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Devices/smartphones

MWC 2011: Huawei Is Not Low Cost!

8:25 AM -- BARCELONA -- Mobile World Congress 2011 -- Huawei Technologies Co. Ltd. appears to be working hard to ditch its reputation in the mobile device market as the low-cost option. The vendor announced new tablets and smartphones in Barcelona this week without pricing details, but don't expect them to be cheap!

During a booth tour Wednesday, Alix Khadiri, a product marketing manager from France, was adamant that being low cost is not Huawei's strategy. Khadiri, who focuses on retail distribution, said the Ideos S7 tablet costs between US$250 and $300 at Best Buy, nearly half of what some tablets on the market cost, but he insisted that's not inexpensive. He's seen cheaper.

Khadiri wants to dispel the notion that Chinese vendors make low-cost wares, because lower prices are typically associated with low quality. Instead, he suggested the strength of Huawei's partners, including Google (Nasdaq: GOOG) and Qualcomm Inc. (Nasdaq: QCOM), its technology focus and innovation as other ways to define its strategy. Huawei wants to gain carriers' and customers' trust and prove it's in it for the long haul.

It's understandable that Huawei is trying to distance itself from images of low-quality devices, but there's no denying that it is cheaper than most of its competitors. For reasons Light Reading Mobile has outlined in the past, that may not be a bad thing -- at least for now while it breaks into the U.S. and Western Europe. (See ZTE Sees Mobile Growth in the US & Europe.)

If it's not going to market itself as a good value (not low-cost) brand, than it will need a clearer differentiator to emphasize. Right now, there's not much besides that price tag to set its tablets and smartphones apart.

— Sarah Reedy, Senior Reporter, Light Reading Mobile

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shygye75 12/5/2012 | 5:12:44 PM
re: MWC 2011: Huawei Is Not Low Cost!

It will take Huawei some time and considerable marketing effort to change how the industry views it. Heavy Reading's market perception studies over the years have shown that once a brand identity takes hold, it is very slow to change. Unless, of course, your brand happens to be Tiger Woods.

yeahright 12/5/2012 | 5:12:42 PM
re: MWC 2011: Huawei Is Not Low Cost!

Its not just time and marketing efforts. Huawei is low cost for a real good reason !!. If it can innovate or offer products what market needs ahead of others, yes it can demand a higher price for its products. If all it can do is, come up with the same products what North American companies already have, the only angle they have is to play the price game which makes them a cheap player. Good for Huawei, global economy forced the big guys not to invest in custome silicon but use merchant silicon, which enable them to procure the same silicon valley technology (for cheaper cost that what (for example) cisco pays for) and come up with a similar product with more or less of ok quality. Yeah, the software may crash more often or the menu in their management system may have spelling errors ...who cares in India or Latin America or Eastern Europe, if it is half the price. 

Garci 12/5/2012 | 5:12:34 PM
re: MWC 2011: Huawei Is Not Low Cost!

I think the big difference here is HW trying to appear as "not low cost" for consumers... (which lets be honest, are not LR readers). Carriers are a complete different ball-game and I'm sure appreciate low-cost tech that works...

[email protected] 12/5/2012 | 5:12:31 PM
re: MWC 2011: Huawei Is Not Low Cost!

Huawei is not low-cost market player.

spc_markl 12/5/2012 | 5:12:29 PM
re: MWC 2011: Huawei Is Not Low Cost!

neyo,


The gentleman from Huawei would be better off just remaining silent on the cost issue.


Mark

neyo 12/5/2012 | 5:12:29 PM
re: MWC 2011: Huawei Is Not Low Cost!

I would agree that Huawei is not a low cost market player.


In fact it is a lowest cost market player. No matter how much you reduce your cost, Huawei  can go lower.


 

[email protected] 12/5/2012 | 5:12:27 PM
re: MWC 2011: Huawei Is Not Low Cost!

Mark,


You want me reveal company's price list? :)))


Please remove blinders from your eyes, and stop follow "Chinese means cheap" paradigm. Sometimes it's true, sometimes not.


BR


Alexei

Stefan Sip 12/5/2012 | 5:12:25 PM
re: MWC 2011: Huawei Is Not Low Cost!

Whatever Huawei is or is not, their market share and revenue growth speak for itself.  Huawei is simply a value play that a majority of operators have not ignored.  As a result, the world population as whole, especially in developing countries, have benefitted from. 

[email protected] 12/5/2012 | 5:11:58 PM
re: MWC 2011: Huawei Is Not Low Cost! <div>


Mark


Also read this:


http://business.globaltimes.cn/industries/2010-01/501891.html

</div>
[email protected] 12/5/2012 | 5:11:58 PM
re: MWC 2011: Huawei Is Not Low Cost!

Neyo


read this:


Although TeliaSonera did not disclose the financial details, its CTO Lars Klasson said that Huawei is a good partner and it lost finally because the other two offer better commercial terms, which usually means a lower prices in telecom industry parlance.


http://business.globaltimes.cn/industries/2010-01/501891.html

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