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   HUAWEI will force to enter the American market with great challenge

HUAWEI TECHNOLOGIES failed from American market in 2013. The main reason for failure is that U. S. Congress alleged HUAWEI communication facility threatened the security of American. Afterwards HUAWEI started keeping away from American market.

Nevertheless, Reuters presently quoted acclamation from HUAWEI and said that smartphone and wearable devices of HUAWEI will force its way into American market. For this target HUAWEI will do some advertising-marketing. Besides, HUAWEI plans to sponsor the football team, expecting to completely change the image of Chinese bargain price manufacturer.

Strategy changing

HUAWEI TECHNOLOGIES has been the well-known Communication Facility Corporation and cellphone manufacturer around the world. Annual income of HUAWEI has reached 40 billion dollars. However the income of American market contributes a little for this data. The official of HUAWEI announced that this year more smartphone and wearable devices will be imported into American market, including HUAWEI Glory mobile phone faced to young people.

The spokesman of HUAWEI in America Bill Plummer said HUAWEI would change the way of promotion and the image of Chinese bargain price manufacturer. The medium thinks that HUAWEI TECHNOLOGIES traditionally focus on the research and development and doesn’t devote much in advertising-marketing and brand shaping. As a consequent, it means a lot to HUAWEUI this year in changing.

In the end of November last year, HUAWEI released the advertisement of Glory 6 plus in outdoor billboard of American Times Square. Plummer claimed that it could be a signal for HUAWEI market strategy in America.

This spokesman didn’t reveal the advertisement budget in American market and which football teams will be sponsored. Previously HUAWEI TECHNOLOGIES has sponsored the Arsenal Football Club of England, the Indian cricket club and Australian rugby club.

This week HUAWEI launched a kind of smart watch, which will be sold in over 20 countries and regions, America included.

Formerly the main dispute of HUAWEI in America is connected much with telecommunication equipment. However, this year HUAWEI will strive for common consumers in America. HUAWEI has promoted variety of smart phone ranging from high-end to low-end.

To grab American market share, HUAWEI will take a combination of measures, including cooperating with American mobile operator and retailing by Amazon. Apart from these, HUAWEI will do some direct selling in America.

Completely different from Chinese market, American smart phone market is conducted by operator. At present the top four operators of America don’t sell HUAWEI cellphones, which is unwell-known in America. However what’s lucky is that high-end HUAWEI mobile phone has achieved favorable comments.

Challenging

The high-end smartphone has been monopolized by iPhone and Samsung. It is unaware how American operators would accept HUAWEI cellphones. Related operators didn’t revealed if communicated with HUAWEI.

According to the data from IDC, market share of HUAWEI is less than 1%. On the contrast, Chinese ZTE has achieved 6.4% market share of American smartphone, which mainly aims to sell bargain price mobile phone of High Cost-Effective and build cooperative connections with second-line operators of America.

Perhaps HUAWEI could learn from successful experience of ZTE in America.

The analyst of Gartner Technology Consultancy Corporation, C.K.Lu said that the best worthy method for HUAWEI is the sale of bare mobile phone online. This kind of cellphone isn’t tied to operators and belongs to full price sales. This analyst emphasize that it is difficulty for HUAWEI TECHNOLOGIES to build connections with American operators.

He said:＂It is a great challenge for HUAWEI to enter American market apart from Apple and Samsung.＂

The spokesman of Huawei in America Plummer alleged that it is part of process of for HUAWEI to rebuild the market image by entering American market in HUAWEI cellphone and watch. HUAWEI expects to build a more normal corporate image.

Hamper of two years ago

HUAWEI suffered a lot in 2013. A report of U. S. Congress claimed that HUAWEI TECHNOLOGIES will threaten American security. The report considered that HUAWEI telecommunication equipment may be used to pry for information. But HUAWEI denied related content.

The CEO of HUAWEI, Ren Zhengfei said that HUAWEI TECHNOLOGIES is sandwiched in China-America foreign trade disputes, which has a bad effect in business development of HUAWEI.
At that moment American White House said that there was no evidence to confirm HUAWEI telecommunication equipment was used for espionage.

What should be noted is that the HUAWEI TECHNOLOGIES dispute focus of past lied in telecommunication equipment adopted by mobile operators. For smartphone and wearable devices, HUAWEI didn’t meet much prevention.

The analyst holds the view that the largest challenge in America is not from politicians of Washington but the low popularity of HUAWEI brand.

Otherwise, American market of smartphone and electronics-consuming has appealed to more and more Chinese manufacturers. Apart from ZTE, One Plus also started to be on sale in America. Not long ago MI has announced to access to American market. But what pioneeres is not smartphone but accessories, including earphones.

In addition to smartphone, the three Chinese tycoons of Tencent, BAIDU and Alibaba Group have extended its investment and business development in America, too.