Huawei strategies to boost device biz in 2015

The #3 smartphone vendor Huawei has increased its smartphone market share to 5.3 percent in Q3 2014 from 4.7 percent in Q3 2013.

Several strategies have assisted the Chinese phone brand to capture 5.3 percent share in the global smartphone market competing against Samsung, Apple, Xiaomi, Lenovo, etc.

The rapidly growing LTE smartphone space was one of the main strategies of Huawei to gain share. The Chinese device company made gains in the LTE smartphone market with handsets like the Ascend P7.

Huawei launch

2014 sales till now

2014 proved to be a great year for Huawei as its smartphone shipments grew 62 percent year-over-year in the first half of the year.

The company associated with sports in a big — both in India and abroad.

The company shipped 64.21 million devices in the first half, including 34.27 million smartphones, which is 43 percent of its goal of shipping 80 million smartphones in 2014.

Huawei has taken sales of its low-price Honor brand of smartphones to 20 million from 1 million in one year, by using online-only strategy like Xiaomi.

The shipment of devices rose 26 percent to 32.03 million in Q3 2014. The mid- to high-end devices grew 162 percent, comprising 26 percent of total shipments.

In Q3 2014, Huawei Consumer business grew 32 percent in the Middle East and Africa, 98 percent in Asia Pacific and 51 percent in Latin America. In 2014, Huawei has expanded its smartphone presence across emerging phone markets.

Huawei’s smartphone growth was stunning – from 4.7 percent in Q3 2013 to 5.3 percent in Q3 2014. Gartner observed that though Huawei moved into the No. 3 position in the third quarter of 2014 there is still less than 1 million units between the bottom-three smartphone vendors in the top five.

In Q3 2014, Samsung had smartphone share of 24.4 percent against 32.1 percent in Q3 2014, Apple 12.7 percent (12.1 percent), Xiaomi 5.2 percent (1.5 percent) and Lenovo 5 percent (5.2 percent), said Gartner.

Devices

Huawei launched devices like Ascend P7 and Honor series that received good response from the mobile consumers.

Honor Holly smartphone sales surpassed twenty thousand units within 5 days of its launch in the Indian market.

Honor is Huawei’s online brand and it announced all four Honor devices – Honor6, Honor Holly and Honor X1 tab and Honor T1 tablet — in India in October this year, exclusively available with Flipkart, an online sales channel.

Huawei Honor seriesHuawei Ascend P7 global shipments passed three million units till September, with the smartphone now available in over 110 countries and markets globally.

Huawei Ascend Mate7, launched globally in September 4, sold out across more than 1,000 retail outlets in China on its first day of commercial availability.

Huawei Ascend P6 sale has reached five million units and the smartphone is now available in more than 120 countries throughout Europe, the Middle East and Africa, and Latin America.

Strategies for 2015

Huawei has announced plans to further increase procurement spending in the EU as part of its European investment strategy.

The company has $3.4 billion worth of components, engineering and logistical services from Europe in 2013. In 2015, Huawei is expected to make direct purchases worth $4.08 billion.

The company plans to double its R&D staff in the next three years and will hire 5500 more staff in the next five years.

Huawei will continue to provide its services and further build up its consumer’s confidence. Their team and R&D department will also continue to develop such designs and strategies that would further establish new standards of services.

Upcoming devices

Huawei has also entered into Android wearables. The company will be launching the smartwatch in 2015. The company is planning to develop a smartwatch that might resemble Sony’s SmartBand Talk.

Huawei said that the upcoming smartwatch will be innovate and beautiful, but the shape and size of the device is yet to be unveiled.

The company also plans to launch new smartphones with 4G LTE support under Rs. 10,000 in the Indian market by mid 2015.

“Within 3-6 months, we have plans to launch 4G handsets below Rs 10,000. The combination of our own patents and arrangement with other companies has helped us in making devices in affordable price range. We sell devices which mostly use our patent technologies,” said P Sanjeev, director of Huawei.

Vishal Kawadkar
editor@gizmolead.com

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