If you asked most people which Android brand was most profitable, the vast majority would say Samsung and understandably so.
In fact the most profitable Android brand at the moment is Huawei with the Chinese brand has taking over from the Korean giants, thanks in part to Samsung’s misfortunes in 2016, but in also because of their own fine products.
A report compiled by firm Strategy Analytics showed that Samsung were severely affected by the Galaxy Note 7 fiasco as they still outperformed all other Android smartphone maker in terms of volume and value of devices shipped in Q3.
The issues with the Note 7 were well publicised and were nothing short of disastrous for the company a resulted in a slump in profits.
Apple continues to hold the monopoly when it comes to market share with a staggering 91%.
The remaining 9% of the market is made up of Huawei, with $200m (a 2.4% share), Chinese smartphone manufacturer Vivo with just under $200m (a 2.2% share), another Chinese smartphone device maker Oppo Electronics with just under $200m (also a 2.2% share), and finally all other Android OEM device makers – including Samsung – who jointly have a 2.2% share.
“Three of the world’s top four most profitable smartphone vendors are currently Chinese.
Huawei, Vivo and Oppo have not only improved their smartphone product line-ups this year, they have also enhanced their operational abilities and kept a tight lid on expanding distribution costs,” said Strategy Analytics director Linda Sui.
One of the interesting points to come out of the study was the popularity of Vivo and Oppo, who up until recently, hardly anyone outside of China had ever heard of them as they previously aimed at the low-cost market for Chinese market aimed at people living in rural areas mainly by taking online orders.
However, the companies decided to move away from online shopping and focus on the large high street retail stores where approximately 75% of smartphone sales take place in China.
Indeed, this approach must have been successful as the iPhone now only makes up 7% of smartphone market in the country.
Huawei are the leading brand in China and have declared their plans to dominate the smartphone market. They said that they “planned to surpass Apple as the second-biggest smartphone player in the world by 2019, before going on to conquer Samsung by 2021.”