Industry News

Huawei's Entry Into The U.S. Market Or Its Legacy Carrier AT & T Has Given Up Co-operation



AT & T Bright red Huawei into the United States market again?

If the rumor is true, Huawei will crack down on the future development of mobile phones.

1 cheap iphone 5 screen protector.jpg

The Wall Street Journal reported in a January 9 Beijing release that US operator AT & T has abandoned its partnership with Huawei to sell smartphones in the United States.

The report quoted people familiar with the matter as saying that AT & T terminated the cooperation. The report did not give the specific reasons for this cooperation abortion.

In response, Huawei did not give a positive response, but said to interface reporters: "In the past five years, Huawei has proven its strength by launching high-end products in the global and US markets. On Tuesday, Huawei will release to the U.S. market New products and specific listing information, then we will share more information. "

According to estimates from the outside world, Huawei will officially announce the entry of its products into the U.S. market during CES. As the US handset market is more of an operator-led market with carrier channels accounting for about 90% of total shipments in the United States, entering local brands requires more cooperation with carriers in more cases.

Tencent Technology had earlier burst, Huawei and the United States will be the second largest operator AT & T reached an exclusive cooperation by the latter in the United States exclusive sales of Huawei Mate 10 this a mobile phone products, the fastest in the first quarter, the United States users can Buy the contract version of Huawei high-end mobile phones; In addition, P series of mobile phones will also gradually enter the United States market.

It is noteworthy that, Huawei has not conducted a series of rumors positive response. According to information obtained from news correspondents at the interface, Huawei has always had no formal details of its cooperation with the outside world. One of the reasons for this is that they are still under pressure from all parties in the U.S. market.

In 2012, the US Congress once published a report that expressed concern about the security of Huawei equipment. In 2013, when the United States President Barack Obama signed a law requiring relevant U.S. government departments not to buy information technology systems, especially IT equipment from China. This basically locks up the possibility that Huawei will sell network equipment to the U.S. market. Huawei's series of acquisitions in the U.S. market eventually ended in failure.

Previously, Huawei also tried to sell mobile phones in the US market, but they could only choose to cooperate with the e-commerce channels such as Amazon, so the sales volume was not satisfactory. According to market research firm Canalys, in the third quarter of 2016, Huawei had a market share of only 0.4% in the US smartphone market.

In the speech of New Year 2018, Yu Chengdong, CEO of Huawei's consumer business, disclosed that Huawei's sales revenue of smartphones in 2017 was around Rmb260bn, an increase of about 30% over the same period of last year. Huawei and Glory brands shipped 153 million sets of smartphones in a year. Tencent Technology reported that Huawei's sales target in 2018 is 200 million units.

In an interview with foreign media, Yu Chengdong also mentioned that he hopes Huawei can become the world's second-largest handset brand in the next two years and will be the No. 1 in the world within five years. In the case of a slowdown in the domestic market, it is foreseeable that the U.S. market will assume an important growth task for Huawei in the future. Perhaps, on Tuesday, U.S. time, Huawei will provide a formal answer to various issues such as entering the U.S. market.

2 buy tempered glass screen protector iphone 6.jpg

Foreign media AndroidAuthority said that China's Android OEM manufacturers are rapidly rising, and hit the United States from the volume. In this regard, Huawei is regarded as one of the most influential brands, "the US market is likely to undergo changes."

However, foreign media also pointed out that despite the potential of Huawei handsets, there are still some obstacles to be overcome, including how to gain deeper consumer trust in the United States, expand limited channels and win in saturated markets. Foreign media that Huawei's advertising is still not enough, not easy to obtain the phone in retail channels, in most cases must be from Amazon, BestBuy and other e-commerce sites to buy, Huawei's mobile phone has limitations.

Reported that one plus model successfully hit the market. Even its price increases will still be considered a relatively cost-effective option. And when consumers put a plus 5T and Samsung Note 8 together, you will find that their specifications are similar, which is why some people are willing to choose to try one plus cell phone.

Foreign media also mentioned the father of Andrews published Essential phone, although it is not as good as expected sales, the phone is still affecting the market. In addition to its partnership with telecom operator Sprint, Essential Design is the key to its acquisition by consumers. Foreign media that its quite textured technology and borderless design, making it one of the most attractive mobile phone on the market. After several updates and price cuts, the Essential phone has become a very competitive phone option.

Huawei can learn one of the models and find their own way to the United States? The price of Mate 10 Pro has not yet been announced, but Huawei's chief executive Yu Chengdong recently said the phone will be "competitive" in the United States.

3 phone case with glass screen.jpg

In design, foreign media praised Mate 10 Pro's design is quite sharp. On the price side, what exactly is Mate 10 Pro pricing in the United States cheaper than Apple's iPhone X and Samsung Galaxy Note 8? Or cheaper than this, like the Samsung Galaxy S8 and LG V30? Although the price is unknown at the moment, it certainly will affect the purchase intention.

Foreign media pointed out that Huawei's mobile phone design is good, fast, affordable. As the world's third-largest maker of handsets, the company is on a solid financial foundation. Whether these positive factors can translate into Huawei's success in the U.S. market?

Foreign media think, as long as Huawei is serious this time, no matter under what circumstances, will be successful in the United States. However, it can not rely solely on online sales for success, and Huawei will need to release multiple handsets and launch advertising campaigns in physical stores. "If Huawei wants to stay, it needs to behave as it has always existed here." That is, Huawei must open more channels to make it a more selective and easy-to-start brand of handsets.