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

Posted: , by Cosmin V. Cosmin V.

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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.

We are giving up the very low-end devices because the margin in this is extremely low, and it’s not making enough profit for us. The priority is Europe, China and Japan, where the economy is healthy and people are able to consume them.
 
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

7 Comments
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posted on 28 Jul 2017, 05:05 2

1. HillaryClinton2020 (Posts: 132; Member since: 08 Feb 2017)


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

posted on 28 Jul 2017, 05:06 1

2. NoAllegiance (unregistered)


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

posted on 28 Jul 2017, 15:46

7. -swagfox- (Posts: 43; Member since: 01 Dec 2016)


sony is still at it. Xperia XA/L1 series

posted on 28 Jul 2017, 05:21 8

3. ibend (banned) (Posts: 6747; Member since: 30 Sep 2014)


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

posted on 28 Jul 2017, 06:29

5. chenski (Posts: 582; Member since: 22 Mar 2015)


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

posted on 28 Jul 2017, 05:33 4

4. Awalker (Posts: 1703; Member since: 15 Aug 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.

posted on 28 Jul 2017, 08:46

6. redmd (Posts: 1398; Member since: 26 Oct 2011)


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

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