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Huawei plans to survive smartphone war, ship 60 million smartphones in 2012

Posted: , by Victor H.

Huawei plans to survive smartphone war, ship 60 million smartphones in 2012
Huawei has just made public its brave plan to ship 60 million smartphones in 2012, as it steps up in high-end phone manufacturing. Huawei Chairman Richard Yu stressed that the smartphone industry is about to undergo some huge changes and eventually only three to four vendors will survive. He examplified by saying that currently Apple grabs over 70% of the industry’s profits, while Samsung gets another more than 20%, leaving very little space for the rest fo the vendors.

“In (the) future, in the handset industry, only three to four vendors can survive,” Huawei Devices Yu repeated numerous times in an interview for Mobile World Live. “We hope we will be one of the survivors.”

And while quality is definitely a number one priority - making the Huawei brand known - scale is also of crucial importance for Huawei. Yu mentioned that in order for a company to survive it absolutely needs to have the scale, and that’s why Huawei will put all efforts into reaching its target of 60 million smartphones sold.

The Huaweir Chairman dodged a question on whether there’s enough space for two Chinese phone makers - Huawei and ZTE - in the market, by saying that it’s the quality of the products that will determine who will survive the smartphone war.

Huawei also hopes to become a $100 billion-a-year company, also a goal in bumping scale.

For 2012, the company relies on its Huawei Ascend D quad and its XL version with bigger battery. The handset has a quad-core home-grown processor and aims to be the fastest Android out there, but it should come sooner rather than later and that seems to be a problem. Release date for the Ascend is rumored to have slipped to July.

If however Huawei overcomes those hurdles, it’s got the chances to find its place under the Android sun. Hit the source link below to see the full video interview and share your opinions about Huawei in the comments below.

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posted on 29 Mar 2012, 04:32 2

1. ardent1 (Posts: 2000; Member since: 16 Apr 2011)

It's sad but true. In the future, there will be fewer android handset manufacturers in world. I have been saying for a while that android handsets are basically a commodity since all android OEMs get android OS for free and the parts are readily available from multiple vendors. Additionally, economic principles tells us the low cost producer typically wins in these situations, ceteris paribus. It's the cost structure.

Both ZTE and Huawei are low cost producers that can copy anything Samsung makes so it does not bode well for the LG's, HTC's, or Moto's of the world. I still believe if you give Huawei or ZTE two years to learn the US market, they will take (market) share from the exisiting android handset OEMs. Huawei and ZTE were smart to begin their US conquest by selling devices to the Cricket's and Metro PCS of the world.

posted on 29 Mar 2012, 04:42

3. jcpwn2004 (Posts: 314; Member since: 18 Jan 2012)

agreed, i think in a couple years we'll be down to huawei or zte, samsung, nokia & htc.

Of course apple, and maybe rim.

I don't think motorola will be gone because of google buying it.

Rim may still be around if they can get there act together.

I see lg and sony being out of the game though.

posted on 29 Mar 2012, 04:42 3

2. darac (Posts: 2156; Member since: 17 Oct 2011)

Apple, Samsung, Nokia, HTC, Sony, Google/Motorola, LG, Huawei, ZTE, Panasonic..and he thinks it will boil down to just 3-4 out of those?

I can't see HTC dying any time soon.
Googlerola? No way.
Sony? Hmm..
Nokia? Nope, they have too much user base in "developing world", not to mention MS.

posted on 29 Mar 2012, 08:02

5. wendygarett (unregistered)

First, defines high end phone. Do consumer cares about price when buying an overpriced iphones? No? Why? It is because a high end phone!! Consumer cares about brand more than the price!!
Apple? this fruit can last at least 2 years by just standing still and do nothing...
HTC? Its hard to make Sense UI died... and he has a strong-bond suppliers like dr dre and dropbox...
Samsung? an ios-liked interface make the envious carry him alive..
Motorola? she has a sugar daddy named Google...
Sony? A nice creative design will keep in consumer's memory forever...
Nokia? He still can survive in 5 years losses in the row... too stubborn to die though :) and yes, he is WP so he wont die...

posted on 29 Mar 2012, 05:08 1

4. B3BLW29 (Posts: 238; Member since: 02 Mar 2012)

Is it me or is the dude in the pic kinda scary?

posted on 30 Mar 2012, 01:27

7. B3BLW29 (Posts: 238; Member since: 02 Mar 2012)

All your bases are belong to us.. seriously the dude is scary..

posted on 29 Mar 2012, 09:39

6. rallyguy (Posts: 620; Member since: 13 Mar 2012)

Remember when GM launched Saturn because their quality sucked. They said Saturn would be the highest quality car GM made. Where is Saturn today? Because GM went back to make them as cheap as you can and they were junk.

I'll pay twice as much for a good quality phone that will last a few years at least. The younger generations and teenagers will always buy cheap because they don't have much money. This may cause the quality makers to raise their price as the quantity of the sales goes down, but I don't see Samsung, HTC, Moto, or Apple going anywhere.

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