Market share comparison
Apple and Huawei are undoubtedly the two giants of the current global smartphone market. According to the latest data from market research firm IDC, in the fourth quarter of 2023, Apple ranked second in the world with a market share of 23.9%, behind Samsung. Huawei, on the other hand, ranked fifth with an 18.5% market share. This data reflects the differentiated positioning of the two companies in different market segments.
Apple has long dominated the high-end smartphone market with its excellent product design, high-quality user experience, and strong brand influence. Its flagship iPhone series products tend to cost more than $1,000, attracting a large number of consumers who are looking for a higher level of quality and experience. Apple has also tightened users to its products and services through its complete ecosystem, forming an extremely high user stickiness. This gives Apple an unshakable dominant position in the high-end market.
Huawei is focusing on the low-end market. With excellent price/performance ratio, innovative technology, and localized marketing strategies, Huawei has made great strides in China and emerging markets. Although its flagship Mate series and P series are positioned at the high-end, they are usually priced lower than Apple's peers, attracting a large number of more price-sensitive consumers. Huawei has also launched a number of 1,000-yuan models, further expanding its influence in the low-end market.
Comparison of innovation capabilities
Innovation is key for smartphone manufacturers to stay competitive. In this field, both Apple and Huawei have made breakthroughs to varying degrees.
Apple has long been regarded as a leader in smartphone innovation. From the initial launch of multi-touch, to the later Face ID, facial recognition, waterproof and dustproof and other functions, Apple has continued to innovate in terms of interaction, security, and user experience. Its latest Dynamic Island screen design cleverly integrates the cut-out area into the operating system, bringing users a new interactive experience.
Huawei, on the other hand, has made breakthroughs and innovations in 5G communications, artificial intelligence, and cameras. As early as 2019, Huawei launched the Mate 30 series of mobile phones that support 5G, becoming one of the earliest manufacturers to deploy the 5G era. In terms of artificial intelligence, Huawei has developed an industry-leading da Vinci architecture NPU, which has greatly improved the AI performance of mobile phones. Huawei's mobile phone cameras have always maintained the top level in the industry, and its shooting functions such as super night scene and super zoom have been highly praised.
It should be noted that Apple's innovations tend to focus more on the integrity of the user experience. It not only innovates in hardware, but also pays more attention to the deep integration with software and services to bring users a seamless experience. Huawei's innovation, on the other hand, is more focused on a single function or technology, and the integration with the overall ecosystem is slightly insufficient.
Ecosystem comparison
Ecosystem building is a top priority for contemporary tech giants, and it is another battleground for Apple and Huawei to compete.
Apple is undoubtedly leading the way in this area. Its iOS operating system, Mac computers, iPad tablets, Apple Watch smart watches, AirPods wireless headphones and other products are seamlessly integrated, plus iCloud cloud service, Apple Music music service, Apple TV+ video service, etc., to build a very complete ecosystem. Users can enjoy an all-in-one experience like never before.
Apple is also adding third-party developers and service providers to its ecosystem through the App Store, Apple Pay, and more. This further enhances user stickiness and also generates significant revenue for Apple. It is estimated that Apple's services business revenue will reach more than $80 billion in 2023.
Huawei's ecosystem is lagging behind. Although Huawei has also launched its own HarmonyOS operating system, tablets, wearables and other products, it is still monotonous compared to Apple. To make matters worse, Huawei was unable to pre-install Google Mobile Services (GMS) due to sanctions imposed by the U.S. government, which largely affected the competitiveness of its phones in overseas markets.
It is worth noting that in recent years, Huawei has been increasing its investment in ecosystem construction. It is not only maintaining the HarmonyOS system, but also launching its own app store, game center, office suite, etc., striving to build an independent ecosystem. But to compete with Apple's ecosystem, Huawei still needs to work longer.
Challenges faced by Huawei
Looking at the differences between Apple and Huawei, we can see that if Huawei is to finally surpass Apple, it must overcome some of the major challenges it is currently facing.
Chip supply issues. Due to U.S. government sanctions, Huawei is unable to access chips and related technologies from U.S. companies. This has seriously restricted Huawei's development in the field of high-end products such as flagship mobile phones. Although Huawei has been increasing its investment in independent research and development, it will take time to completely break away from external dependence.
Brand image is also a major challenge for Huawei. Huawei's image in overseas markets has been damaged to a certain extent due to the U.S. government's allegations. How to rebuild the brand image and win the trust of more users is a problem that Huawei needs to consider.
In order for Huawei to eventually surpass Apple, in addition to making efforts in product innovation and ecosystem building, it also needs to properly address the above challenges, especially chip supply and operating system substitution. This is undoubtedly a long and arduous process, which requires long-term and sustained efforts from Huawei.
We can see that there are clear differences between Apple and Huawei in the smartphone market. Apple has long been an industry leader with its high-end products, outstanding innovation capabilities, and complete ecosystem. Huawei, on the other hand, has performed well in the low-end market, and has also made innovative breakthroughs in 5G, AI, and cameras, but it is still slightly behind in terms of ecosystem construction.
If Huawei wants to eventually surpass Apple, it must break through the major challenges it is currently facing, such as chip supply and operating system substitution. This is a long and arduous process that requires long-term and sustained efforts from Huawei. Only by properly solving these problems and making efforts in product innovation and ecosystem building can Huawei eventually catch up with Apple and become the new leader in the global smartphone market.