It’s not even been a month since Apple became the world’s first trillion dollar company (publicly). It achieves that feat mostly because of iPhones, but one company beats Apple at its own game. For over the period of 7 years Samsung and Apple are the number one and two largest smartphone manufacturers, but Huawei dethrones Apple to 3rd position and took its 2nd position. Here’s why it’s not something that to take lightly.
While Samsung shipped around 70 million handsets Huawei shipped around 48 million. And the thing that surprised everyone is Huawei did it without having the U.S Market. Because of some issues with the American Government, Huawei can’t sell their phones in the United States because the Government there alleged Huawei as Spy who gives their people data to the Chinese government. The US is the world’s biggest market when it comes to smartphones. So, lacking such a crucial demographic will surely hurt their sales and expansion. That being said Huawei is also not happy with that, and they can’t sell their phones with a carrier which is a huge bummer in the US market.
Before 4 years, when Huawei claims their goal is to be the world’s largest phone manufacturer everyone laughed, not a single person take it seriously. All though it is just another Chinese company, but they proved them wrong. They are not far away from their goal. Statistics don’t lie.
Here’s how they did it:
1. Creating their own Ecosystem
Huawei did everything right, firstly they build their own user interface. In the smartphone world, Apart from Apple everyone is using Android. But if Huawei is just another phone brand that uses Android it doesn’t stand out, so they created EMUI. which is a short form for Emotion User Interface? It is their version of Android with many features and their own apps. Some may like it, some may hate it, but it makes them stand out.
2. Investing in R&D
Apple makes its own processors, and even though Samsung uses Qualcomm chips they too manufacture their own processors. So Huawei understands if they have to get huge profits instead of buying components from others they have to make their own. They started manufacturing Kirin Socs. If we take Samsung’s first gen processors they are a failure but it’s not the same case with Huawei. Kirin chipsets are doing well from their first generation and they have come a long way, Now they are launching the world’s first 7nm processor called Kirin 980 in the coming October.
If we take other Chinese manufacturers it is not the case, they completely rely on Qualcomm and Mediatek chipsets for their phones. There is nothing wrong with it but those chipsets, especially Qualcomm’s are on the higher side and it will cost the company a lot.
Another thing where Huawei smartphones stand out is in terms of design. They will design their phones to turn heads. Their phones always look premium and with the good build quality. An honor phone in the 10k-15k segment looks like it worth 25-30k, whereas their phone in the 25-30k segment looks like it costs 50-60k. They are also durable and last very long in general.
4. Marketing Strategy
As Huawei is a premium phone maker, it launches its sub-brand called Honor. There is much reason for this. Firstly Huawei sounds very Chinese, so they went with a global name, and Honor mostly sells online, so they can price their phones aggressively and can even capture the low end to mid-range segment market.
5. Wide Range of Products
Huawei didn’t get stopped at Mobile phones, they also manufacture a wide range of products including Smartwatches, Smart bands, Phone cases, Routers, Cables, chargers and more. This gives them an edge over the competition and is helping them to become what they are today.
Now Huawei is in 2nd place, maybe if it is not for the limitations of Android they would’ve been in No.1 position. But still the game isn’t over, They still have a long way to go to dethrone Samsung at No.1 spot. All the best Huawei.
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