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The Shenzhen-based company shipped nearly 30 million phones in the three-month period ending in March, up 41 percent from the same period last year. Apple sales in the first quarter fell by 30% to 6.5 million phones, the worst decline in two years, according to Canalys.
Canalys said that this represented "the biggest drop in a quarter of the history of the iPhone".
In China, Huawei "is the strongest of all time," said Mo Jia, an analyst at Canalys. The company opened more brick and mortar premises, expanded into rural areas and filled its stores with devices and accessories to attract buyers.
The investments helped Huawei "win customers from other suppliers, such as Oppo and Vivo, who enjoyed absolute dominance over offline channels," said Jia.
Unlike Apple, Huawei and other Chinese smartphone manufacturers also offer a wide range of low-end to high-end models, allowing them to appeal to more cost-conscious buyers.
Huawei's strong first quarter growth came as the Chinese smartphone market suffered its worst contraction in six years, as overall shipments fell by 3 percent to 88 million.
Globally, Huawei is well positioned to surpass Samsung as the world's leading smartphone maker.
Market research firm IDC said Tuesday that Huawei's smartphone sales around the world had increased more than 50 percent in the first quarter, reaching 59 million devices. Samsung has sold more than 70 million smartphones over the same period, but this number has decreased by 8%.
"Huawei is now within Samsung's reach at the top of the global market," IDC said in a report.
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