Industry experts initially expected Chinese firm Huawei Technologies to be in the running to overtake Korean giant Samsung Electronics as the world's largest smartphone seller. However, that was apparently not the case as Samsung's oldest rival, Apple, has now managed to surge to the top positions, effectively threatening Samsung's reign.
According to a report published by Boston-based market research firm Strategy Analytics, Apple had managed to significantly increase its smartphone shipments in the last quarter of 2019. The report estimated that Apple might have shipped a total of 70.7 million units during the fourth quarter of 2019. This is slightly higher than the 68.8 million units Samsung had shipped over the same period.
The report somewhat contradicts a research paper published by HIS Markit, which estimated that Samsung had shipped 70.7 million units and Apple only had 67.7 million units shipped. Both reports do however agree that the gap in smartphone sales between the two companies is rapidly decreasing.
It has to be noted that research firms can only provide an estimate for Apple's shipments as the firm had effectively stopped providing official figures last year. On the other hand, Samsung still publishes its official numbers, including shipments of smartphones and feature phones.
Meanwhile, both reports have pegged Huawei's smartphone shipments for the last quarter at around 56 million units. The figure is still respectable given the company's struggles with sanctions imposed by the United States among other operational challenges.
Just this week, Apple reported record figures for the month of December. The news managed to push its stock prices to record highs. Analysts have pointed out that Apple's recovery is likely primarily driven by the success of its new iPhone 11 family of smartphones. Its better-than-expected performance had also been bolstered by its strong growth in its wearables and services units.
Apple has reportedly asked its global suppliers to increase production to meet higher-than-expected demand. The company is already set to release new lower-cost iPhone models in March, a move that may further drive its sales numbers upwards.
For the most part, Samsung still managed to hold on to its position and reported improved operating profits from its smartphone business. Unfortunately, the company's memory chip business, which is its most profitable unit, has lagged due to the overall slump in the chip industry.
Samsung has announced plans to refresh its flagship devices along with releasing more-innovative models such as new foldable devices. The Korean giant is also betting big on 5G network technology, with plans to release additional 5G-capable models throughout the year.
