Already ahead in 2018 and firmly anchored in the second place of smartphone manufacturers, Huawei again surpassed Apple in the first quarter of 2019 in terms of mobile sales. Despite the controversies related to 5G and its supposed links with the Chinese government, the group is doing well. Huawei even plans to become the world leader in front of Samsung from 2020. But all these sales do not necessarily translate into excessive profits.
Huawei sells more smartphones but margins are much lower
GizChina reports that Apple has earned five times more profits than Huawei in the first quarter of 2019, even though the Cupertino company has had its worst quarter in years. Apple no longer reports its sales figures but would have estimated that passed only 36.4 million iPhone over the period, for a market share that collapsed to about 12% (59 million smartphones sold and 19 % of pdm for Huawei).
The fact that Apple still manages to grow considerably despite this decline in form proves that the US group remains extremely strong. It still manages to release huge margins on its iPhone and its hardware in general thanks to its image and its ecosystem to which many users are addicted. And feeling that the wind is turning on the hardware, the company headed by Tim Cook directs all its efforts on services now. After the success of Apple Music, eyes are now turning to its Apple TV + video service as well as, to a lesser extent, its Apple Arcade video game platform and its Apple News + press kiosk.
