Samsung’s defective Galaxy Note 7 has turned out to be the biggest nightmare for the company, and that nightmare seems too have stretched even more. That big setback for once Android’s most glorified brand has led to Chinese multinational telecommunications Equipment Company Huawei’s success in making it, the most profitable Android smartphone manufacturer in the world.
When Samsung was busy fixing its most unexpected blunder in Galaxy Note 7, Huawei used the opportunity and managed to control 2.4% of the global smart phone operating profit share ($200 million) in the third quarter of 2016. On the other hand other Chinese companies Vivo and Oppo Electronics gained to 2.2% market share each in the crowded Android field, reported the South China Morning Post.
Strategy Analytics executive director Neil Mawston said in an interview,
Huawei also became the world’s most profitable Android smartphone vendor for the first time, we expect Huawei to maintain steady profitability into the first half of 2017, because its smartphone shipments are growing and it is doing a good job of controlling operating costs.
Though Huawei has benefited from savings and revenue growth through its decision to start manufacturing in India, there are chances that Huawei’s gains may be short lived and Samsung picks up again to take back its position of the most profitable Android smart phone manufacturer in the world. It is true that Samsung was dropped to ninth position in the third quarter of 2016 due to its defected line of Galaxy Note 7s, but the reputation of the overall brand has been intact, according to a Reuters/Ipsos opinion survey from earlier this month.
All the company has to do to win over its loyalists is launch a new flagship product in 2017.
Huawei however is upbeat from these latest findings and has bigger dreams. It aims to be the second biggest player in the smart phone arena behind Apple within two years, says the company’s consumer business CEO Richard Yu Chengdong.
FYI, Apple continues to remain the most profitable of all smart phone makers with a staggering 91% operating profit market share. As if thats news, but still.