Homepage / Asia / Huawei wants to be the world’s top smartphone maker by selling to these customers
Amazon says this Prime Day was its biggest shopping event ever Kudlow says President Trump is 'so dissatisfied' with China trade talks that he is keeping the pressure on As stocks regain their footing, an ominous warning looms Goldman Sachs downgrades Clorox to sell, says valuation is 'unsustainably high' How Satya Nadella has spurred a tripling of Microsoft's stock price in just over four years Kudlow says economic growth could top 4% for 'a quarter or two,' more tax cuts could be coming The one chart that explains Netflix’s stunning comeback US housing starts plunge 12% in June to a nine-month low Aerospace titans Boeing and Airbus top $110 billion in orders at Farnborough Target uses Prime Day to its advantage, logging its 'biggest online shopping day' so far this year Billionaire Marc Lasry sees bitcoin reaching up to $40,000 as it becomes more mainstream and easier to trade These are the 10 US airports where you're most likely to be hacked Amazon shares slightly higher as investors await Prime Day results Wreck of Russian warship found, believed to hold gold worth $130 billion A bullish ‘phenomenon’ in bond market is weeks away from fading, top credit strategist says Stocks making the biggest moves premarket: MS, GOOGL, TXN, UAL, NFLX & more Twitter shares up 50% since late April means most upside priced in, analyst says in downgrade EU fines Google $5 billion over Android antitrust abuse Mortgage applications fall 2.5% as buyers struggle to find affordable homes America may not have the tools to counter the next financial crisis, warn Bernanke, Geithner and Paulson Investors are getting spooked as the risk of a no-deal Brexit rises EU expected to fine Google $5 billion over Android antitrust abuse Ex-FBI chief James Comey urges Americans to vote for Democrats in midterm elections Elon Musk apologizes to British cave diver following baseless 'pedo guy' claim Disney, Comcast and Fox: All you need to know about one of the biggest media battles ever Xiaomi shares notch new high after Hong Kong, mainland China stock exchanges reach agreement The trade war is complicating China's efforts to fix its economy European markets set for a strong open amid earnings; Google in focus Hedge fund billionaire Einhorn places sixth in major poker tournament The biggest spender of political ads on Facebook? President Trump Asian stocks poised to gain after Fed's Powell gives upbeat comments; dollar firmer Stocks are setting up to break to new highs Not all FAANG stocks are created equal EU ruling may be too little, too late to stop Google's mobile dominance Cramer explains how Netflix's stock managed to taper its drop after disappointing on earnings Airbnb condemns New York City's 'bellhop politics,' threatens legal retaliation Amazon sellers say they were unfairly suspended right before Prime Day, and now have two bad choices Investor explains why 'duller' tech stocks can have better returns than 'high-flying' tech names Elon Musk is 'thin-skinned and short-tempered,' says tech VC Texas Instruments CEO Brian Crutcher resigns for violating code of conduct Google Cloud Platform fixes issues that took down Spotify, Snapchat and other popular sites Uber exec: We want to become the 'one stop' transportation app 'What a dumb hearing,' says Democrat as Congress grills tech companies on conservative bias Amazon shares rebound, report says Prime Day sales jumped 89 percent in first 12 hours of the event How to put your medical history on your iPhone in less than 5 minutes Investment chief: Watch these two big events in 2018 Even with Netflix slowing, the market rally is likely not over Cramer: Netflix subscriber weakness debunks the 'sky's the limit' theory on the stock Netflix is looking at watch time as a new area of growth, but the competition is stiff Why Nobel laureate Richard Thaler follows Warren Buffett's advice to avoid bitcoin Rolls-Royce is developing tiny 'cockroach' robots to crawl in and fix airplane engines After Netflix plunge, Wall Street analysts forecast just tame returns ahead for the once high-flying FANG group Roku shares rise after analyst raises streaming video company's price target due to customer growth China is investing 9 times more into Europe than into North America, report reveals Amazon says US Prime Day sales 'so far bigger than ever' as glitch is resolved Netflix is on pace for its worst day in two years US lumber producers see huge opportunity, rush to expand San Francisco to consider tax on companies to help homeless Homebuilder sentiment, still high, stalls as tariffs, labor and land drive up costs Powell backs more rate hikes as economy growing 'considerably stronger' Netflix history is filled with big stock declines – like today – followed by bigger rebounds Intel shares get downgraded by Evercore ISI due to rising competition from Nvidia, AMD Petco aims to reinvent the pet store with something you can't buy online Genetic testing is coming of age, but for consumers it's buyer beware Tech 'FAANG' was the most-crowded trade in the world heading into the Netflix implosion, survey shows Netflix weak subscriber growth may indicate a 'maturity wall' that could whack the stock even more: Analyst This chart may be predicting the bull market's demise Wall Street says Netflix's stock plunge is a ‘compelling’ buying opportunity because the streaming giant ‘never misses twice’ Tesla sinks after Musk tweets, again Boeing announces new division devoted to flying taxis Stocks making the biggest move premarket: NFLX, UNH, GS, AMZN, WMT & more Deutsche Bank downgrades Netflix, but says big subscriber miss is not 'thesis changing' IBM is experimenting with a cryptocurrency that’s pegged to the US dollar North Korea and Zimbabwe: A friendship explained Virgin Galactic spinoff Orbit to launch rockets from the UK with space deal Artificial intelligence will create more jobs than it destroys? That’s what PwC says ‘Treasonous’ Trump and ‘Putin’s poodle:' Scathing headlines follow the Trump-Putin summit China’s fintech companies offer ‘enormous’ opportunity, investment manager says Trump's performance at summit with Putin was 'unprecedented,' experts say Walmart and Microsoft link up on cloud technology as they both battle Amazon European stocks seen mixed amid earnings; Fed’s Powell to address Congress How I knew I should quit my day job and run my start-up full-time: Viral website founder China's stocks have been trounced, but the trade war may ultimately be good news for those shares Billionaire tech investor Peter Thiel bets on crypto start-up Block.one Asian shares subdued open after mixed close on Wall Street; energy stocks under pressure Amazon cloud hits snags after Amazon Prime Day downtime Netflix isn't doomed by one quarter unless people start questioning the long-term investor thesis Tech stocks set to sink on Tuesday after rough evening for ‘FANG’ Netflix plummets after missing big on subscriber growth This wristband lets humans control machines with their minds The U.S. has a rocky history convincing Russia to extradite computer criminals Amazon suffers glitches at the start of Prime Day Jeff Bezos is now the richest man in modern history 'The United States has been foolish': Read Trump and Putin's full exchange Goldman Sachs recommends these 5 highly profitable companies — including Nvidia — to combat rising inflation Goldman Sachs releases 'tactical' stock picks for this earnings season Three red flags for Netflix ahead of its earnings report The bond market may be raising recession fears, but don't expect one anytime soon Cramer: Banks are 'making fortunes' but are still as hated as they were during the financial crisis Putin told Trump at summit: Russia never meddled in US election


Huawei wants to be the world’s top smartphone maker by selling to these customers

SHENZHEN, China — Chinese tech firm Huawei has clawed its way to the top in China and now it wants to clobber Apple and Samsung globally by selling to richer customers.

“We’re more focused on developed countries, instead of developing countries,” Richard Yu, CEO of Huawei’s consumer business group, told CNBC. That’s because they’re more likely to have a better economy and stronger consumer spending power, he said.

“Everybody knows that profit is on high tier, low tier no profit, and the middle tier very few margin (cld cut this part of quote if you think too long) … to be honest, we have no interest in the low end,” Yu said, adding that “Huawei is a company good at technology, innovation … we believe we can bring more value to the high-end users” who care about better design and user experience.

Huawei has made it big at home, and it has expanded ambitiously in a quest to become a global brand. It’s now the world’s third-largest smartphone maker, accounting for nearly one-tenth of the market. But profits are getting harder to come by, and the company still lags behind Samsung and Apple with 22 percent and 15 percent of the market last year, according to industry research firm Canalys.

Experts say the company is doing poorly in key markets like Indonesia and India — and the U.S. remains elusive.

“The U.S. is a must-have,” said Mo Jia, an analyst at research firm Canalys. “Only by obtain[ing] a sound presence in the U.S., Huawei could have the chance to claim its crown in the global smartphone market.”

On Thursday, Huawei’s consumer business group said sales for the first half of the year increased 36.2 percent to 105.4 billion yuan ($15.6 billion), with smartphone shipments up by 20.6 percent to 73 million units. The company expects to keep pace for the second half, shipping 140 to 150 million phones by the end of this year, but that’s only a tad higher than the 139 million phones it sold last year.

So there’s still a ways to go, especially if Yu’s division is to hit its own target of $100 billion in revenue by 2020. To get there, Huawei will keep prioritizing higher end customers in markets like Europe and Japan, where it’s done well — phone shipments in Europe were up 18 percent in the first half of the year, led by Italy.

“Rome was not built in a day; everything you have to do it step by step,” Yu said. “And the U.S. will be our next step … they need a better product, also better innovation from better vendors, from Huawei.”

Yu declined to discuss specific growth plans in the U.S., but said the fast-changing tech industry meant companies couldn’t go it alone. “You cannot do everything by yourself; you have to do many things with partners.”

The company already partners with a range of companies including Leica, which industry analysts have touted as a success, allowing Huawei to launch dual-camera technology. It’s also going keep building tens of thousands of stores, some operated with partners, hitting 56,000 shops by year-end.

Looking ahead, Yu said Huawei would launch the world’s first artificial intelligence-powered processor in a smartphone before the end of 2017 — with a planned launch around the same time as Apple’s iPhone 8.

Yu wouldn’t give further details, but Huawei is expected to put out its Mate 10 phone, a product that he said would beat the competition by a mile with a longer battery life, faster charging speed, and great camera capabilities. “Huawei has even more powerful products,” he added.

Looking ahead, the company is developing even smarter — intelligent — phones that will know users well enough to offer tailored services.

“Our strategy: bring smart life to the consumers, when you’re walking, living, traveling, when you exercise,” Yu said. “No matter in which scenario, Huawei can always help you with that — a seamless smart life.”

Yu is unfussed about competition from domestic Chinese competitors Oppo and Vivo that offer much lower-cost phones, and have splashed big in advertising. Spending on marketing is not the way to outrun others — it’s developing far superior technology, Yu said.

“You should have leading technology, better innovation, better experience … sustainable growth is from continued investment,” he said. “We want to survive.”

Source: cnbc china
Huawei wants to be the world’s top smartphone maker by selling to these customers

Comments are closed.