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AH Primetime: Consolidation In China Could Benefit Huawei

September 5, 2015 - Written By Kristijan Lucic

Huawei is one of the biggest Chinese smartphone OEMs. This company is selling most smartphones in China alongside Xiaomi, they’re currently close second as far as sales go. That being said, Huawei has been around for a long time now, and they have plenty of experience in the mobile sector. The company has released a number of really interesting devices in the last year or so, and their most recent offering is the Huawei Mate S handset which was announced at IFA which is taking place in Berlin as we speak. Huawei has also showcased their P8 line of devices, Honor 7, Honor 7i, Android Wear-powered Huawei Watch, etc.

That being said, the Head of Huawei’s Consumer Business Group, Richard Yu, said in an interview with The Wall Street Journal that the slowdown in China could trigger consolidation in the domestic smartphone market. This turn of events would actually benefit this China-based smartphone OEM. Huawei is currently the 3rd largest smartphone OEM in the world (according to IDC), and 2nd-placed in China, which is surely commendable for the company. The company’s shipments rose 39% to 48.2 million units in H1 2015, while Xiaomi sold 34.7 million smartphones in that very same period. Based on these number, and if we look only the first half of this year, Huawei is the number one smartphone OEM in China, but we should wait until his year’s over before stating something like that, it will surely going to be interesting to see what happens until the end of this year, but Huawei is currently beating Xiaomi.

Mr. Yu has also added that Huawei intends to sell ‘several millions’ of Mate S handsets they released a couple of days ago. “In terms of technology we can do better than our competitors, but we need some time to build up the trust of the brand. With high-end phones we have a higher profit-margin, so more money to invest in research and development,” said Richard Yu. In conclusion, Mr. Yu has said that Huawei has big ambitions for the future and that they’ll do their best to push the company forward. Huawei still has a long way to go in certain markets, like the US market for example, and it will certainly going to be interesting to see what can they do there in the future.