Huawei says Tizen is doomed, Windows Phone - money down the drain

A Wall Street Journal interview with Huawei's top honcho, Consumer Business Group CEO Richard Yu, reveals the thinking and key strategic choices of a company that, along with several others, has been on the rise lately.

Perhaps most importantly, Yu said Huawei has absolutely no plans to push Tizen forward, despite spending research money on the Samsung-developed operating system and being concerned about a complete reliance on Android. According to Yu, Tizen "has no chance to be successful", which is likely the reason his company has been saying "no" to carriers when asked to design a Tizen phone. What's even more, Yu isn't feeling much better better about Windows Phone, either, specifically because the company has been losing money on its WP-based smartphones for some two years now. For that very reason, the exect says all Windows Phone devices are currently put on hold. 

The CEO also told the WSJ that it has no plans to build its own OS, even though "it's easy to design" one. The problem, as most of you will have realized already, is building the ecosystem around it -- a feat that even Microsoft is struggling with. The Huawei exec also said that his company is not planning on making a Lenovo-like acquisition (Motorola Mobility), and will instead focus on R&D. According to Yu, a bigger sales volume (that can be achieved through acquisitions, for example) can help with lowering costs, but it's R&D that will ultimately provide consumers with better value.

Huawei is now the third-largest smartphone vendor based on total device shipments and shipped 52 million handsets last year. According to Huawei, the company is also seeing higher profit margins than before, and is hoping to ship a whopping 80 million devices in 2014.

source: Wall Street Journal (subscription)

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59 Comments

50. VLaRueC

Posts: 189; Member since: Dec 18, 2012

Huawei is the RCA of phone companies except over seas. This article is like RCA saying they won't be making a line of televisions. At the end of the day, it's RCA..

43. NateAdam8

Posts: 439; Member since: Feb 17, 2012

And Huawei knows this when they're losing in sales to better OEMs but it's just one opinion.

37. arenanew

Posts: 286; Member since: Dec 30, 2013

is huwaei is any company i dont know what is hauwaei and phone arena or google paid to phonearena

40. elitewolverine

Posts: 5192; Member since: Oct 28, 2013

T-Mobile Prism is one of their devices...prism 2 as well Not to mention the myTouch 4g and slider phones too. http://support.t-mobile.com/community/phones-tablets-devices/android/t-mobile-prism-ii Just look at those amazing specs... Sorry they couldnt compete against Nokia in the WP space, and when you dont release a mobile OS and market it, this is what you get. They are struggling even in the Android market.

30. 0xFFFF

Posts: 3806; Member since: Apr 16, 2014

Yu confirms pretty much everything I've been saying about WP for a long time. The complete truth of the matter is that pretty every mobile company feels the same way. If it weren't for the checks from Microsoft -- which don't cover all the costs for some makers -- they wouldn't even make WP phones at all. Just money down the drain.

39. AfterShock

Posts: 4147; Member since: Nov 02, 2012

Ouch. That is going to leave a mark on the forehead of some WP fans.

28. dushyant

Posts: 94; Member since: Mar 14, 2011

Couldn't agree more.

23. inlinev

Posts: 16; Member since: Feb 02, 2014

I'm going to continue to root for the underdog. Windows Phone stands a good chance as the third ecosystem. That is the key distinction. Windows Phone is more than just another mobile OS. This seems to be an odd time to put Windows Phone on hold for Huawei. Many of their competitors are ramping up support for Windows Phone. The platform is expanding hardware support, making it easier for OEM's to use existing Android handsets for Windows Phone, they have dropped licensing for devices that are 8 inches or smaller and Huawei could save money for Android patent royalties to Microsoft for each Windows Phone that they sell. I suspect that this is a soft hold on their part.

15. DogeShibe

Posts: 1121; Member since: Jan 10, 2014

Let's see what the future holds...

12. GreekGeek

Posts: 1276; Member since: Mar 22, 2014

He knew We knew Hardly a surprise

10. Ashoaib

Posts: 3309; Member since: Nov 15, 2013

Tizen is dead bcoz samsung is reluctant to launch devices with it... when original manufacturer is reluctant how other companies can experiment with it?

13. GreekGeek

Posts: 1276; Member since: Mar 22, 2014

They haven't learned from the BADA mistake. Tizen is just an Androidized version of this dead OS.

14. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

The king of Android is struggling to.keep its leading position due to the onslaught of great value devices from smaller Chinese companies. Putting R & D on Tizen and producing its device would not counter the value Xiaomi represents. Samsung need new interesting feature not available in cheaper smartphone. Or discover another niche market and grow from there.

38. inlinev

Posts: 16; Member since: Feb 02, 2014

If Samsung is reluctant to launch it, it could be related to their membership in the Open Handset Alliance. Google has a tremendous amount of leverage over their OEM partners. In theory, that is limited to Google's Android vs the AOSP source but when you consider services, Google can kill a competing OS by restricting their services access for that platform. That is exactly what they have done with Windows Phone for years. If Samsung were to push for Tizen using competing services, they risk their membership in the OHA and their cash cow. If that isn't anti-competitive, it certainly qualifies as bad karma. If I were Samsung, I'd tell Google to shove it and I'd go all in with several competing platforms. Google seems to avoid the stigma or being the bad guy despite their questionable practices.

58. juandante

Posts: 679; Member since: Apr 23, 2013

Seriously, I don't care if Google can kill competing OS. What I care about is that I don't have any Microsoft BS in my mobile. That is the consequence of using Trojan Horses and badly closed source code.

8. itsdeepak4u2000

Posts: 3718; Member since: Nov 03, 2012

Android is a very modern and smart OS. MS was so lazy with their execution with no apps and games in WP store. Poor Nokia. And iOS is a very good feature phone OS. ;) I think Sammy did the mistake with Bada, so having same fate for Tizen also even before launch. As it has very tough competition from upcoming Android One and new entrants like Firefox OS, Ubuntu, etc. Poor Sammy.

17. freebee269

Posts: 543; Member since: Aug 10, 2012

Anyone who says windows phone has no apps or games is just trolling. It has over 300k. That's a lot more than no apps or games. It also has most of the popular apps. What it lacks in is the user specific apps like your favorite bank or favorite music streaming service, etc. But to say it has no apps or games is completely false.

21. Adrian38

Posts: 142; Member since: Nov 05, 2012

I think when people say "WP has no apps" they mean that they have no apps that people care about Lol Yeah, they have 300k+ apps but they don't have some very important apps. And without those apps, they'll never come close to being a serious contender.

24. inlinev

Posts: 16; Member since: Feb 02, 2014

Such as?

44. Cicero

Posts: 1164; Member since: Jan 22, 2014

Take a look at wpstore. And you will find a lot of craps apps from the home page. And I am talking about faking apps with no value which trying to confuse you. Also having bank, carrier, music, video, travel and your choice of the rest favorites (Google made apps or another one) is a must of using a today phone/os. Why to carry wp heights. Choose what 8s fitting you now. When wp will be ready I will give it a try. I tried already and neh.

27. ManusImperceptus

Posts: 724; Member since: Jun 10, 2014

They lack a handful of important apps, mainly Google's. An example: Every major Danish bank has a WP app...

33. inlinev

Posts: 16; Member since: Feb 02, 2014

I don't think that Google will ever release their apps for Windows Phone. The question is whether they need to be. I'm sure they would top the charts if they did but it would also open the door to more competition. I recently closed my Google account because of this. But frankly, I wasn't using their services. Many people may believe that they are indispensible but in reality, the competition has matched or beaten their quality in key areas like search. By trying to mitigate competing platforms, they are actually encouraging competition and providing the proof that they aren't the only game in town. It's kind-of interesting when you think about the implications.

20. Liveitup

Posts: 1798; Member since: Jan 07, 2014

Android aesthetically is trying to look modern with its Material UI which clearly takes inspiration Microsoft's modern UI. WP app gap is closing though ill agree with you Microsoft is complete s**t when it comes to execution, hate there marketing , besides what you put in to marketing an OS is what you get out Heuwei basically really a couple WP and they talk BS with putting any backing into the OS. WP has tons of potential and have inspired both Android and iOS in UI design and certain feature, MS just really sucks at marketing, so can't expect OEM's to put in the effort when the owners dont. If you look at where WP is gaining ground like the UK where its above 8% etc they promote WP.

34. AfterShock

Posts: 4147; Member since: Nov 02, 2012

Ahem... http://files.gendo.nl/images/AOL-Metro.jpg Before it was fastest growing OS, then it was another thing now its copying wp for the flat look, No one on this planet cares for WP, especially enough to copy a dead dying platform. Spain I believe it is, the only place in the world where its above 4%, off the frigging charts. It close to non existent.

48. ManusImperceptus

Posts: 724; Member since: Jun 10, 2014

"No one on this planet cares for WP" Ignorant comment. I like the platform, so I care. There, you've just been proven wrong.

49. AfterShock

Posts: 4147; Member since: Nov 02, 2012

Technicality of minute numbers, let me adjust that for you.. No OEM on this planet really wants to make WP. (without being paid to make it)

22. Ibrahim.hashmi

Posts: 3; Member since: Aug 22, 2014

almost all comonly used apps are availble on wp .. After 8.1 update wp becomes a totally baked os

6. xperiaDROID

Posts: 5629; Member since: Mar 08, 2013

The Yu has spoken the truth. Tizen is indeed doomed, it's not because I look down on it, it's just that it's not ready to be on smartphones and tablets yet, take Samsung Z for example. Tizen is only suitable for smartwatches for now. Microsoft'ed Nokia is the biggest competitor on the Windows Phone market, the others should just stick to Android, there's no way to beat the Microsoft'ed Nokia in Windows Phone. No one even buys a Windows Phone from Huawei, so there's a point for that.

5. Felix_Gatto

Posts: 942; Member since: Jul 03, 2013

We should give a warm welcome to the fresh platform such as Tizen, Firefox OS, Sailfish, and Ubuntu Touch. In the other side WP is an old contender because it exists since 4 years ago and still can't bring a good profit.

9. xperiaDROID

Posts: 5629; Member since: Mar 08, 2013

A warm welcome is a must to the fresh platforms, but Tizen is really not ready for the smartphone and tablets yet, even Samsung Z is scrapped.

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