Beijing Morning News on February 26, Yu Chengdong, President of Consumer Technology, Huawei Technologies Co., Ltd., said at the MWC in Barcelona, Spain that the smart phone industry is bound to face consolidation due to the huge investment needed to remain competitive. In the long run, only a few companies Can make money.
Yu Chengdong said that in this industry with only a decade of history, companies with less than 10% market share are losing money.
Yu Chengdong
According to market research by IDC and Strategy Analytics, Huawei is the world's third-largest maker of smartphones, behind Samsung and Apple with a 10.2% market share in the fourth quarter of last year.
Yu Chengdong, speaking at a product launch before the Mobile World Congress, told reporters that in the future, only three or four vendors will survive, maybe less than four.
He said other smaller Chinese suppliers are consolidating and most will disappear because they do not have the resources to invest in research and development, marketing and branding and can not do so on a global scale.
'If you have a market share of less than 10%, you can not make a profit, at least 10% or more to break even, and earn more than 15% of the market,' he said.
He said Huawei's smartphone business grew by about 30% last year and will grow even faster this year with strong growth in January and the current month to date.
In his opinion, Huawei may become the second largest maker of smartphones in the next two years, sooner or later become the industry leader after his company just launched a new laptop and two Android tablets.
Unlike previous practices at the Mobile World Congress in Barcelona, Huawei is not deploying new flagship smartphones, but rather launches the new flagship smartphone P20 in a separate event in Paris next month, said Yu Chengdong, Will show the public the company's 'big and bold' innovation in camera technology.
The P20 phones will be comparable to the new Galaxy S9 phones from Samsung on Sunday, and Apple's iPhone X.
Later this year, Huawei will begin to roll out the next generation of mobile networks in several major markets, along with 5G versions of consumer network routers and self-developed handset chipsets.
Yu Chengdong said Huawei will launch the first 5G smartphones in the third and fourth quarters of this year, most likely to have the Mate device series.