Huawei uses price cuts to open up the US market High-end machine drops 100 dollars
Issue Time:2018-06-13
In 2018, Huawei returned to the US mobile phone market, but encountered huge resistance. Recently, the United States’ largest electronics 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 struggling to open up the US market, one measure is the product price.

At the International Consumer Electronics Show in Las Vegas, Huawei released the high-end mobile phone Mate 10 Pro for the United States as a "big ticket" to return to the United States. Surprisingly, however, AT&T, the US telecommunications giant, cancelled the sale of the handset at the last moment.

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

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

According to reports from foreign technology media, the official retail price of Mate 10 Pro in the U.S. is 800 U.S. dollars. It was provided as a gift package at the time of initial listing. This week, Huawei announced that the Mate 10 Pro mobile phone will cost US$100 in the United States. Consumers will need only US$700 to start.

After Best Buy stopped cooperating, there are still third-party retailers in the United States working with Huawei, including Amazon, New Egg, B?H, and so on. Consumers can use these sites 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 the price reduction 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 and monopolize 90% of the market share. Operators are also the main sales channel for high-end mobile phones.

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

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

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

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

For Huawei, the US market is a hard nut to crack. A few years ago, Huawei encountered a "national security storm" 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 its internationalization of mobile phones and telecommunications equipment is in 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, there was even a sharp drop of 10%. Huawei, which was once thought to be more than Apple's, has its cell phone sales unraveling from the distance between Samsung and Apple.

From a global perspective, Huawei is implementing a competitive strategy. After returning to the United States, Huawei will reissue the Brazilian market within a few months. In addition, Huawei’s Indian executives also stated that they would increase their manufacturing capacity in India by quadrupling their Indian share to 10%.

Obviously, the decline in sales volume at the end of last year and the "miraculous" high growth that Xiaomi Company has almost doubled have already made Huawei management "awaken from their sleep." Whether Huawei's remedial measures in 2018 will bear fruit is still unknown.

Source: I love R & D network

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