Thursday, April 18, 2024

Huawei planning to take on the U.S. market

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Huawei has managed to stake a claim as China’s second largest smartphone manufacturer, yet it is a name most U.S. consumers have probably never heard. If they are aware of Huawei, there are decent odds it stemmed from action by Congress a couple years ago to label Huawei a national security threat amidst concerns they would use network hardware for spying purposes. Despite that incident and the potential stigma of being seen as a producer of cheap Chinese goods, Huawei is indicating they have plans to step up marketing and try to make a push into the U.S. market during 2015.

One clue to the company’s plans to expand may be seen in their announcement of the Huawei Watch at MWC 2015 this week. As part of the reveal of their entrant into the wearables market, Huawei included the U.S. in the list of the initial 20 markets where the device will be sold. Huawei also recently took out a billboard in Times Square touting the Honor 6 Plus smartphone, a move Huawei’s U.S. spokesman Bill Plummer described as “a sing of things to come.” Among the marketing avenues available for Huawei in the U.S., one might be a tie-in with a sports team similar to their sponsorship of the Arsenal soccer team in London, cricket teams in India and rugby clubs in Australia.

For the short term at least, it appears Huawei may have to focus on advertising efforts that are aimed directly at potential buyers. The majority of smartphones sold in the U.S. are sold through the major carriers, none of which carry Huawei devices and may be reluctant to add them to their portfolio. The carriers seem to favor major brands like Samsung, Apple, and HTC. Even a company like Sony has been challenged to get their devices carried by the big four.

One path Huawei could take would be one employed by ZTE, which started striking deals with lower-tier carriers like Boost to make their devices available in the prepaid space. That might be a way to get a foot in the door. Eventually Huawei will want to get their higher end devices into the market though, which would probably be welcomed by some buyers who know Huawei has a reputation for producing some attractive higher-end handsets.

Are you interested in seeing Huawei enter the U.S. market?

source: Reuters

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