Huawei which stifled the iPhone’s momentum in China is becoming one of the world’s most powerful smartphone brand and a strong competitor of Apple and Samsung.
After giving up from their previous model of filling the planet with cheap cellphones, Huawei has risen to become a serious and recognizable brand. Europe, in particular, has welcomed Huawei which has grown at an unprecedented speed.
Huawei which started as a producer of phone switches became a global leader in telecommunications networks by 2012 and now has risen to become world’s top brand with its prime product: smartphone.
The rise of Huawei as the world’s most powerful smartphone brand was obtained by the change of the business model through an initiative to drastically increase the quality of their phones as well as several major ad campaigns designed to draw the attention on the new branded smartphones.
Another reason why the Shenzhen-based company has had major growth it’s because of the billions of yuan invested every year in technology following promotion campaigns and cutting off lower-end product lines.
Beyond China, where they proudly maintain the number one smartphone brand, Huawei has had major developments by aggressively entering into new markets; with a focus on Europe where they are the number two Android phone. Huawei’s dramatic rise in European was as a result of major improvements in product quality and followed by a very high profile advertising blitz. Another reason for the major success in Europe is attributed to Huawei’s long-time relationship with local carriers.
Let’s have a look at the rise of Huawei’s brand by the numbers throughout the recent years:
Revenue grew to $42.03 billion (283.1 billion yuan) in the first six months of 2017 from 245.5 billion yuan a year earlier.
Chief Executive Ken Hu said in his New Year’s message at the end of 2017 that Huawei expects 2017 revenue to rise 15% to 600 billion yuan ($92.08 billion). That represents the slowest growth for Huawei since 2013. Hu also noted that Huawei's smartphone shipments in 2017 reached 153 million units and its global market share hit 10 percent.
The CEO of Huawei's consumer business group, Richard Yu, stated that in 2018 they will have disruptive products and innovative technology to lead the global market. He believes that 2018 will be the first year that they will truly be walking the road to global prominence.
Yu also stated that Huawei’s Mate 10 series launched in October which is also Huawei’s most expensive model to date sold extremely well but didn’t disclose a number. Mate 10 was the answer to the 10th anniversary of iPhone and a strong competition of Samsung.
Even though the company is catching up with Apple and Samsung in terms of total phones sold, Huawei is yet to see the same huge profit margins that those rivals enjoy. But if the current trajectory continues, Huawei might be a stronger competitor to Apple and Samsung in 2018.