While Apple remains the smartphone industry leader in terms of profitability with 91 percent global market share in the third quarter, in a dramatic turn of events, Chinese phone manufacturer Huawei has surpassed Samsung as the second most profitable smartphone brand globally in Q3 2016.
The global smartphone market is surely a competitive space and Huawei seems to have risen above its biggest Asian competitor Samsung.
However, for Samsung, the defective Galaxy Note 7 might have turned out to be the biggest nightmare for the company. A global recall program and trust issues with Samsung devices might have caused the company's sales to come down. In the end, it has affected Samsung's title of the most glorified Android brand.
As such when Samsung was busy fixing its blunder in Galaxy Note 7, Huawei has used the opportunity to consistently make sales and now controls 2.4% of the global smartphone operating profit share in the third quarter of 2016.
Vivo and Oppo Electronics have also managed to gain 2.2% market share each in the crowded Android field. On the other hand, Samsung's name was grouped with the "Others" category in the list, the collective sales of which cornered 2.2 percent of global smartphone profits in Q3.
Samsung's misfortune with the faulty Galaxy Note 7 units and the eventual halt of the device in the production line has likely detached it from its firm position.
With all that happened and disclosures made, Strategy Analytics Executive Director, Neil Mawston stated that Huawei became the world's most profitable Android smartphone vendor for the first time.
He further expects Huawei to maintain steady profitability into the first half of 2017, as the company's smartphone shipments will be growing and that it was also doing a good job of controlling [operating] costs.
While Samsung may have lost this battle, but Huawei's gains may be short-lived. While the device maker has benefited from sales and growth through its efficient strategies, it seems the results haven't hurt Samsung's overall brand so far.
The privately-held Huawei still aims to be the second biggest player in the smartphone arena behind Apple within two years. However, going forward, Samsung will be bouncing back in the coming months and year. It might launch a new flagship product.
Samsung will look to reaffirm its place behind Apple and claim its title as the most glorified android brand.