Competition between smartphone companies is neck-and-neck as Chinese manufacturer, Huawei, slides into second place as the most shipped mobile brand globally.

This change has bumped Apple into third place for global smartphone shipments, according to reports from the IDC and Counterpoint Research. While the number of Huawei devices on the market has steadily increased, the amount of Apple smartphones has remained relatively stagnant.

Samsung maintains its number one spot, but the Galaxy device marker has seen a steady decline in device sales. Its recent earnings report indicates that the Galaxy S9, which released March 2018, has not done well commercially. Analysts previously estimated the device might ship around 31 million units, but Samsung has actually moved about 19 million Galaxy S9 handsets. Its design similarity to the Galaxy S8 is among many reasons the Galaxy S9 did not get a lot of consumer attention.

Samsung suffers from lack of originality

The Galaxy Note 9 is set to release next week and Samsung may be bringing its next device to market early to lead the pack into the late 2018 release season. Samsung is already accepting reservations for consumers to purchase the Galaxy Note 9. There is also speculation that Apple’s next iPhone launch event could take place around September 12.

By that time the Galaxy Note 9 would have been on the market for almost three weeks, giving Samsung a decent head start after an August 24 release. However, the productivity branded Note series is a niche product in Samsung’s lineup and doesn’t sell nearly as much as the S series. While there are many Galaxy Note fans, jokes about the ill-fated Galaxy Note 7 still loom, and consumers were similarly not that impressed with the Galaxy Note 8 in 2017. Rumors suggest Samsung may add a new Bluetooth functionality to the device’s S-Pen stylus to bring a more unique feature to the market.

There is a possibility that Samsung is waiting to put a host of new technology into several 2019 devices, including the rumored Galaxy S10 and the Galaxy X. The Galaxy S10 may include an in-display fingerprint scanner, while the Galaxy X may actually be Samsung’s long-rumored foldable display smartphone. If true, such features could bring Samsung back to the forefront of premium devices, in the same way, a new design and features on the iPhone X put a reinvigorated spotlight on Apple.

Samsung’s flagships often ebb and flow in terms of consumer interest but its other mid-range, low-end and specialty lines are the core of its global shipments. Many less expensive models are now getting the newer features, such as dual-cameras, biometric authentication functions and higher RAM, storage and power capacities.

Huawei has long been a global golden child

Huawei has adopted a similar strategy of giving consumers the flagship experience without the flagship price to dethrone Apple as a leader in global shipments. Though the Chinese manufacturer has had issues with making its devices readily available in the U.S. Huawei and its subsidiary Honor brand are household names in Europe and Asia. Devices including the Huawei Mate 10 and the Honor P20 have been well received internationally, with the latter being a consumer favorite due to its camera and its fun kaleidoscope color pattern.

Huawei was preparing to get a stable footing in the U.S. earlier this year with carrier affiliations; however, these plans were halted due to government intervention. Huawei was able to push forward despite the blow, due to its stable footing in other markets. Other Chinese manufacturers, such as ZTE, have suffered due to time being banned in the U.S.

Huawei has just crept passed Apple in terms of devices shipments. The company’s real challenge will be to maintain this lead. Analysts will surely keep an eye on whether Huawei will continue to grow in terms of shipments or if it will flip-flop with Apple between second and third place.

Huawei has strengthened its influence in the last year with the release of its Kirin 970 chip, which it branded as the first artificial intelligence processor on the market. Several devices, including the Honor 10 and the Honor View 10 have been marketed for special AI capabilities, especially in terms of camera functions.

New reports suggest the rumored Mate 20 and Mate 20 Pro devices could be the smartphones to beat the iPhone X and its upcoming successors. The manufacturer also recently released the Honor Note 10, a 7-inch phablet version of its other devices.

Apple shouldn’t be scared but at least cautious

Meanwhile, Apple has been cruising along with the apparent success of the iPhone X. Steady sales for the iOS manufacturer is definitely better than a decline, but no growth could lend to caveats in Apple’s recent popularity. Consumers were wowed by the new design and upgraded features on the iPhone X, but many were taken aback by the $1,000 price tag of the device.

While Apple also released iPhone 8 models and kept several older models in its lineup at lower prices, there is a clear demarcation between the old iPhones and the new iPhone. The iPhone X has several features, such as Animoji, which are not backward compatible with older iPhones. This has caused a bit of fragmentation in iOS software, at least for the past year.

Current leaks and rumors indicate at least three upcoming iPhone models will play well with the iPhone X, but the question remains as to whether all of these devices will have super-premium price tags that could further deter customers. Apple has always been a considered a luxury brand, but most are familiar with its latest and greatest devices starting at $649.

Two of the new devices may have LCD displays instead of OLED, which could help to make their prices more consumer friendly. Apple is at an interesting juncture because new devices with an iPhone X design and an iPhone 8 price could easily make Huawei’s shipment bump a minor fluke, while more expensive models could continue to eat away at Apple’s market care.