The Huawei Company that was founded by the former solider Ren Zhengfei of People's Liberation Army 25 years ago is presently number two in the world communication networks, the business that brought in the end to the three-quarters of the previous year of total revenue.
This will alter the plans of Huawei to carve out in smartphones a global brand, fighting against Apple Inc and Samsung Electronics Co Ltd, especially in china that is anticipated to become the largest smartphone market of the world in this year.
In fiercely contested arena of smart phone, Huawei anticipates to increase their android-based product series with the new Microsoft windows phone 8 handsets as well as tablet PCs and also possibly with phablets. The company is also planning to makes their own smart phone operating system.
In an interview at the headquarters of the company on Monday, CEO of Huawei Device, Wan Biao said that whatever customers like, they will make. They are also donating resources to develop the mobile operating system that will be based on the present platform if other firms will not allow them to utilize their operating system in the near future.
Huawei Company has developed their customer gadgets business that sells dongles, tablet PCs and mobile phones aggressively. Their mobiles phones have gathered the market share, however at the risk of profitability that has promoted the firm to change towards the high-end devices like Ascend and Vision models.
Wan said that they are investing still actively for the upcoming 1 to 2 years and it will be a great challenge for the company to get high profitability. In the month of July, Huawei has posted a drop of 22% in the profit of first-half operating by referring to the important challenge of the weak economy of the world as well as tighter expenditure by the telecoms operators.
Huawei anticipates customer gadget revenue to increase regularly at up to 30% by the coming year, however smart phone sale will quickly increase by up to 40%. The firm told that it anticipates the business will boost revenue by up to third to $9 billion in this year, which can reach to $30 billion in the upcoming five years, by matching the equipments of the telecoms business as the main revenue driver.
Analysts state that the branding of the smartphone is the main challenge for the Huawei Company that has produced the so-called white boxes for the telecom carriers in order to sell as theirs. An analyst at Frost and Sullivan, Ajay Sunder said that the handsets seems really cool and has good feature. From the customers' point of view, it is a branding thing.
Generally, ZTE and Huawei corp has been engaged in selling in the low-end of market. It has been an expensive game for both of them. While rising up of the value chain in order to command a choice for the brand and the mobile phones will be definitely a big challenge.
Sunder added that the best medium for both of them is to have an isolated branding for its mobile handsets instead of utilizing the Huawei brand.
Huawei is planning to release smartphones by utilizing the windows phone 8 operating system in the later part of 2012 or in the beginning of coming year, however it has not confirm any particular timeframe for the launch of windows 8 phablets and tablets.
Sunder further adds that it will surely be tough for the firms to contest in the operating system market which is dominated by Microsoft, Google and Apple.
Earlier Huawei told that it targets to ship over 100 million of mobile handsets in 2012, involving 60 million smart phones. Wan said that it will be challenging, yet that aim remains still intact.
But the growth of Huawei will outpace the business. On Monday, Ovum which is the UK research firm has forecast the global shipments of smart phone of 1.7 billion in the year 2017, this year it increased to 450 million in relation to previous year, which means a usual annual growth of over 20%.
Hu Houkun who is the deputy chairman of Huawei in a media interview said that the firm targets to become third largest smartphone vendor in the world, with the market share of 15% in the year 2015, increased from about 5% presently.
Europe is the hot spot for the Huawei that has outlined scheme to invest about $2 billion in this month to deploy its operations in the UK, by creating round new 700 jobs in five years.