huawei, the rising Chinese tech giant, wants to become the number one smartphone maker in the world. At the moment, the company is number 3 in the world with around 20 percent market share, but that’s not enough.
Now, when one looks at Huawei, they see a Chinese company with several products, and resources to push itself to the top. However, that’s partly true. Huawei does have quite a lot of products on the market, but it’s not making enough profit to have unlimited resources.
This is due to the focus on the mid-tier section of the smartphone market.
Today, the plan is to focus more on the high-end spectrum in a bid to boost its profit margins. The low-end doesn’t deliver profits, and profit from the mid-range market is minuscule.
As it stands right now, folks in developing nations will have to spend big in the future if they want to own a smartphone from Huawei. The company is at a point right now where it feels it needs to compete more effectively with the likes of Samsung and Apple.
Time to make big in the American market
The company is quite the powerhouse in China and other parts of Asia. However, when it comes to Europe and America, Huawei is not at its best. Competition in those markets is strong due to the presence of Samsung and Apple.
Furthermore, it’s clear that Americans and Europeans tend to drift more towards high-end devices, and that’s the focus of the Chinese giant at this time.
Huawei will have no chance of taking the number one sport unless it can conquer the United States. It’s going to be a rough ride since Apple’s dominance of that market is quite strong.
Nonetheless, the Xbox 360 was dominant in the United States for eight years, but the Japanese company, Sony, came along with the PlayStation 4 to take the throne.
With that in mind, it’s very much possible for a non-U.S. company to become number one smartphone maker in North America. Still, being a Chinese company, Huawei might have a more difficult time due to the current political climate.
Threat from Xiaomi
There’s another Chinese company threatening to take the tech world by storm, and it’s called Xiaomi. Like Huawei, this company has dabbled in different aspects of the tech industry but is primarily a smartphone manufacturer.
Xiaomi has been making a name for itself worldwide, especially with the release of the Mi Robotic Vacuum. If Huawei doesn’t get itself together, the chances of Xiaomi becoming the number one smartphone maker in China and possibly the world will become a reality.
