Huawei Abandons the Low-End Segment, Aims to Compete Directly Against Apple

Huawei Abandons the Low-End Segment, Aims to Compete Directly Against Apple

Huawei has continuously grown as a smartphone company to become the number 3 OEM in the world. They recently overtook OPPO in China during the first quarter of this year when they shipped one fifth of the country’s overall sales (by shipping 20.8 million smartphones). Their revenue growth did slow during the first half of the year, thanks to advertising costs and research into 5G technology, but now Huawei has decided to change up its business strategy.

First, the company plans to compete directly with the likes of Apple’s upcoming 10th anniversary iPhone. The company’s chief of Huawei’s consumer division, Richard Yu, came out and said the Huawei Mate 10 will be more powerful than what Apple plans to release with their upcoming iPhone. We’ve come to learn that Apple’s own custom chipset typically outpaces anything that Android devices use when it comes to synthetic benchmarks, but Mr. Yu focuses on specific areas here.

He says the Mate 10 will have a battery that will be able to last longer than Apple’s upcoming iPhone, and it will also charge much faster than it can as well. He mentions a “full-screen display,” which seems to coincide with some of the leaked renders we’ve seen published these last two weeks. Mr. Yu also boasts the photography capabilities of the Mate 10 and says their camera will perform better than Apple’s will too. He ends his statement by saying they also have “many other features” that will help them compete.

Huawei is said to ship up to 150 million smartphones by the end of 2017 as the company is making Europe, Japan and China their #1 priority. Mr. Yu even announced that Huawei’s business strategy is changing as they’ve decided to get out of the “very low-end” smartphone market entirely. He says that the profits from these devices are just too low that they can no longer spend any resources to continue manufacturing them.


Source: Bloomberg

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