Huawei Smartphone Shipments Surge 49% in Q2: High-End Model Share Soars, Foldable Market Booms

Huawei Smartphone Shipments Surge 49% in Q2: High-End Model Share Soars, Foldable Market BoomsAccording to a recent report by market research firm TechInsights, Huawei's global smartphone shipments in the second quarter of 2024 increased by 49% year-over-year to 11.6 million units, driven by a rebound in the 5G sector and easing supply chain constraints

Huawei Smartphone Shipments Surge 49% in Q2: High-End Model Share Soars, Foldable Market Booms

According to a recent report by market research firm TechInsights, Huawei's global smartphone shipments in the second quarter of 2024 increased by 49% year-over-year to 11.6 million units, driven by a rebound in the 5G sector and easing supply chain constraints. This strong growth was primarily attributed to a significant increase in the share of high-end models and rapid development in the foldable phone market.

The report highlights that Huawei's average selling price (ASP) and wholesale revenue reached record highs due to the substantial growth in the proportion of high-end models (Mate and Pura series combined) in its overall shipments. Notably, China remains Huawei's core market, accounting for 89% of its global smartphone shipments.

Increased Share of High-End Models:

The Pura70 series, launched in the second quarter, was Huawei's first flagship model to feature its self-developed 7nm chip (Kirin 9010) and target the overseas high-end market. Covering a price range from 5,500 yuan to 10,999 yuan, the Pura and Mate series saw a significant year-on-year growth in their share of Huawei's total shipments, indicating Huawei's growing competitiveness in the high-end market.

Faster Growth in the Foldable Market:

The MateX series of horizontally foldable phones and the Pocket series of vertically foldable phones witnessed a 400% and 50% year-on-year increase, respectively. Since the 618 shopping festival this year, Pocket2 has faced intensified market competition as Honor's MagicVFlip joined the fray. This month, Huawei launched a new vertical foldable phone, NovaFlip, which TechInsights suggests will drive the momentum of "clamshell" foldable phones in the Chinese market in the coming months.

Reduced Reliance on Foreign Chip Suppliers:

Huawei's entry-level to mid-range models, such as the Enjoy 70, 70z, and NovaY72, have also transitioned to Kirin processors. While the US government revoked export licenses for 4G chips from US companies like Qualcomm and Intel, this hasn't significantly impacted Huawei's smartphone business as it has significantly reduced its dependence on imported chips.

Apple's Resistance Creates Room for Huawei's Growth:

Huawei's global shipment growth is primarily driven by the Asia-Pacific region, with China playing a key role. In this quarter, Huawei ranked third in the Chinese smartphone market. However, the subpar growth indicates challenges in Huawei's pricing strategy, quality control, and system optimization.

TechInsights believes that various obstacles faced by Apple in China (especially regarding AppleIntelligence) will continue to provide Huawei with growth opportunities in the high-end segment of the domestic market.

Conclusion:

Huawei demonstrated strong performance in the smartphone market in the second quarter, driven by increased share of high-end models, rapid growth in the foldable market, and reduced reliance on foreign chip suppliers. Despite challenges, Huawei's strong brand influence, technological prowess, and dominance in the Chinese market position it well for continued growth in the future.