"Without competitive products, it is impossible for Huawei to achieve such success." [1
9659005] Whatever nationalist boost Huawei may receive, however, it is unlikely to do much to change their fortunes in China. Huawei has been on an upward track in their home market for a while and had an astounding 2018 – largely at the expense of Apple and Xiaomi, among other competitors – there can be no serious analysis of the company without acknowledging that outside the United States is there is a tremendously successful consumer brand, as well as a highly advanced technological force.
"This [nationalist] feeling can help Huaweis's total m China's best-selling image, but without competitive products, is impossible for Huawei to achieve such success in their home market in 2018, says Canalys Shanghai analyst Mo Jia. "I think the most important factor is Huawei's aggressive technological innovation, bringing it to the same level as the top two smartphone giants, Samsung and Apple, in the global market." Counterpoint Research Director James Yan agrees and says "I don't think it's an important factor in purchasing decisions," instead, we call strong photo features, battery life and performance from Huawei's own Kirin processors as major reasons why Chinese consumers choose the brand.
Describe the Huawei Mate 20 Pro as "The Best Phone America Can't Get,"
Verge s Vlad Savov cited his "big battery, slick design and a superb processor, limited by poor software and international relations. "The software is not a problem for most Chinese users, nor is the international relationship a negative for them either. In that light, it is not surprising that Huawei continues to establish itself as a top-of-the-range phone manufacturer in the world's largest market.
Canalys puts Huawei's share of the Chinese smartphone market at 27 percent, an increase of 7 percentage points on an annual basis, while the company's shipments are said to have grown by 16 percent. This is particularly impressive given the overall stagnant state of the China telephone market, with IDC yesterday, reporting a 10.5 percent contraction in shipments. Oppo and Xiaomi managed to increase their share, for example, but sold total shipments decline from year to year. The market is maturing and consolidating, with Huawei the biggest benefactor yet.
"[Huawei’s] attempts to strengthen the brand image through technological innovations [has] seen strong progress," said Jia. "It has significantly helped Huawei's high quality performance with the P and Mate series, most importantly. The halo effect also contributed to Huawei's overall brand image, thus becoming an attractive and reliable brand in China. In addition, Huawei is the only brand that can compete with Apple for the brand image in China's high-end room after Samsung's failure. "Samsung's share of the Chinese market shrank to a single percent in the quarter 2017, according to Counterpoint.
That's not to say that Huawei is necessarily up with Apple when it comes to high end branding, even within China. The company sells phones across of all prize points, aided by the older brand Honor – which Yan says constitutes 45 percent of Huaya's shipments – so it cannot be described as exclusive. IDCs Kaur tells
The Verge that "its flagship series is considered to be a high -and enough, but [it’s] too early to say that they have the "ambitious" status the iPhones have seen in the good days. " Photo by Vlad Savov / The Verge
But Apple had a catastrophic 2018 in China, with IDC estimated that a 11.7 percent decline in sales was greater than the overall market downturn, the market share was flat at around 9 percent, the only one of China's top five phone brands that could not get more share in 2018. "The ultra high The giants limit the audience of XS and XS Max, as it is difficult to place over 8000 yuan smartphone as a mass market device, Jia says. "XR was originally put on 6,499 yuan (~ $ 950), which is around the price of an advanced Android device [like] Samsung's Note 9 or Huawei's Mate 20 Pro. Although China's market has become one of those The biggest high-end smartphone markets, the positioning (high-price entry iPhone) failed in XR to secure the volume game. "
There are other reasons for Apple's poor performance over Huawei. Kaur quotes the higher prices, of course, says that Huawei's flagship has "filled the gap" again as other brands go higher, but other factors include "lower telco subsidies (which have been the case for a while), higher tech innovation from Chinese players who resonate With Chinese consumers, better branding of other brands, and a strong portfolio of flagships. The options in the market are much more now, as people are willing to consider, rather than paying a big prize. "
Market share is not everything Of course, and Huawei's phone business is not nearly as high-margin as Apple's. But Apple largely owed the iPhone and China for its unusually poor quarter last year, and it can't ignore the fact that it loses customers to Huawei in the region, especially as it continues to push the story that it's a service company. It also seems very possible that Huawei could take over Apple's position as the second largest global smartphone provider – just behind Samsung – throughout the year, even without the US market. (It actually happened in the second and third quarters of 2018.) Apple CEO Tim Cook blamed currency fluctuations for the high price of iPhone in China, and the company will reset prices for affected regions. "We'll see how it works for us," Cook told NPR yesterday.
It may be difficult for Huawei to replicate its market share in China in 2019, but because much of its recent performance has been at the expense of smaller players. "Huawei's win was mostly from the smaller suppliers such as Gionee and Meizu in China, as the proportion of smaller top five suppliers has dropped from 27% in 2017 to 12% in 2018," says Jia. for Huawei to take part as the competition will remain largely among the top five providers, and Oppo, Vivo, Xiaomi and Apple have stable user bases. It will be extremely difficult for any supplier to share with others. "
" "The big Chinese players, including Huawei, have grown at the expense of some of the smaller domestic players in a market where smartphone penetration has already come quite high," agrees Kaur. "There may be some further consolidation in China." The market, which can help players such as Huawei further consolidate its share in the market. "Counterpoint's Yan predicts that Huawei's Chinese market share will grow due to a lack of" outstanding highlights "from competitors over the next year.
Huawei has emerged as an inarguably strong competitor
Lately, Huawei has global ambitions, and the intercontinental controversy around it is not likely to help it in the long run – although it turns out to be a small patriotism Huawei's success in some of the Western markets has improved its credibility from home, and growth in China has helped create growth also outside of China, "says Kaur. "All of this has also helped Huawei to run R&D and improve its brand image, and running this can be challenging if international slowdowns and economic challenges arise."
The decision to buy a particular phone can be intensely personal and there are countless factors that influence it. What is clear is that in China, and many other countries in the world outside the United States, there are many strong reasons why customers choose Huawei devices. Of course, the popularity of consumer products will not shift the position of any government, such as the national security issues that arise from letting a Chinese company have a dubious story of building 5G infrastructure. But it's worth reflecting on how and why Huawei is able to beat companies like Apple in China. But a lot of patriotism can come to play, it's less of a factor than the reality that Huawei has emerged as an inarguably strong competitor at all levels of the market.