HUAWEI BEATS APPLE

Chinese leading tech company Huawei has moved up to a second place in the global smartphone sales share

Huawei Technologies overtook Apple to become the world's number two smartphone maker in the second quarter this year, registering an on-year growth of 41%

It was the first time that Apple had not been the number one or number two smartphone company in terms of market share

The new number two by the smartphone-verkäufen. Huawei overholt Apple. Wow. So I wanted to talk a little bit about some information that came out recently

C-A-N-A-L-Y-S dot com. These guys, they do these reports on the smartphone industry, of which I am, of course, very invested

Make so many videos on smartphones. Pay attention to the marketplace. And so I like to know exactly what's going on, where the marketplace is going, because that matters to you

It affects you. It impacts you. It impacts what ends up in your pocket. So Huawei overtakes Apple to become number two smartphone vendor in Q2 2018

I know you can be like, there was no new iPhone. You're tracking the wrong period

But here's why this is significant. This is the first time that Apple and Samsung have not been in the top two spots of smartphone

sales in any quarter in seven years. Since the second quarter of 2010

Seven years is a very long time. We talking about the smartphone business as a whole now when we talking about seven years Apple and Samsung they have flip flopped in those top two spots You can kind of track it yourself Very infrequently Apple has beat Samsung in terms of market share but overall either one or two for seven straight years And

Huawei has ended that. Not only did they end that with 54 million units shipped to Apple's 41 million

units, but they did sell with 41% year on year growth, skyrocketing in terms of volume. And a lot

of that has to do with the Honor brand, which is actually responsible for two-thirds of this growth

pointing in this direction of budget devices being the future of devices in general when it comes to

volume. Now, the reason this is important is because it inserts an individual into a particular

ecosystem. If your first device is an inexpensive Honor device and you get familiar with Android

you buy all your apps on there, you use those messengers, WhatsApp, and so on, it becomes harder

for Apple to eventually get their teeth into you, their teeth into you

for you to get your teeth into their Apple. Some people will say, yes

but Apple is out there realizing the majority of the profits in the smartphone business

Sure, you're correct, they are. In fact, Huawei has stepped away from a profitability focus

and instead they're focusing solely on this rapid growth. Let's get people in the door

give away the free hotcakes, and maybe they'll stick around and buy the bacon and the sausages

You see what I doing here Now obviously their devices are not free but they have so many options at the lower end And for those of you on Twitter and in other places that want to tell me that Apple doesn care because they sitting there counting their trillion bucks which they are

but the reason they need to be concerned is because this is the long game, all right

This is not about your lifetime. This is about forever in the smartphone business, in the technology business

You need to get people in the door and continue to do so. In that same quarter, Apple's year-on-year growth was only 1%

Huawei's 41%. That's a lot of new customers. And they did that with no US presence

Yes, clearly Huawei's overtaken them. Huawei's not allowed to sell phones in North America

So all of those sales are coming clearly from elsewhere. You know, you guys have probably heard about the complications

selling product in the United States for Huawei Honor and so on

They did this everywhere else. Number one smartphone manufacturer in China. They account for 27% of smartphone purchases in China

Outside of China, the P20 and P20 Pro, more than doubled the shipments of the P10 and P10 Plus

So people obviously like this device. Now, what does this all mean for Apple

I know lots of you are iPhone users out there and you're sitting there thinking, Lou, am I getting an iPhone pretty soon

What about these new models? How is Apple going to play this

Promise you Apple cares. And the reason I know they care is because they are finally looking

at a more budget version out of the gate. Now, don't tell me that in the past

when they let the old model hang around that was their budget version That a scam We all know it Look at the MacBook Air right now That not a legitimate purchase in this day and age This time around that different We seen the leaks We seen the rumors shifting certain components LCD displays

cutting costs because they're looking at this report just like I am and just like you are

You need to get people into your ecosystem. You need to get people using your services

Now, I should talk about Samsung real quick because they're also on this chart. They've

been number one for a very long time from the wide variety of smartphone products that they make

down 8%. Their stuff is not selling as great as it used to, but that's still 73 million units

They're moving a lot of units, but they are also taking a close look at this. I'm sure wondering

where they need to be from a product offering perspective to keep moving in the same direction

that Huawei is moving in right now. Now, one more thing to reiterate here, Huawei is not currently

selling in the United States for various reasons. If that changes, you can expect to see an even

bigger number here in terms of growth. United States, very big smartphone market. Talking about

customers opening the front door, hanging out a little bit. They're looking around. I can't tell

you what the next device is, but they're getting more comfortable with the idea of brands that

aren't called Samsung and aren't called Apple. And now you know that. Would you give Huawei a shot

P20, P20 Pro, is that in your future? Let me know. Maybe you have concerns

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