Huawei to Expand in US Smartphone Market Next Year

Huawei to Expand in US Smartphone Market Next Year

Chinese smartphone brand Huawei will start sales through US carriers next year, a Huawei executive said Monday, stepping up the No. 3 global handset seller’s presence in the home market of rival Apple Inc.

The president of Huawei Technologies Ltd.’s consumer business, Richard Yu, said he would announce details at next month’s Consumer Electronics Show in Las Vegas. He said sales would start with the flagship Mate 10 but declined to give a price or say through which carrier or carriers they would be sold.

Huawei sells some models in US electronics stores and online but has a minimal share of an American market in which most sales are through carriers. Globally, the company trails Samsung and Apple by handset shipments but leads in China, the biggest market, and says it expects to ship a total of 150 million units this year.

“We will sell our flagship phone, our product, in the US market through carriers next year,” said Yu in an interview. “I think that we can bring value to the carriers and to consumers. Better product, better innovation, better user experience.”

Yu expressed confidence the smartphone business wouldn’t be affected by American government concerns Huawei might be a security threat, which derailed US demand for its network gear.

“In consumer sales, when people really start using Huawei products, they will change their minds,” said Yu.

Huawei, founded in 1987 by a former military engineer, is the first Chinese brand to break into the top ranks of global technology suppliers.

The company, headquartered in Shenzhen, near Hong Kong, is the world’s biggest supplier of switching equipment used by telephone and internet companies. It has manufactured mobile phones since the 1990s and launched its own smartphone brand in 2010.

Huawei reported 2016 profit of CNY 37 billion ($5.4 billion) on revenue of CNY 521.6 billion ($75.6 billion). The company is owned by its employees, with no publicly traded shares, but reports financial results in an effort to allay security concerns in the United States and Europe.

Helped by a strong position in China, India and other developing markets, sales by its premium-priced Huawei and mid-market Honor smartphone brands have grown faster than those of Samsung or Apple. That prompted suggestions Huawei might pass its American rival.

In the latest quarter, Huawei’s handset shipments rose 16.1 percent over a year earlier to 39.1 million, well ahead of Apple’s 2.6 percent growth to sales of 46.7 million, according to IDC. Samsung sales expanded 9.5 percent to 83.3 million units.

“We are a Top 3 smartphone supplier but we are very close to the Top 2. So maybe quickly we can be Top 2,” said Yu.

The Mate 10, unveiled in October, offers an extra-wide display, high-end cameras and other advanced features at prices 15 to 30 percent below those of Samsung and Apple.

Yu said the Mate 10 will be “competitively priced” in the United States but Huawei expects to compete on performance instead of cost.

“Our strength is in developed markets,” where consumers will pay for performance, said Yu. “We are not a cheap, low-cost company.”

Also next year, Huawei plans to start selling through carriers in Japan, where its phones already are sold in stores, Yu said.

“I think next year is a very important year for Huawei,” he said.

Huawei’s US business suffered a setback when a congressional panel recommended in October 2013 that phone carriers avoid doing business with it or a smaller Chinese rival, ZTE Corp. Beijing rejected the report as false and an effort to block Chinese companies from the US market.

Huawei denied being a security threat and rejected the US complaints as politically motivated or possibly an attempt by competitors to keep it out of the market.

“They are lying,” said Yu. “We are a company that really cares about cybersecurity and privacy protection. We do a lot better than the other vendors.”


Apple, Huawei, Amazon Gain in Sluggish Tablet Market: IDC, Strategy Analytics

Apple, Huawei, Amazon Gain in Sluggish Tablet Market: IDC, Strategy Analytics


  • Overall tablet sales dropped to 37.9 million
  • Apple saw nearly 15 percent boost in iPad sales from a year ago
  • Samsung remained the number two vendor with a 15.8 percent market share

Apple, Huawei and Amazon boosted tablet sales over the past quarter, despite the ongoing slump in the overall market for the devices, surveys showed Thursday.

Overall tablet sales dropped 3.4 percent from the same period last year to 37.9 million, according to a survey by research firm IDC.

Apple’s nearly 15 percent boost in iPad sales from a year ago gave it a 30 percent share of the global market, IDC said.

IDC said Apple’s gains came from consolidating its lineup and introducing new tablets, including a 10.5 inch iPad Pro, which encouraged some consumers to upgrade.

Samsung remained the number two vendor with a 15.8 percent market shares as sales dipped one percent, the report said.

China-based Huawei meanwhile bucked the overall trend with a strong 47 percent gain in sales, vaulting to the number three position with an eight percent market share, the research firm reported.

IDC estimated that Amazon – whose sales figures are not reported – boosted its Fire tablet sales by 51 percent from last year to capture the fourth spot at 6.4 percent.

China’s Lenovo was fifth with a 5.7 percent market shares as sales dropped 14.6 percent from last year, the report said.

A separate survey by Strategy Analytics estimated a seven percent decline in global tablet sales to 43.8 million units in the April-June period.


Huawei Confirms It Refused to Manufacture Google Pixel Due to Lack of Branding

Huawei Confirms It Refused to Manufacture Google Pixel Due to Lack of Branding

Huawei Confirms It Refused to Manufacture Google Pixel Due to Lack of Branding
Huawei manufactured Google’s Nexus 6P smartphone
HTC eventually manufactured Pixel smartphones
Huawei wants its brand name to be known worldwide
Google’s first self-branded smartphone, the Pixel, has received warm response from critics since its launch last month. The Pixel smartphone has been manufactured by HTC but as it turns out search giant’s first choice for manufacturing these smartphones was Huawei. Huawei has reportedly confirmed that it denied the manufacturing contract for Pixel due to the lack of co-branding on the product.

Last month, reports suggested that Huawei was initially chosen to manufacture the Pixel but backed out of the deal once Google clarified that the OEM logo would not be placed on the smartphones. As per a report by German publication WinFuture, Huawei’s Vice President of the Consumer Business Group Colin Giles has confirmed that the fallout between the companies regarding Pixel happened over brand name.

According to Giles, Huawei didn’t want to remain just a contract manufacturer for the Pixel and wanted its own brand on smartphones as it wants to make its name better known worldwide. Notably, Huawei has previously manufactured Google’s Nexus 6P smartphone.

It should not come as a surprise move as Richard Yu, chief executive of Huawei’s consumer business group, has previously announced that the company wants to overtake Apple to become the second-largest maker of smartphones after Samsung.

Even though the company has established its brand in Asia, it still hasn’t been able to make a name for itself in developed markets outside Asia. It will be interesting to see if the companies will be able work together in future given the refusal by Huawei.

Tags: Google Pixel Huawei, Huawei, Mobiles, Android, Google


Huawei, LG, Motorola Pause Smartwatch Efforts, Will Not Release New Models in 2016

Huawei, LG, Motorola Pause Smartwatch Efforts, Will Not Release New Models in 2016


  • LG says that it wants to wait and see what sticks
  • Motorola doesn’t want to enlarge the dial to pack more components
  • Huawei wants smartwach tech to evolve first

Huawei, LG, and Motorola are not going to release new smartwatches in the latter part of this year. All three companies have confirmed that they do not intend to have any announcements regarding new smartwatches in 2016.

While Asus launched the ZenWatch 3 at IFA 2016, other companies remained conspicuously mum when it came to the wearables category. CNET reports that the three companies are calling for a timeout, in the wake of the release of Apple Watch Series 2 and the upcoming Samsung Gear S3. While LG released the Watch Urbane 2nd Edition LTE smartwatch in March, Huawei and Motorola refrained from coming out with any new product at all this year.

All three companies had announced smartwatches at IFA 2015, but that wasn’t the case this year. The report states that the companies are looking to observe and let the smartwatch industry grow a little before it can achieve building a product capable of competing well in the market. For now, Apple leads the market share in smartwatches, but that also saw a 55 percent drop in the second quarter, according to IDC.

Samsung, this year, made an even bulkier Gear S3 smartwatch to accommodate the LTE radio and enabling standalone capabilities. This would make many potential customers who look for a sleek smartwatch frown at the product. This is also one of the reasons why Motorola steered clear of releasing a successor.

“One of the things we see in the future is connected [cellular] watches, and our opinion is that while it’s technically feasible, the trade-offs on the product itself means we’re not quite ready yet,” a spokeswoman from Motorola told the publication.

LG spokesman Ken Hong told Cnet, “We want to see what sticks.” The company looks to see more demand in the market, and see if smartwatches have the potential to become a must-have device.

Huawei, on the other hand, wants to wait it out till the tech evolves to make a sleek product that could salivate customers. It is waiting for components to shrink, and processors to become faster before releasing a successor to the Huawei Watch.

Tags: Motorola, Huawei, LG, Wearables, Android Wear, Smasung Gear S3, Apple Watch Series 2, LG Urbane Watch,Moto 360