Menu
Higher-end phones help Huawei rake in the cash

Higher-end phones help Huawei rake in the cash

Huawei's phone business is focused on making a profit, and not just shipping large volumes

A Huawei store in Shenzhen, China.

A Huawei store in Shenzhen, China.

Huawei Technologies' shift to selling high-end smartphones is paying off. The more expensive devices helped almost double the company's handset revenue in this year's first half.

Although Chinese brands have a reputation of selling cheap, low-end products, Huawei is out to make itself into a top provider of premium phones.

On Wednesday, it revealed some of that progress, noting revenue from its handset business totalled US$7.23 billion over the previous six months, up 87 per cent year on year.

Huawei is seeing the average selling price of its phones rise at the same time as demand goes up: Its smartphone shipments during the period rose 39 per cent on a year earlier.

Given that Huawei's home market of China is already rife with competition, and showing signs of slowing growth, the sales data is a good indicator that the company's product strategy is working.

In April, Huawei's acting CEO said it wanted to make a substantial profit from phones, and not simply sell them in huge volumes.

Although Huawei's primary business has been in networking gear, the company is focused on smartphones as well. Stumbling blocks include its lack of brand recognition, and controversy surrounding its ties to the Chinese government. But over the years, the company has been investing in more marketing, and developing cutting edge phones that are meant to impress.

On Wednesday, Huawei added that in this year's first half, unit sales of its mid-market and high-end phones grew 70 per cent year over year. Unit sales are also growing at over 40 per cent in regions including Europe and the Middle East.

Overall, Huawei's sale revenue for its entire business in the first six months reached almost $29 billion, for a year-over-year increase of 30 percent.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags Huawei Technologiesconsumer electronicsAndroidsmartphones

Featured

Slideshows

Reseller News launches inaugural Hall of Fame lunch

Reseller News launches inaugural Hall of Fame lunch

Reseller News welcomed 2015 and 2016 inductees - Darryl Swann, Dave Rosenberg, Gary Bigwood, Keith Watson, Mike Hill and Scott Green - to the inaugural Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed how the channel can collectively work together to benefit New Zealand, the Kiwi skills shortage and the future of the industry. Photos by Maria Stefina.

Reseller News launches inaugural Hall of Fame lunch
Educating from the epicentre - Why distributors are the pulse checkers of the channel

Educating from the epicentre - Why distributors are the pulse checkers of the channel

​As the channel changes and industry voices deepen, the need for clarity and insight heightens. Market misconceptions talk of an “under pressure” distribution space, with competitors in that fateful “race for relevance” across New Zealand. Amidst the cliched assumptions however, distribution is once again showing its strength, as a force to be listened to, rather than questioned. Traditionally, the role was born out of a need for vendors and resellers to find one another, acting as a bridge between the testing lab and the marketplace. Yet despite new technologies and business approaches shaking the channel to its very core, distributors remain tied to the epicentre - providing the voice of reason amidst a seismic industry shift. In looking across both sides of the vendor and partner fences, the middle concept of the three-tier chain remains centrally placed to understand the metrics of two differing worlds, as the continual pulse checkers of the local channel. This exclusive Reseller News Roundtable, in association with Dicker Data and rhipe, examined the pivotal role of distribution in understanding the health of the channel, educating from the epicentre as the market transforms at a rapid rate.

Educating from the epicentre - Why distributors are the pulse checkers of the channel
Kiwi channel reunites as After Hours kicks off 2017

Kiwi channel reunites as After Hours kicks off 2017

After Hours made a welcome return to the channel social calendar last night, with a bumper crowd of distributors, vendors and resellers descending on The Jefferson in Auckland to kickstart 2017. Photos by Maria Stefina.

Kiwi channel reunites as After Hours kicks off 2017
Show Comments