Moving The Smartphone Target Market

It may seem obvious but part of point of trips is to generate dialogue. Huawei is interested in what we have to say about the perception users outside China have of them, as well as our opinion on their latest product trends, and we’re interested in Huawei both internally for how they work, generating ideas/products, but also externally and how they approach different markets, especially moving into North Americas and expanding in Europe.

While Huawei has been on the periphery of most tech media since the launch of the P1 and the P2, and more prominently so with the Mate 7 and the P8, they are still a brand with little recognition outside of technology enthusiasts in the West. Huawei is well known in China, and product launches are well attended with lots of interest, as well as deep discussions with the media, but it is only recently that they have begun to extend invitations to similar outlets in the west. Part of it is to explain their story, their philosophy, and the other part is to explain to journalists such that they can run their own interpretation, providing Huawei smartphone reviews with at least an element of analysis about the company in general at the same time.

A cynic might argue that in order to get a foothold into the US or expand in EMEA, there needs to be a combination of a large targeted marketing campaign as well as a definitive product individualization, such as an Apple device, or a Samsung, though to LG’s Flex or HTC’s characteristic look.  But even then, HTC’s current situation is in a state of flux despite heavy marketing for a number of reasons, meaning that a big push has both potential risk and reward. As part of this trip, we discussed with Huawei on how exactly we perceive the smartphone market, what are the interesting elements of it and how Huawei can open up to us with both information, structure, and sampling.

It was quite telling that during a roundtable discussion, the journalists around the room were asked what sort of products they were interested in. It was almost a unanimous chorus pointing towards the flagship models for two main reasons – firstly, most other companies provide flagship devices, so there is a rolling comparison and knowledge of an adapting market, but the second point was that the flagship devices typically bring in more variance, engineering prowess and showcase the best of the company talent. Both points are certainly true, and I (Ian) personally can’t disagree with their responses.  


The Huawei Mate S - the company's current flagship device

My argument was slightly different, especially if we compare to the industries I regularly write about; from my perspective, I’d prefer to test the popular devices. With a $600 smartphone, everyone has an opinion on the design, the hardware, the benchmark results, or simply fanboyism, but not everyone has $600 to spend. While a lot of users might discuss the virtues online, or debate over small details, the reality is that a good portion will opt for something around the $250-$300 range for their main device or family devices, depending on contract, region, availability and other features. This is similar to when we get $2000 laptops, or $500 motherboards – lots of discussion, but in reality fewer people will buy them and go for the $800 2-in-1s or sub-$160 motherboards.

Andrei brought up a good point regarding this, which relates back to the first point about mainly reviewing flagships – if you test in the $250 range for smartphones, then there are 80 or so devices to choose from and the review either has to be in a vacuum comparing to almost nothing or based on the limited knowledge of what exactly is in the market, as it's impossible to review every alternative that exists out there. It provides an interesting dilemma for companies like Huawei and their competitors, because depending on what the media wants to look at will dictate what products the manufacturers will sample for review and/or how many are distributed. Thankfully Huawei are open on this and are willing to entertain our future device requests. 

This becomes all important for entry into their non-standard regions, if they feel that there needs to be more presence that just a flagship model. Huawei over the years has slowly reduced their smartphone lineup from around 80 new models a year to fewer than 25, even though most of us only ever discussed three or four of those in 2014/2015 (P8/P8 Lite, Mate 7 and Honor 6). Chances are that the metric of devices moving into the west should increase over time, in both flagship and mid-range markets especially.

It’s Just Another Smartphone Manufacturer™ Discussing Corporate Structure, Strategy and Kirin 950
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  • lilmoe - Friday, December 4, 2015 - link

    "eager to ripoff their customers and sell them overpriced garbage if they get the chance"

    History has proven that that's exactly what people want (consumers, power users and reviewers alike)... I don't accept it, but I'm living with it. You should too.

    People just want a working, OK product with "amazing presentation", and they're willing to pay a big buck for that.
  • s.yu - Saturday, December 5, 2015 - link

    Yeah, Huawei is despicable in selling cheap tech wrapped in flashy shells as "high end", but look at all those fools who bought them.
  • londedoganet - Friday, December 4, 2015 - link

    > In the end Huawei is not really Chinese, they behave just as bad as Western companies, eager to ripoff their customers and sell them overpriced garbage if they get the chance.

    I fail to see the link between being Western and ripping customers off. Dishonesty in dealing is not an exclusively Western trait, neither is being honest and fair-dealing an exclusively Chinese trait.
  • Cinnabuns - Friday, December 4, 2015 - link

    As a Chinese person who grew up in Hong Kong, I have no idea what jjj is talking about.

    As a person who reads story after story about Chinese knockoff devices of questionable quality being sold to consumers, I still have no idea what jjj is talking about.
  • dawei86 - Sunday, January 10, 2016 - link

    is that you are fucking retard???
  • Ryan Smith - Monday, December 7, 2015 - link

    In the interest of transparency, let it be known that I have removed 6 comments from this discussion thread. Racism will NOT be tolerated, end of story. This is a technology news website, and while I like to give you guys a wide berth, there are some matters that we simply will not humor and are not appropriate for this website.
  • Goyim - Monday, December 7, 2015 - link

    In the End iPhone is not American, for it is Made in China.
  • V900 - Friday, December 4, 2015 - link

    "Eager to ripoff their customers and sell them overpriced garbage "

    What a load of pearl-clutching, pseudo intellectual prattle
  • tipoo - Friday, December 4, 2015 - link

    So other Chinese companies are eager to squander all profit margins in reverence of the consumer?
  • s.yu - Saturday, December 5, 2015 - link

    They're not in a position not to. Huawei, however, is soon leaving that position, as you can see from the pricing of its P7, P8, Mate 7 and Mate S devices.

    They'd gone the furthest with Mate S, using the worst possible technology in a flagship and charging outrageous prices. P8 and Mate 7 already had ancient technology at normal to high prices, but Mate S was the worst offender.

    They probably didn't sell much though, as they quickly reverted with the pricing of the Mate 8. With much improved internals, it's cheaper than Mate S still(they made an excuse that Mate S is the real flagship while Mate 8 is a semi-flagship, semi-flagship with better internals than the actual flagship, LMAO) and close to what a Chinese manufacturer would usually charge.

    Xi JinPing's propaganda is basically turning the less educated 90% of the Chinese population into Nazis. All media are tightly controlled and this is some of what they're spreading: 1. The oppressors are at the gates and we rightfully expand our military presence. 2. We Chinese are the righteous(controversial territorial claims, repeating colonial age history over and over etc.) 3.We Chinese are the best(playing with numbers, telling little stories etc.), and western economies are collapsing. Imported merchandise are overpriced rip-offs, buy our own which are at least as good(claims "proven" through ridiculous "experiments" that only serve to feed the nationalists what they want to see). See something familiar here? Remember what Hitler was feeding to the Germans before he waged war on the world?

    This is what Huawei is using, because, as I said before, the name itself can be loosely translated into "China is capable", it's also usually how the fanboys interpret the name, so the nationalistic ultra-lefts with brittle self-esteem would have an orgasm to see it sell. When they brainwash enough ultra-lefts to follow them to the death, see to it that they start cashing in on that.

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