Huawei leaving the low-end market, focus is on premium smartphones


Let's face it, long gone is the time when Huawei was mostly known for its budget-friendly smartphones. The Chinese company is now world's number 3 handset maker, and not due to mainly selling low-end smartphones.

After trying to build itself an entirely different image, one that would not be associated with cheap smartphones, Huawei has decided to drop the budget-friendly smartphone market altogether.

Richard Yu recently confirmed that the profit his company makes for selling low-end handsets is too small, which means the business model is not sustainable any longer. Going forward, Huawei will focus on premium products and markets with a healthy economy that will allow the company to sell this type of products.

 
It appears that an expansion in the United States would require more planning since it's not among those markets prioritized by Huawei yet. Even so, all flagship smartphones released by Huawei are likely to make it to the US as well, just not at first.

source: Bloomberg

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7 Comments

1. HillaryClinton2020

Posts: 191; Member since: Feb 08, 2017

Pigs fly when Chinese success on premium brands, ain't gonna happend

2. NoAllegiance unregistered

It's about time, Sony and HTC gave up too, get in line LG.

7. -swagfox-

Posts: 45; Member since: Dec 01, 2016

sony is still at it. Xperia XA/L1 series

3. ibend

Posts: 6747; Member since: Sep 30, 2014

Their "honor" brand still doing fine serving low and mid-end, and their main brand should focus on high-end

5. chenski

Posts: 773; Member since: Mar 22, 2015

They should keep their Honor brand, budget price with flagship specs

4. Awalker

Posts: 1981; Member since: Aug 15, 2013

There's no money to be made at the low end especially with people demanding more for lower cost. It's not a sustainable business model.

6. redmd

Posts: 1941; Member since: Oct 26, 2011

Slap a stock android and you're good to go Huawei

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