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Mark Peters : August 15th 2017 - 12:15 CET

Huawei defeats Apple in European smartphone market

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CanalysHuawei overtakes Apple's market position in Europe : Canalys reports breaking news in European smartphone market. Huawei retook the number two spot from Apple in Central and Eastern Europe in Q2 2017. The company shipped 1.8 million smartphones and took 12% market share, beating Apple by fewer than 50,000 mobile handsets. Its strength was in low-to-mid-range products, with the Huawei P10 Lite becoming its best-seller in the European market. Samsung led the smartphone market in Central and Eastern Europe in Q2 2017, shipping 4.9 million mobile phones, a year-on-year increase of 14%. This was due to strong demand for Samsung Galaxy A and J series products, which have been updated this year.
Huawei defeats Apple

Huawei defeats Apple in Europe
"Huawei slipped behind Apple briefly in Q1 2017," said Canalys Analyst Ben Stanton. "Apple did an excellent job of upselling its installed base to the iPhone 7 Plus, whereas Huawei suffered the fallout from its extremely aggressive end to 2016. It built a great deal of channel inventory last year as its sales teams chased a 140-million-unit annual global shipment target. But Huawei is back, growing 11% in Q2 2017. Its inventory has now largely cleared and it is firing on all cylinders."

Xiaomi smartphones
The best handset vendor in the quarter was Xiaomi, which rocketed to fourth place, despite only being active in the region for just over a year. It shipped 1.1 million smartphone devices into Central and Eastern Europe in Q2 to grab a 7% market share.

Xiaomi has found most success with its budget phones, as markets in CEE remain extremely price-sensitive. The Xiaomi Redmi 4A was its best-seller, with more than 350,000 handsets shipped in Q2.

European smartphone market

Replicate the success of Huawei
"Xiaomi wants to replicate Huawei’s rapid rise," said Canalys Senior Analyst Tim Coulling. "But they are very different companies. Huawei has used its networking business to muscle into carrier portfolios. But Xiaomi works differently, relying on a partnership with Polish distributor ABC Data, which has quickly scaled Xiaomi smartphones into Poland’s largest ecommerce platform, Allegro, and major retailers, such as Mediamarkt, Media Expert and Komputronik. To continue its global expansion, it must avoid litigation by gaining permission to use the appropriate patents. With adequate protection in place, it must then recruit distribution partners that can help it establish the Xiaomi brand in an increasingly commoditized market."

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