Huawei Ups Smartphone Target

6:05 AM -- Huawei Technologies Co. Ltd. has upped its smartphone sales target for 2011 to 20 million from 12-15 million, reports Reuters, a projection that's in keeping with its new aggressive "Cloud-Pipe-Device" growth strategy. (See Huawei Aims for $100B Annual Revenues.)

In 2010 Huawei shipped about 3 million smartphones, so its new 2011 target represents a massive leap for the Chinese vendor. But that target is matched by an aggressive product launch schedule that should see up to 10 new Android-based smartphone models launched during 2011, with Pyramid Research analyst Stela Bokun expecting Huawei and ZTE Corp. (Shenzhen: 000063; Hong Kong: 0763) to gain traction in developed markets with low-cost smartphone models. (See Smartphones to Account for 53% of Sales.)

The vendor has already launched a number of IDEOS smartphone models this year and has unveiled its MediaPad tablet. (See Huawei's MediaPad Unveiled, Huawei To Launch Tablets in Q3, Huawei Offers IDEOS in India, Huawei Issues Four Smart Devices and Huawei, ZTE: Global Devices With Nice Prices.)

— Ray Le Maistre, International Managing Editor, Light Reading

joset01 12/5/2012 | 5:00:06 PM
re: Huawei Ups Smartphone Target

What percentage will be Android phones?

stelabokun 12/5/2012 | 5:00:05 PM
re: Huawei Ups Smartphone Target

Here is a bit of local flavor from Africa. The success that Huawei had with IDEOS in Kenya this year has been unbelievable. After they started offering IDEOS with Safaricom, the handset made it to top 10 best selling mobile handsets in the country in just a couple of months. The price is at around $100 and it's selling as well as if it were a $15 handset. I guess the thing that helped a bit is that Safaricom holds around 75% of the Kenyan mobile market – but still, at that price point (which is very low for European or NA context, but quite significant in the Kenyan context) and selling so well… At Pyramid, we believe that the segment that this model appeals to is very big and carries much potential, which will reflect positively to both the Huawei’s and Android’s standing in the region in the short run. Especially in Eastern Africa, low cost smartphones, such as IDEOS, are becoming more acknowledged and similar expectations exist for countries like Ghana and Nigeria in WECA /this has to do in part with low PC penetration in these countries; here smartphone is often the only connectivity device/.

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