The change of Huawei's terminal strategy: emphasizing profit more than brand degree

From 2011 smartphone stickers to today's free brands, Huawei has spent nearly three years reaching the global profile of index 52%. In the next development, Huawei Terminal in addition to continue to strengthen brand building began to pay more attention to the promotion of profits. Huawei spends more than 1 billion dollars a year on handset research and development, and sustained high investment must be supported by good profits, and Huawei's terminals have only a few billion dollars a year to profit. Huawei Consumer BG CEO Yu in an interview with Tencent Technology after the launch of its flagship Ascend P7 yesterday. This is also the root cause of the change of Huawei's terminal strategy. For the past six months, the development of Huawei's terminals has been addressed by founder Ren in a number of internal speeches, and the most recent one is that consumers ' BG should be profit-centric. This is because the development of a few years of Huawei terminals, in the scale, the brand gradually rising, while the profit is not proportional, and this is not the result of Ren want. From the scale, Huawei Terminal last year, intelligent machine shipped 52 million units, into the global TOP3. This year in accordance with the Yu planning goal is 80 million units, or even higher 120 million units, but this prerequisite to do a good job in the supply capacity. The above generation P6 as an example, last June after the launch of the industry acclaim, but the shipments did not complete the Yu year 10 million sales target, the current global sales of 4 million units, the Chinese market accounted for 60%. Yu explained that, last year after the Chinese market operators stressed that the 4g,3g version of the P6 did not realize this, when the start debugging 4G found that the market demand for P6 is still very large, wrong 4G market judgment led to demand, P6 really bought a half year. When it comes to P7, Yu still aim for tens of millions. He thinks the last six months, even the quarter is the real domestic 4G network maturity, 4G version of the P7 life cycle is much larger than P6. Brand, after several years of effort and high investment in marketing, and with the Ascend series of praise has been increased from 2012 global awareness of 25% to 52% last year. Huawei has only two paths in the future, either growing fast or dying. And to fast growth, need to speed up the brand building, this year, Huawei Global brand goal is 60%, next year is%, only in this way will not die. Yu said. However, the scale is also, brand or, inside the Huawei view, the terminal needs more profits. Tencent Technology to understand the situation, the terminal over the past few years can continue to high investment research and development mainly from the traditional carrier business subsidies, and such a pattern with the increase in time, the end of the profit will be no improvement in the state of the internal challenges. The data show that Huawei consumer BG Business 2013-year revenue for the first time exceeded 9 billion U.S. dollars, profitability reached the best time in history. But in the face of the global mobile phone industry shuffle, domestic market into the background of price scuffle, Huawei Management frequently voice, demand terminal business to profit rather than scale layout transformation. In accordance with Huawei's practice, the general line of business leading leaders every three years around the rotation, Huawei's other two major BG in 4The move was completed at the beginning of the month, while Yu continued to take over the consumer BG, showing that the senior executives of the Huawei Company, led by Ren, had affirmed their work for three years. But the next profit target will be the test of Yu ability. So how to improve terminal profit? First in the price of Huawei next will be introduced more than 3000 high-end models, followed by increased sales support in the field of accessories. Yu Frankly, the end product strategy still covers high school three range, but will increase in high-end investment, Huawei in the industry's premium capacity is now higher than other domestic brands, this is the advantage. At the time of the P7 release, Huawei has also developed a series of accessories. such as the perfect match with Huawei Intelligent hand ring, can monitor sleep quality, management exercise fitness data, with mobile phone anti-theft management, remote photography and other functions, even through the hand ring binding keys and mobile phone app can help quickly find hidden in the corner of the key. The global smartphone accessories market is up to $20 billion trillion in 2012, and the smartphone accessories market is expected to grow to 38 billion dollars in 2017, the market is still a blue ocean for the entire industrial landscape, according to ABI Research, an overseas market researcher. To this Yu said, accessories high profit in the industry is not a secret, Huawei terminal will strengthen the future of the introduction of accessories products, especially to strengthen the support capacity of sales channels.