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Huawei's focus on premium smartphone strategy pays dividends
Published in The Saudi Gazette on 31 - 01 - 2015


Jiao Jian


Huawei has announced the 2014 financial performance of its Consumer Business Group (BG). Worldwide sales revenue for the business group increased 30% year-on-year to $12.2 billion, crossing the ten billion mark for the first time.
Shipments grew by 7.8% to a total of 138 million devices in 2014, including 75 million smartphones, representing a year-on-year increase of 45%.
“Our strategy of focusing on premium mid- to high-end products has borne fruit, with 2014 resulting in significant achievements in a number of areas including product R&D, brand awareness, channel development and growth in market share which further consolidated our number three position in the global smartphone market.
The global influence of our brand has continued to grow, and Huawei has become the first mainland Chinese company to successfully enter Interbrand's Top 100 Global Brands of 2014 list,” said Jiao Jian, Middle East President of Huawei Consumer Business Group.
Over the past year the Middle East has been a high-growth market for Huawei consumer devices with the company investing in numerous flagship products such as its Mate 7 smartphone, sports marketing platforms like the Huawei GCC National Teams Under 23 Championship, as well as naming Arabic singer Nancy Ajram as its Middle East & Africa brand ambassador.
One of the most notable achievements of 2014 is the shipment contribution of mid- to high- end smartphones which rose to 18%.
The Huawei P7, one of the company's premium flagship smartphones, achieved global shipments of 4 million units only six months after it was launched.
Other devices such as the Huawei Mate 7 smartphone has been overwhelmingly well-received among business executives in all markets and has shipped over 2 million units only three months since its launch in September 2014.
The Honor brand unveiled by Huawei last year also delivered solid performance in 2014.
Shipment of Honor devices reached 20 million units. By the end of 2014, the Honor brand had established a presence in more than 60 countries and regions around the world.
Huawei Consumer BG has been focusing on mid- to high- end premium devices since 2012.
The company's P series redefines smartphone design and offers superb cameras; the Mate series stands out by its large screen and strong battery life; and the Honor products provide consumers outstanding connectivity, quality and strong battery life.
The growing popularity of Huawei's mid- to high- end smartphones among consumers has been enhanced by internet marketing initiatives, enabling Huawei's brand awareness to continue its expansion around the globe.
A recent consumer survey report from IPSOS, which covered 32 countries, found that Huawei's brand awareness rose from 52% in 2013 to 65% in 2014, meaning that the Huawei brand is recognized by nearly two thirds of respondents in those countries.
According to IPSOS, Huawei's Net Promoter Score (consumers who had recommended Huawei handsets to others) reached 43%, placing it among the top three brands in the report.
Huawei is also among the top three brands in terms of Brand Momentum, which reflect Huawei's success in improving its brand experience for consumers and further strengthen the brand's competitive edge on the global stage.
2015 will be a year of strategic deployment for Huawei Consumer BG, in which the company will leverage the opportunities the Internet of Things and car networking to achieve breakthroughs in various business areas including products, brand, marketing, channel, retail and e-commerce.
Huawei Consumer BG will focus on flagship products brand marketing to establish Huawei's brand image as a symbol of innovation and high quality.
The Honor brand will focus on internet business and to replicate its successful online business model to overseas markets. — SG


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