In Q4 2018, Huawei managed to grow smartphone shipments by +48% YoY and its smartphone wholesale revenue also up +75% YoY. Huawei is the biggest winner from the collapse of second tier and micro-vendors in China. Meanwhile, it gained strong momentum in all the regions except North America. Its product lifting strategy has started to pay dividends, indicated by its improved smartphone ASP. However, there are several risks and challenges that Huawei needs to carefully manage in 2019 and beyond.