Huawei, a reputed name in technology is looking to exploit its resources in selling more higher-end smartphones, according to officials.
This new approach will certainly help the company to effectively compete with lower-cost smartphones vendors such as Xiaomi corp. As per Richard Yu, chairperson of Huawei’s consumer business group, “If we sold more low-end phones, we could even double our shipments…but in the low-end market, there is no margin.” The company is anticipated to around 30% of the mobile shipments will be made on the price of 2,000 Yuan ($320), an increment of 18% as compared to last year.
The world is influenced by cutting edge competition in smart phone market which is growing with a rapid pace. Apple inc. is the leader in higher-end sets and captured the global market, while most of the smartphone vendors use Google based android operation systems which are making efforts to offer some unique diversity to survive where rivals are all around.
There are number of low-cost mobile vendors in China that will no longer survive after the round up of five year, due to their short-term business models that stamp out them from sustainable periphery.” Said Mr. Yu.
Major Chinese brands are also expanding their global reach. On the other hand, Huawei has a prestigious brand in supplying network equipments to different telecommunication companies as well as swiftly building their image as a reputable smart phone brand simultaneously. According to official figures, the company generated 52% of their income from smart phone division by the year 2014.
The company is strengthening its existence in developing nations such as Pakistan, Venezuela and Colombia, stated by company. Even in Myanmar, when the trend of using smart phone is at initial phase, and the company has already seized the market share of 50%.
The consumer segment of Huawei is mainly comprised of Smart phones and the company is targeting to increase the revenues by 30% to hit $16 billion this year. The forecast is based on the same growth pace which was realized by the company in 2014 when the growth rate was 30% to reached $12.2 billion. Moreover, the company sold 75 million smart phones in 2014 and is likely to attain the milestone by shipping 100 million pieces this year.
