HuaweI Uses Different Strategy to Penetrate US Market
Huawei Technologies is taking advantage of the recent changes on how operators in the US are selling smart phones as the company tries to get a foothold in the telecommunication market. Shenzhen based Huawei known for making telecom network gears is fast becoming the third biggest smart phone manufacturer in the world, through the sale of mid priced handsets in the fast growing domestic market and increased the appeal to price conscious consumers in western Europe.
But still the company lags behind market leaders Apple and Samsung and is still needs to gain a foothold in the high end segment of develop markets in the US since the company is viewed with suspicion since US lawmakers has flagged the Chinese telecommunication giant as a security risk. Ever since the company launched five new devices at the Mobile World Congress fair in Barcelona, Huawei took early steps in the US to create a better relationship with US mobile operators and transact directly with consumers through online shops. Huawei has acknowledged that the US is indeed a competitive and tough market to penetrate, and recently there has been changes in the US that provided new opportunity for other players such as Huawei to come in the US market using a different distribution strategy.
For the third quarter of 2013, 3 percent of all phones sold in the US were manufactured by Huawei, trailing Apple by 36 percent and Samsung by 32 percent. Usually mobile operators are purchasing phones by bulk from manufacturer then offer them for free or with a low upfront cost to consumers as they sign phone contracts.
Huawei is also increasing its spending on marketing strategy every year in hopes to raise consumer interest and awareness for their brand. In Europe, Huawei has sponsored several soccer clubs and in New Zealand the company sponsored a rugby team then sponsoring movies in the United States.