(With a great curiosity of the cell phone market, this time, After Apple and Xiaomi, I want to focus on Huawei. I am so curious of what would happen next in this battle field with an intense competition.)
A report that Huawei sold more smartphones in the last quarter of 2012 than either Nokia, HTC or RIM (the company that has just renamed itself BlackBerry) raised people’s eyebrows this year[1]. Also in this year, Huawei overtook Sweden’s Ericsson to become the world’s largest telecoms-equipment-maker[2]
Huawei Technologies Co. Ltd. is a Chinese multinational networking and telecommunications equipment and services company headquartered in Shenzhen, Guangdong. It is the largest telecommunications equipment maker in the world.[3]
Why can Huawei develop so fast and operate so successfully?
After carefully analysis, I notice that the main reason is—Cost Leadership.
Huawei succeeded in cost leadership. Comparing to Apple, Samsung, Nokia etc. Huawei’s cell phones are rather cheap (the ones with big touch screen are around $400[4]). By locating its manufactory and its services company in China, Huawei enjoys the wide labor market and lower cost of nature resources in developing country. Those things play really important role in cutting the expenditure of the industry.
References:
[1]Huawei clear as mud. (2013, Feb 2). The Economics. Retrieved from http://www.economist.com/news/business/21571180-chinese-company-sells-ever-more-smartphones-and-opens-up-little-clear-mud?zid=292&ah=165a5788fdb0726c01b1374d8e1ea285
[2]Chinese multinationals who’s afraid of huawei?. (2012, Aug 4). The Economics.Retrieved from http://www.economist.com/node/21559922
[3]Huawei. (n.d.). Retrieved from http://en.wikipedia.org/wiki/Huawei
[4] the price of the cell phone: http://consumer.huawei.com/en/mobile-phones/index.htm