7%   15.5%
Apple   11.4%   11.8%
Xiaomi   6.4%   9.1%
OPPO   8.2%   8.6%
Others   41.3%   34.6%
Total   100.0%   100.0%
         
Total Growth: Year-over-Year (%)   5.5%   -2.8%
         
Source: Strategy Analytics        
         

The full report, Huawei Overtakes Apple as Global Smartphone Shipments Hit 350 Million in Q2 2018, is published by the Strategy Analytics Wireless Smartphone Strategies (WSS) service, details of which can be found here: https://tinyurl.com/y75uhw62 .

1 Numbers are rounded

dave ask

Newsfeed

Vivo is selling new the iQOO 5G premium quality phone for US$536.

Lei Jun Xiaomi "5G to have explosive growth starting from Q2 2020"5G to have explosive growth starting from Q2 2020" I say sooner

Verizon CEO Ronan Dunne: >1/2 VZ 5G "will approximate to a good 4G service" Midband in "low hundreds" Mbps

CFO John Stephens says AT&T is going to cut capex soon.

Bharti in India has lost 45M customers who did not want to pay the minimum USS2/month. It's shutting down 3G to free some spectrum for 4G. It is cutting capex, dangerous when the 12 gigabytes/month of use continues to rise.

Huawei in 16 days sold 1,000,000 5G Mate 20s.  

China has over 50,000 upgraded base stations and may have more than 200,000 by yearend 2019. The growth is astonishing and about to accelerate. China will have more 5G than North America and Europe combined for several years.

5G phone prices are down to $580 in China from Oppo. Headed under $300 in 2020 and driving demand.

No one believed me when I wrote in May, 90% of Huawei U.S. purchases can be rapidly replaced and that Huawei would survive and thrive. Financial results are in, with 23% growth and increased phone sales. It is spending $17B on research in 2019, up > 10%. 

5G phones spotted from Sharp and Sony

NTT DOCOMO will begin "pre-commercial service Sept 20 with over 100 live bases. Officially, the commercial start is 2020.

 More newsfeed

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Welcome  1,800,000 Koreans bought 5G in the first four months. The demand is there, and most of the technology works. Meanwhile, the hype is unreal. Time for reporting closer to the truth.

The estimates you hear about 5G costs are wildly exaggerated. Verizon is building the most advanced wireless network while reducing capex. Deutsche Telekom and Orange/France Telecom also confirm they won't raise capex.

Massive MIMO in either 4G or "5G" can increase capacity 3X to 7X, including putting 2.3 GHz to 4.2 GHz to use. Carrier Aggregation, 256 QAM, and other tools double and triple that. Verizon sees cost/bit dropping 40% per year.

Cisco & others see traffic growth slowing to 30%/year or less.  I infer overcapacity almost everywhere.  

Believe it or not, 80+% of 5G (mid-band) for several years will be slower than good 4G, which is more developed.