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Huawei says overall it has raked in 15 per cent higher revenue in the first six months of 2018, steady at levels seen a year ago.
According to IHS and Strategy Analytics, Huawei grabbed more than 15 percent of the global smartphone market over April-June, overtaking Apple's roughly 12 percent and just behind Samsung Electronics Co Ltd's nearly 20 percent share.
Data from Canalys, which estimates industrywide smartphone shipments in China topped 100 million in the second quarter from 91 million in the first, shows Huawei grew its share of the home market by 6 percentage points on year to a record 27 per cent.
The Chinese market is key for Huawei as it has come under fire from the United States, Australia and other nations over security concerns.
Huawei has almost no market share in the United States because of government accusations that it is tied to the Chinese government. This led carriers to end sales agreements with the company, which would have been a crucial move for Huawei's efforts to break into the American market.
In Australia security concerns have mostly been related to Huawei's carrier business, as its bids to build vital 5G infrastructure in the country has led to calls that it be banned from doing so.
Huawei has denied it facilitates spying and has said it is a private company not under Chinese government control and not subject to Chinese security laws overseas.
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Yet despite being shut out of some of the world's most lucrative smartphone markets, it has had exceptional success globally, particularly in its home market of China. The company has sold a high volume of lower-priced handsets there, as well as a line of premium devices with innovative features.
"The Asia-Pacific region posted the biggest growth in the second quarter, rising 107 per cent year over year, while Europe, Middle East and Africa (EMEA) recorded more than 60 percent growth," Schneemann says.
Apple is expected to increase the number of phones it ships significantly in the coming quarter, with the launch of new phones headed into the summer holiday season.
Still, analysts said that Huawei's accomplishment was more than a blip.
"The importance of Huawei overtaking Apple this quarter cannot be overstated," Canalys senior analyst Ben Stanton says in a release.
"It is the first time in seven years that Samsung and Apple have not held the top two positions."
Apple should take the change as a warning, he said, as it still needs to sell phones to drive its growing services business.
Agencies, with Fairfax Media