Huawei Technologies Co. will use high-quality, mid-priced devices and online distribution as it targets to capture the top spot in China’s smartphone market within three years.
The Honor line of phones introduced this year is aimed at young consumers with a focus on online marketing, sales and service, Jeff Liu, president of Huawei’s Honor line, said in an interview in Beijing. He was speaking ahead of the unveiling today of the Honor 6 Plus, the latest device in the series.
Huawei, founded in 1987 and China’s largest maker of equipment for phone networks, has been surpassed in smartphones by younger, more nimble local competitors like four-year-old Xiaomi Corp. Xiaomi’s low-cost, online model propelled it to the top of China’s smartphone market, the world’s largest, in the third quarter, while Huawei was tied for fourth place in the period, according to researcher Canalys.
“Many Internet based brands are coming so we need a new brand to face the competition,” Liu said. The goal in China is “first we’ll become number one. Then, globally, our target in three years is to be at least a top-two smartphone vendor.”
Huawei ranked fifth in global smartphone shipments during the third quarter, with 5.1 percent share, according to researcher Strategy Analytics. Xiaomi was third worldwide with 5.6 percent, trailing only Samsung Electronics Co. and Apple Inc. (AAPL), Strategy Analytics reported in October.
The Honor 6 Plus with 5.5-inch display will sell in China for about 2,500 yuan ($404), Liu said. Xiaomi sells its flagship Mi4 with a 5-inch display in China for 1,999 yuan.
“The market is so dynamic, competition is so tough,” Liu said. “We have to make sure we do not make mistakes in the market, and be cautious.”
To contact Bloomberg News staff for this story: Edmond Lococo in Beijing at elococo@bloomberg.net; Christine Hah in Beijing at chah@bloomberg.net
To contact the editors responsible for this story: Michael Tighe at mtighe4@bloomberg.net Suresh Seshadri, Subramaniam Sharma
