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How do you think Huawei managed to become such a big competitor in the mobile phone market?

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Question added by Mariam Eid , Marketing and Communications Manager , Executive Solutions
Date Posted: 2017/03/13
Magdale Mandala
by Magdale Mandala , Job Analyst , Basq

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mostafa ali Abbas
by mostafa ali Abbas , telecommunications technician , LEBANESE ELECTRICTY GOVERNMENT COMPANY

Huawei already a big competitor in telocom and mobiles field

SYED OWAIS ALI
by SYED OWAIS ALI , Telecom Systems Engineer , Space Top Company Ltd

It deserves to be a big company.

HUAWEI EQUIPMENT IS FRIENDLY USER AND STABLE

Ahmed Labib
by Ahmed Labib , Enterprise architecture division manager , TE Group

  • Multiple models at different price points to target various market segments.
  • Form factor & build quality are relatively better at each price point.
  • cost vs. value&features is really reasonable specifically in the low end - medium range models.
  • Campaigns & branding positioned the handsets in a deferent spot for the consumer mindset than any other Chinese manufactures.
  • Very aggressive cost & supply chain control without compromising quality.

Fazle Samad
by Fazle Samad , Electrical and Electronic engineer , Pak Marine

For me, managing competitors is not an issue because if you keep the standard of your product same as like your competitors but keep the its cost slightly lower then theirs' then you are the winner.

Razzi Haider Zaidi
by Razzi Haider Zaidi , Accountant , Batala General Trading LLC

 

There are many reasons which made Huawei a viable competitor to Samsung and Apple and some other striving brands like Oppo, Lenovo/Motorola, HTC, Sony, Xiaomi, Vivo, etc. As per my understanding, these reasons include:

  • Understanding Strength & Weaknesses of Huawei itself & its Competitors

You can't compete in a global market unless you make an analysis of your company's strength and weaknesses as well as your competitor's strength and weaknesses. 

Huawei has seen opportunities for what the customers want and what is currently been offered by its         competitors. They realized that customers are not happy with the then Mid level smartphone because       they were costly and under-rated in terms of performance and value for the money.

Huawei ensured that what people want and what the companie were offering at that time was not enough for them, for example RAM, Camera, Screen, Storage, Connectivity.

  • FOCUS ON MID LEVEL SMARTPHONE MARKET

In developing countries, people cannot afford to buy premium smartphones, thus they tend to buy entry level smartphones. Huawei saw this and it started to make Mid level smartphones by introducing the mix of premium and entry level smartphone features in a Mid Level smartphone. This wowed the customers overall. Huawei also focused on Chinese market which is the biggest smartphone market in the world. It build the strategy to conquer this market first.

 

  • INNOVATION IN HARDWARE & SMARTPHONE DESIGN

Two to Three years ago, smartphone market got stagnant because Apple & Samsung were dominating it. While having almost 90% of all the global smartphone shipments was comprised of these two companies. These two companies were having solid profits every year and were not facing any competition from competing brands. They did not needed to design or innovate further as the sales and profit was falling in their laps automatically. In those days smartphones were bulkier and were entirely made of cheap plastic. 

Huawei, Xiaomi, Oppo, Oneplus, Lenovo, changed the scenario by offering premium level specs in mid level phones. They changed the design by using premium material like Glass, metal, matte finished plastic, etc. at lesser price.

 

  • BUILDING ITSELF IN-HOUSE CHIPS (Processor & GPU)

To minimize the cost of phones, Huawei started its own factory to build ARM based mobile processors and GPU's also known as (High Silicon Kirin)which saved them a lot of per unit cost. This reduced its relying on other manufacturers like Qualcom, TSMC, MediaTek, Intel, Spreadtrum which also were accounted for higher costs of using other manufacturer's processors.

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  • DIVERSIFICATION

The main reason for Huawei's success is that it has made smartphones in all price groups like Low, Mid & High by using all the cheap & premium materials in every price tier with the combination of all screen sizes. They knew what the customers wanted, and they offered them in reduced rates. To penetrate itself in American market, it introduced the mobiles as HONOR brand which has gained much appreciation in western market.

 

 

There could be many other reasons, but Huawei has learnt from Apple's and Samsung's "lack of innovate" policy. These companies ignored their customers needs, so market needed a change as the customers were getting bored of samsung and apple designs.

If you look at the smartphones announced in 2012-2015, Samsung's Galaxy S2, S3, S4, S5 & Apple's Iphone 4, 4S, 5, 5S, all were lacking innovative design and the proceeding phones were an incremental update. In this era Samsung sticked with its plastic design & Apple carried its glass and metal design.

 

Huawei has given us Glossy plastic, Metallic, Brushed Aluminum, and Glass designed phones in mid level smartphones at lower costs. These are premium designs and are available in flagship smartphones, 

Huawei has also introduced Higher RAMS & ROMS in mid level category and made 2GB RAM & 16GB ROM as standard.

Huawei has used  S-LCD with HD resolution screen in mid level phones and made it a standard

 

These are the factors and features which Huawei has done before samsung and apple to become one of their competitor nowadays.

Ehab Al hamayel
by Ehab Al hamayel , Senior Hardware Design Engineer , Sila Disinfection Technologies

i still remember my first android phone it was Huawei !huawei has engaged the smartphone business in the same period that samsung started selling its successful galaxy range. the huawei smart phones were and still feature-rich with competitive price tags ! there new designs are made with relatively high quality materials and nice external design , some of there phones have a market leading technologies, so it isn't surprising me to see theme success in this sector.

Muhammad Aamir Zahoor
by Muhammad Aamir Zahoor , Incharge of Project level work , Protean Engineering Services

yes against samsung mobile huawei big competitor

Need to help the company to inprove the the Huawei company and more sales and costumers coming, to become Papular and famouse branch Huawei international number one of all branch.

Mohammad AbdAlla
by Mohammad AbdAlla , Quality Analyst , webhelp

analysis is the answer if you can analyze the market needs you can win 

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