Reflected Benefits

China Huawei posted the highest operating profits from selling Android smartphones in Q3, surpassing Korea's Samsung Electronics.
China Huawei posted the highest operating profits from selling Android smartphones in Q3, surpassing Korea's Samsung Electronics.

 

China Huawei posted the highest operating profits from selling Android smartphones in the third quarter in the world for the first time, surpassing Korea's Samsung Electronics.

Samsung, which had been next to Apple in terms of profits in the entire smartphone market including the iPhone, was relegated by other Chinese companies such as Vivo and Oppo as well as Huawei due to a botched recall of the Galaxy Note 7 due to a defect to erupt into flames.

According to a report on global smartphone operating profit shares in the third quarter of 2016 released by market research firm Strategy Analytics (SA), Apple accounted for 91.0 percent of operating profits in the global smartphone market with US$ 8.5 billion. Apple’s share was a record high.

Huawei came in second with US$200 million, accounting for 2.4%. Vivo and Oppo followed Huawei with a 2.2% share, respectively. The combined share of these three Chinese smartphones stood at 6.8%. Other companies, excluding Apple and China's top three, accounted for a mere 2.2% of the total.

“An efficient supply chain, sleek and sporty products and effective marketing significantly boosted Huawei’s profitability,” said SA’s Neal Moston about Huawei came next to Samsung Electronics and Apple in terms of smartphone sales. Bibo and Oppo made a lot of profits with a price strategy and increases in sales in the Asian market, he explained.

It was worth paying attention to the fact in the SA report that Samsung failed to make the list of smartphone manufacturers which made considerable amounts of profits, Fortune said on November 23. The South China Morning Post quoted SA’s Moston as saying that Samsung slipped to 9th in operating profit in the third quarter.

However, Moston forecast that after Samsung will make a comeback as the company next to Apple in terms of profits after solving the Galaxy Note 7 incident and releasing a new flagship model.

 

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