Huawei to Favor High-End Phones Moving Forward
Jan 28, 2015, 8:36 AM by Eric M. Zeman
Huawei recently said it wants to sell more high-end smartphones and fewer entry-level devices in a bid to increase margins. The company shipped 75 million smartphones during 2014 and wants to improve that number to 100 million in 2015. "If we sold more low-end phones, we could even double our shipments … but in the low-end market there is no margin," said CEO Richard Yu. "We are giving up the low end of the market. Many vendors are suffering." The company has seen measured success in its home market of China with mid-range devices like the Honor series and its high-end Mate 7. Huawei wants to increase sales of devices like these. It's not clear if such a strategy will work, however, as HTC and Samsung both lost ground to rivals after making similar strategic changes. Most of the devices Huawei sells in the U.S. are entry-level and mid-range.
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