Huawei Uses Price Drops to Open up the US Market Dilemma | High-end Machine Drops US$100

Tencent Technology News In 2018, Huawei returned to the US mobile phone market, but encountered great resistance. Recently, the US’s largest electronic retail chain Best Buy announced that it would stop selling Huawei mobile phones. However, according to the latest news from foreign media, Huawei is still opening up One of the difficulties in the US market is the price reduction of the product.

At the International Consumer Electronics Show in Las Vegas, Huawei released the high-end mobile phone Mate 10 Pro to the United States as a 'big ticket' to return to the United States. But surprisingly, AT&T, the US telecommunications giant, cancelled at the last minute. Sales of the phone's cooperation.

It is reported that under the pressure of politicians, another telecom giant Verizon has also canceled sales cooperation.

Huawei said it will sell mobile phones through third-party retailers, e-commerce sites, and its own channels.

According to reports from foreign technology media, Mate 10 Pro has an official retail price of US$800 in the United States. It used to provide gift packs when it was first listed. This week, Huawei announced that the Mate 10 Pro phone will cost US$100 in the United States. Consumers only need US$700. Be able to start.

After Best Buy stopped cooperating, there are still third-party retailers in the United States that cooperate with Huawei, including Amazon, New Egg, B??H, etc. Consumers can use these websites to purchase Huawei high-end machines at preferential prices.

According to reports, this is not a permanent price cut, effective this week.

Foreign media pointed out that after reducing the price of 100 US dollars, Huawei's high-end mobile phones and Samsung Electronics, Apple's competitive products, the price is more competitive.

In the US smart phone market, operators such as AT&T and Verizon dominate the market, monopolizing 90% of the market share. Operators are also the main sales channels for high-end mobile phones.

Huawei's high-end mobile phones cannot be supported by operators and are promoted by external retailers. It is very difficult to obtain substantive shares.

Smartphones sold by Amazon and other retailers are mainly low-end and middle-end mobile phones, and they are for low-income people and prepaid users.

Obviously, due to the failure to obtain operator channels, Huawei has to open markets in third-party retail channels and e-commerce markets through cost-effectiveness and price competitiveness.

Previously, Huawei has also launched two low-end mobile phones in the United States at a price of about one or two hundred US dollars, which is also the mainstream price of Chinese mobile phones in the United States.

For Huawei, the U.S. market is a hard nut to crack. Some years ago, Huawei encountered the “national security crisis” in the U.S. market and was unable to bid for U.S. contracts. Since then, Huawei has gradually faded out of the U.S. market. And the focus of internationalization of telecommunication equipment is Europe.

However, in the second half of last year, Huawei's mobile phone business had an unfavorable signal, and the growth rate slowed down rapidly. In the fourth quarter, it even experienced a sharp drop of 10%. Huawei, once considered to be likely to exceed Apple’s, is expanding its mobile phone sales and Samsung, Apple’s The distance between.

From a global perspective, Huawei is implementing a strategy that will win every battle. After returning to the United States, Huawei will re-issue the Brazilian market within a few months. In addition, Huawei India executives have also stated that they will increase their manufacturing capacity in India. India’s share has increased fourfold to 10%.

Obviously, the declining sales volume at the end of last year and the miracle's high growth rate that Xiaomi Company almost doubled have already made Huawei management's 'wake up from sleep'. It is still unknown whether Huawei's remedial measures will be effective in 2018.

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