Huawei's smartphones shipments rise on international sales

Huawei has ambitions to become a leading global smartphone vendor

Huawei Technologies shipped 62 percent more smartphones in the first half of 2014 than the same period last year, with shipments to some countries outside its home market of China doubling or even tripling.

It shipped smartphone 34.3 million units, boosted by sales of flagship phones the Ascend Mate 2 and the Ascend P7, it said on Tuesday. In the second quarter alone it shipped 20.6 million units, an 85 percent year-over-year increase.

Much of that growth is coming from emerging markets in the Middle East, Africa and Latin America, where its smartphone shipments are doubling or even tripling compared to the previous year, the company added.

Other Chinese vendors are also reporting booming smartphone sales, but Huawei ships a higher proportion of its production to foreign markets, said Melissa Chau, an analyst with research firm IDC.

"It has the most number of shipments outside of China, roughly 40 percent," she estimated. "If you look at Lenovo, ZTE, or Xiaomi, they are nowhere near that."

In this year's second quarter, Huawei will hold on to its ranking as the world's third-largest smartphone vendor, behind leader Samsung Electronics and second place Apple, Chau added.

In foreign markets, Huawei is driving growth by selling low-end models, while flagship products such as the Ascend P7 find most of their buyers in mainland China, Chau said.

Huawei has ambitions to rival Apple and Samsung in the smartphone arena, so is spending more on marketing and raising brand awareness. But its market share in this year's first quarter was only 4.7 percent, still far away from second place Apple, which had a 15.2 percent share.

"They are making some progress, but they are still not anywhere near being a super top-tier player," Chau said. Android smartphones are also becoming commoditized, which risks dampening Huawei's attempts to stand out from the rest of the competition, she added.

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Michael Kan

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