Samsung cedes smartphone top spot to Huawei again in May

The Korean first lost its No.1 spot in April

2020-06-29     Jong Jun Lee
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Samsung Electronics have again ceded its top spot in global smartphones sales to Huawei in the month of May, according to market research firm CounterPoint.

The Chinese company controlled 19.7% market share while the South Korean tech giant was just behind with 19.6%. A total of 81.97 million smartphones were sold in May.

Samsung first lost its top spot to Huawei in April. The Galaxy maker had a 19.1% market share that month while its Chinese rival controlled 21.4%, taking the top spot for the first time. A total of 69.37 million smartphones were sold in April.

Samsung’s closing of the gap in May was attributed to the sales rise in the US. The world’s largest economy saw smartphone sales rise 56% in May from the previous month. 8.4 million smartphones were sold in the US in May compared to the 5.4 million in April. Samsung controlled 33% market share there in May, behind Apple’s 41%.

The South Korean tech giant is likely benefiting from US sanctions against Huawei that limits its use of Google’s mobile services. The Chinese companies will likely further feel the brunt of the sanctions later this year as its chip-making subsidiary HiSilicon won’t be able to use TSMC as a contract chip maker.

Huawei’s fate after September remains uncertain due to the sanctions and the resultant problem it faces in securing semiconductors, CounterPoint noted. Samsung, meanwhile, is strengthening its mid-tier Galaxy A line-up and is expecting to launch its Galaxy Note 20 series, Galaxy Fold 2 and S20 Fan Edition later this year that will pique consumer interests.

A person familiar with the matter said it was a strong possibility for Samsung to lose its top spot to Huawei completely this year if it weren't for the US sanctions against the Chinese company.