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Huawei CES sleepless night: "fangs" the U.S. market

via:CnBeta     time:2018/1/10 7:02:49     readed:463

From the overall revenue of Huawei's company, the current US market share of single digits hovering, and specific to the mobile phone business, according to research firm Canalys data in the third quarter of 2017, Huawei's market share of only 0.5 % Or so, and even behind the TCL-Alcatel and Cool, ZTE ranks fourth in the United States with 15% share.

"Before Q3 2017, the U.S. market had been the world's second-largest handset market, with its self-evident meaning for handset makers, but the U.S. is a carrier-led market with a higher share of operators than in Western Europe, If you can not enter the carrier channel, then it will be difficult to have room for development, so how to develop in line with the US market strategy is handset manufacturers need to consider, in particular, the market structure is stable, with the Chinese market is very different. "Canalys analysis Jia Mo, the first financial reporter said.

It is in this context, the still climbing mobile phone Huawei's growing desire for the U.S. market. But the day before Huawei released the new CES products, Huawei and AT & T's red light came out.

"There is an emergency meeting going on now and there is no more response to the cooperation with AT & T." On the evening of the 8th of the local time, Huawei's BG spokesman told CBN reporter that Huawei had not said anything on any occasion After that (cooperation with U.S. carriers), details of how (situation) will be announced at CES. And in the evening media dinner, and AT & T's cooperation has also been classified as "taboo" topic, has not been mentioned.

Huawei officials said Huawei has proven itself in the past five years by launching high-end products in the global and US markets and will announce more details on the new CES site.


Was "stopped" cooperation

Huawei is determined to tell the world a story about Forrest Gump: It is only a matter of time before the door opens to the United States, but the reality is not always imagined.

In the month before CES, Huawei insiders BG insiders told reporters that Huawei plans to announce cooperation plans with operators at CES and said more cooperation details will be announced. But today, all cooperation is suspended as AT & T unilaterally halts.

In an email leaked by the media, "18 members of Congress in the United States sent a joint letter to the chairman of the Federal Communications Commission (FCC), Ajit Paii." FCC specifically asked for an investigation into Huawei's cooperation with U.S. carriers and again referred to a U.S. congressional ban on Huawei equipment in the U.S. market in 2012.

As mentioned in the e-mail, we asked to see if FCC employees are currently allowed to use Huawei products in government affairs and whether such regulations will be adjusted if U.S. telecom operators cooperate with Huawei.

Huawei officials did not respond more to the reporter on the e-mail, saying only that the plan to list Huawei products in the United States will not be suspended.

But in the short term, Huawei's plan to cut into the U.S. market from operator channels will not be too smooth in the short term.

In March last year, it was reported that Huawei is seeking cooperation with AT & T. AT & amp; T is one of the major carriers in the United States. Statista's report shows that in 2016, AT & T had a market share of around 33% in the United States. According to official figures, in 2016, AT & T provided operators for 147 million users in the United States and Mexico service. At the same time, its MetroPCS is the largest prepaid operator in the United States.

"In the past, we did not perform well in the US market and made some adjustments in the market." Yu Chengdong, head of Huawei Consumer BG, said in a recent interview with CBNIF that while the United States fears that Huawei's telecommunications network equipment will threaten its network security, Huawei's efforts to sell smartphones in the United States will not be affected. He said consumers only want better products and Huawei is exploring ways to sell smartphones through US telecom carriers.

But in fact, for the major U.S. carriers, there is still more "courage" needed to add Huawei handsets to their products because if a manufacturer is labeled "threatening U.S. national security," then The brave lobbying company will also feel connected to a hot potato.

"Security and patent issues are necessary conditions for entering the U.S. market and if they do not solve both of these issues they will be challenged by the government and other vendors even when they enter the U.S. market," Jia Mo told reporters.

"Fangs" the United States market

Although the voice of Chinese manufacturers is getting louder in the global smart phone market, the United States alone is an exception. For example, Huawei has a market share of only 0.5% in the United States.

And the Chinese market is different is that the US mobile phone market is still firmly dominated by operators of the market, and Samsung and Apple have taken root in the market.

According to Jia Mo revealed that the third quarter of 2017, the total smart phone market in the United States 40M, slightly behind the rapid development of the Indian market, but the market structure is stable, including operator channels accounted for 83% of the total market, with the Chinese market Very different. "Apple accounted for 39% of the share, Samsung 18% second.Chinese manufacturers have two in the top five, ZTE accounted for 15%, close to the third LG, Lenovo (Moto) ranked fifth. Ten TCL-Alcatel also close to 3%, Cool nearly 1%, Huawei only 0.5% share. "Jia Mo told reporters.

He believes there are many reasons for China's share of handsets being generally low in the United States. Such as Samsung and Apple in the United States more solid foundation, leaving no room for other manufacturers, but also for example the Chinese manufacturers have long been accused of patents and security issues.

However, since the United States is the most profitable market in the global telecommunications industry, many manufacturers have been striving to test the US market by selling other products. Before the negotiation with AT & T, Huawei also tried to "curve" many times to enter the United States.

In September 2015, Google officially released two Nexus 5X / 6P handsets. Among them, the Nexus 6P is Huawei foundry, which is an indication that Huawei officially entered the U.S. market. However, Google is still using this phone Qualcomm Snapdragon 810 processor, but did not use Huawei's Kirin processor, so the so-called "entry" is not that practical significance.

After that, Huawei launched a series of products in the United States, including smartphones such as Mate 9 and Glory 8, as well as the MateBook tablet and notebook combo, but these products can only beAmazonE-commerce channel sales, has yet to enter the operator's storefront.

Jia Mo told reporters that for the moment if mobile phone manufacturers want to seek a certain market share in the United States, then it is impossible to leave the carrier to develop. "At present, the awareness of Chinese consumers in the United States is still very limited, but manufacturers can change this situation through vigorous market investment." However, he said that at present, Chinese manufacturers are still more opportunities in the low-end market in the United States, Diluted LG's share in the United States.

(Reporter Qian Tongxin also contributed to this article)

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