Huawei became the world's largest smartphone company , overtaking Samsung in the second quarter for the first time, according to a new report from Canalys .
The majority of sales came from China as its international business suffers due to US.
The Chinese company shipped 55.8 million devices, 5percent less than the previous year, according to the research firm. Huawei left Samsung in second place, which shipped 53.7 million smartphones, a 30percent drop compared to the same period last year.
It is the first time Huawei has reached the top spot, and it is an ambition it has had for several years.
However, analysts doubted whether this was sustainable, given that Huawei's markets outside China have been hit by US against the company.
The company sold over 70% of its smartphones in China in the second quarter, while smartphone shipments to international markets fell 27% year-on-year from April to June.
In Europe, a key region for Huawei, the company's smartphone market share fell sharply to 16% in the second quarter from 22% in the same period in 2019, according to Counterpoint Research.
Given China's massive population, success there often propels companies to a large "global" market share.
"It will be difficult for Huawei to maintain its lead in the long term," said Mo Jia, an analyst at Canalys.
"Its main partners in key regions, such as Europe, are increasingly wary of using its devices. Strength in China alone will not be enough to maintain its position at the top once the global economy starts to recover," he said.
Last year, Huawei was placed on a US blacklist, which restricted access to American technology. This meant it couldn't use Google's Android on its latest flagships.
In China, where Google services like Gmail or the search engine are blocked, this is not a big deal, as Chinese consumers are not used to using these products. However, in international markets, not having Google is a big blow.
That's one reason why Huawei's rivals, which still have the option to use Android on their devices, have been gaining market share. For example, in Europe, Chinese company Xiaomi saw its market share rise from 6% in the second quarter of 2019 to 13% in the same period this year, according to Counterpoint Research.
Huawei was forced to release its own operating system called HarmonyOS, but analysts have previously doubted its success in international markets, given its lack of essential apps from the App Store.
The Chinese telecom giant has faced further pressure from Washington this year. A new rule introduced in May requires foreign manufacturers using U.S. chip-making equipment to obtain a license before they can sell semiconductors to the company.
This could affect Huawei's ability to source chips for its smartphones. It also designs its own processors, which are manufactured by Taiwan's TSMC, which could be affected by the new legislation.
