Recently, according to sources, Huawei founder Ren Zhengfei said in the company's internal report, asked Huawei to pay attention to low-end mobile phone.Yong Zhengfei said, 'the world's ninety percent are poor, friends low-end mobile phone poor Market, do not despise them. Huawei have to do low-end machine, our old product precipitation may be done low-end machine '.
Huawei's current strategy is to enhance the brand premium, unswervingly to the high-end market forward, and high-end mobile phone shipments have been steady growth.After the Huawei consumer business CEO Yu Chengdong said that the first three quarters of Huawei mobile shipments reached 112 million units, shipments grew 19% year on year, in the overall shipments beyond the Apple, the current Huawei mate10 again in the positive and Apple Samsung high-end flagship, why at this juncture, Huawei has said to be back to the attention The low-end market?
We know that Huawei itself has been in the high school low-end market, has been the layout, Huawei Chang enjoy, Mai Mai series is a typical low-end Huawei, but Huawei is more emphasis on consumer business to profit priority, so high-end market Huawei is currently to overcome the main market.While Huawei has to pay attention to the low-end market, but also the current domestic mobile phones are to enhance their brand premium, to obtain more profits, most of the low-end cost-effective to give up the strategy to go In the high-end market, low-end market almost showed a vacuum, manufacturers were ignored.
And because of this, has been in the low-end market layout closely millet just once again harvested the low-end market dividend, millet shipments in this year's counterattack is an example of the whole 2016, millet sales fell 36% Once that millet cost-effective strategy has failed, in order to avoid repeating millet mistakes, all manufacturers have to enter the high-end market.
However, in the second quarter of 2017, millet sales are rapidly counterattack, the third quarter of 2017 millet is known as a single month shipping 10 million.One reason is millet in the low-end market, red rice brand shipments in the high-speed growth July Ministry of Industry issued a monthly mobile phone sales charts show that the red rice 4X ranked second in the domestic market sales.It can be seen in the Huawei OV in the collective force of the mid-market when the millet is almost completely harvested in the low-end market.
Another reason is that millet in the Indian market continues to advance in the Indian market, its red rice note4 has become the highest sales of mobile phone style, millet executives had said the Indian market, the monthly shipments reached a new record of 4 million. Millet cheap, cost-effective strategy just to meet the Indian market conditions, and this also caused some of Huawei's vigilance, while Huawei's anxiety here.
According to market research firm Counterpoint Research, Samsung Electronics is the leader in the smartphone market in India in the second quarter of 2017. Following Samsung Electronics is millet, vivo, OPPO and Lenovo (including Motorola business). Huawei shipped in the overall But the Indian smartphone market failed to be among the top five, it can not but say that Huawei is a big mistake because in today's global market, the Indian market is the fastest growing market for intelligent machines, while the Indian population Large base, the future market prospects are very large.
If the millet OV Samsung and other brands in the Indian market, long-term occupy the forefront of sales charts, will be at the brand level to seize the minds of Indian users, and with millet OV and other brands in the Indian market is getting deeper and deeper, Huawei to India's low-end market Breaking the Council will be more and more difficult, if the delay can not play sales, then the future of new growth space will be limited, therefore, Huawei stressed the importance of high-end market, it may be anxious that millet in the low-end market, especially the Indian market Of the rapid growth in the future shipments once again surpass Huawei, Huawei began to have a sense of crisis, and in this month, Huawei in India, the first release of positioning in the low-end market, the new machine, named Huawei glory 9i.
Because in the current high-end replacement market, people change the cycle more and more long, in order to continue to make breakthroughs in the high-end market, has become increasingly difficult, but for mobile phone manufacturers, the need for new growth With the saturation of the domestic low - end market, millet in the huge Indian market to find a good export, and Huawei 's current mobile phone market in India is not very good to open the situation, and has been stressed to enter the US market, Huawei, The development of the US market is also resistant.
Huawei Mate series in the domestic 4,000 yuan market has made some achievements, but let the low-end market regardless of the future may face a serious crisis.Although Huawei has always stressed the need to profit priority, but in fact, emphasizing the profit may be sacrificed at the expense of sales, Market, sales decline is a dangerous signal, especially for the supply chain and the operating system, the core technology and no control of the right to speak of domestic enterprises, once the sales decline, to the outside world is often the decline of the impression of the signal. The market, to talk about a potential in the last two years, the overall shipments of Huawei mobile phone is good, and now sales up, the moment how important to stabilize the upward momentum and re-attention to millet, re-understanding millet, and even re-learning millet, Huawei may be the current to do.
Many years ago, do not have high-end market brand HTC HTC had to give up the 'machine tactics' to shrink the model fought high-end, which is the industry know, but I believe that this market strategy mistakes not only led to its positioning is not clear, And the flow to the high-end market is bound to have an important strategic impact, that is, according to the "innovator's dilemma" in the book's view: 'low-end value network to form a competitive vacuum, and attract technology and cost structure and the value of the network more match Emerging enterprises to participate in the competition. "That is the current high-end HTC, the low-end value of the network vacuum is millet and other domestic mobile phone filled, and later HTC high-end weak to turn around to fight low-end, but the difficulty can be imagined.
Of course, Huawei, regardless of the strength of technology research and development and the supply chain and the brand are HTC can not be compared, but the truth is the same, if the low-end value of the network vacuum is filled with other manufacturers, the user mind is occupied, Huawei to attack again It is more difficult to go.
At present, many analysts believe that Huawei re-attention to the low-end market, millet Samsung in the low-end market share may be eroded, but in fact, Huawei is not so optimistic about the situation, after all, millet has low-end mobile phone price has been done It is difficult in the low-cost strategy to learn millet, millet in the low-end models experience and demand has a more thorough understanding, nurtured a certain degree of customer loyalty, and in-depth understanding of the Internet marketing, after all, low How to sell mobile phones, millet than Huawei more experienced, but also the most can not ignore a force.
Over the years, the industry has been Huawei millet on the standard, because it represents the mobile phone manufacturers different development models and routes, but with millet last year's decline, the industry more concerned about Huawei and OV contest, but from the current point of view, millet seems As well as the opportunity to comeback. Huawei and millet war, now far from the end of the time.