Three years to capture the European market Huawei terminal this year to impact billion sales

The mobile phone industry has never been more competitive than it is now.

"It can be seen that many industries in this industry are disappearing or walking on the road to extinction, for our Huawei Terminal only two roads, either grow up or disappear, these two years is very critical." "Yesterday, Huawei Consumer Business CEO Yu in Paris, France, said in an interview with the" First financial daily, "Huawei's end of the overall sales target is 80 million units," if the supply chain is mature, can actually do 120 million ~1.5 billion Taiwan. "

But in Yu's view, the pace can be slow, in the face of the global mobile phone industry reshuffle, the domestic market into a price scuffle against the background, Huawei is asking the terminal business to profit rather than the size of the layout transformation. The flagship of the P7 in Paris, but also by Huawei as "found the core competitiveness and direction" products.

It is understood that Huawei P6 global sales of more than 4 million units, become Europe's best selling Huawei handsets. Huawei insiders told reporters that P6 may have been the best in the history of Huawei's end-profit products.

At the press conference, Yu also responded to the reporter's previous warning to the terminal business of Huawei CEO Ren. "Ren is more worried that we are lured by the outside world, into the blind price war, ignoring the quality of products, but also at the expense of profits." "Yu said.

Knocking on the door of Europe

"When Huawei transformed from ODM to brand, 14 operators finally only Vodafone is willing to cooperate with us, all people are questioning Huawei, it is difficult to do brand, they can not accompany you to invest." "Huawei Consumer BG marketing vice President Shaoyang so described the 2011 Huawei from the ODM transition to do their own brand situation."

After 3 years of Yu, Huawei Consumer BG Business 2013-year revenue for the first time to break through 9 billion U.S. dollars, smartphone annual shipments of 52 million units, ranked third in the world, profitability has reached the best period of history.

In this report card, Huawei's terminal market growth driving force mainly from overseas, China has only increased by about 20%. According to Huawei's official data, the countries with the largest shipments are China, Spain, Germany, Italy and the UK in turn.

The European market, led by Spain, is emerging as a new market for Huawei's profits. Yu previously told reporters that the average price of Huawei's terminal shipments grew about 30% a year. "We want to do the average unit price," he said. "In this context, P6 as the touchstone of the brand market into Europe."

"In fact, the performance of P6 can be better, when the overseas market all up, but the shortage is serious, we actually only sold about six months." 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.

But sales may not be the biggest concern of Huawei and its partners.

Shaoyang told reporters, and P6 cooperation channels to make money, which for our P7 products in Europe won the trust and opportunity. "When our P1 products were released in Europe in 2012, almost five months of time to go public, and now P7 basically can do the synchronous listing, in addition to the operator market, as well as the electric and open channel market, P7 the first listed countries from the original 8 countries rose to the current 33 countries. Shaoyang told reporters.

In fact, the biggest significance of P6 is the restructuring of Huawei's brand position in the European market, which has risen from the 2012 global perception of 25% to 52% last year. And a few years ago, this was a single-digit figure.

From 2011 onwards, Huawei Consumer BG began to transform, give up the ODM white card, from the operator OEM, custom machine to its own brand, has launched the D1, D2, P1, P2, p6,2013 the end of The independent Glory, and launched the Glory 3 C, 3X, X1 and other models. Shaoyang told reporters that at that time P1 sales were only 400,000, but Huawei also insists on branding.

In this case, the Western European market to 2013 years, the overall model sales than the 2012 just entered the triple, Shaoyang to reporters that this year's target is 7 million units. When it comes to P7, Huawei has set its sales target at 10 million units. Huawei believes that the last six months, and even the quarter is the real domestic 4G network maturity, "4G version of the P7 life cycle is much larger than the P6."

Unique play in overseas markets

"The whole global trend is to reduce subsidies, and to reduce subsidies is an important opportunity for Huawei, the previous iphone, Samsung mobile phone sales are very expensive, are subsidized by operators to sell, without subsidies, I think we will be more competitive." Because our good products and even better products sell much cheaper than them, we will only win a better market. Yu to reporters.

In fact, in a market dominated by operators like Europe, consumers are more concerned about the price of packages and mobile phones than on bare-metal prices. So as a handset manufacturer, how to seize the tariff file, to get the operator's subsidy is very important. For example, if a manufacturer's subsidy rate is 50% and the B manufacturer's subsidy rate is 30%, it will have a significant impact on the sales results.

"We had a lesson before, when we were working with an operator, when we had a cell phone model that was in the same price file as Apple, and our team was happy to be with the apple, but in fact the machine ended up selling poorly," he said. Because at that time the operator of the Apple subsidy is very strong, the price is very advantageous. So it doesn't matter which file you are in, and it's important to stay competitive in this stall. Shaoyang told reporters that if subsidies were reduced, domestic manufacturers such as Huawei would have more overtaking opportunities.

In fact, even as Huawei continues to invest in brand marketing, Apple and Samsung are still the biggest rivals for profit-making in terms of data.

According to IDC released 2013 global shipments data, Samsung continued to maintain a leading position in 2013, the market share from 30.3% to 31.3%, a small rise. Apple, though still in second place, fell by more than 3%, down from 18.7% in 2012 to 15.3%. Among other branded handsets, Huawei, LG and Lenovo were separated third, fourth and five in the 2013 global smartphone market, but less than 5% per cent of the market.

"Mobile phone in China is a face project, this is the embarrassment of domestic mobile phones." "The media CEO Zhang told reporters that in the research found that domestic mobile phones in high-end models, the impact on consumers far less than Samsung and Apple, the origin of domestic mobile phone manufacturers seem to determine the outcome. In this case, Zhang that the terminal brand can learn from the car brand Geely Strategy, direct acquisition of overseas brands.

But in Huawei's view, the future strategy of consumers ' BG is actually determined from the Sanya conference, which will be the focus of profitability, sustainable development, no malicious inventory and good management of risks. There are no plans for a major adjustment at present and in the future. Huawei Chairman Ren stressed that the terminal business needs to go their own way, must be consistent with Huawei's overall brand image.

"Huawei has not yet come to an outbreak, our investment is invested in the future, two or three years before we can see the results." Yu told reporters that Huawei Terminal is on the path to a correct rise, if Huawei does not make its own faint, there will be a great opportunity.

At Huawei's 11th annual Global analyst Conference, Huawei Vice chairman Zhijun also put "ruthless words": "Consumer BG because of 2013 years of success, there are impetuous tendencies, need to cool down early, to soberly recognize who they are, where the future will go." ”