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Huawei to make exit from budget market, CEO confirms

The company aims to ship 150  million smartphone units this year (Source: ValueWalk)
The company aims to ship 150 million smartphone units this year (Source: ValueWalk)
Huawei CEO Richard Yu has, in an interview earlier in the day, released some information on the upcoming Mate 10 and the company's business arm.

Huawei are undoubtedly among the top five biggest smartphone manufacturers in the world, with a number of publications placing them just below the Apple and Samsung juggernauts. Company CEO Richard Yu, in an interview today, dropped some hints about the forthcoming Mate 10 and the OEM's business model moving forward.

“We are giving up the very low-end devices because the margin in this is extremely low, and it’s not making enough profit for us,” Yu said. “The priority is Europe, China and Japan, where the economy is healthy and people are able to consume them.”

This statement may be indication that the company is looking to pull away from its recent expansion into the West African market, as that market may not be providing the same ROI as the more developed ones; which makes sense, considering the fact that there is almost certainly a lean towards the budget segment there. It's a good business decision, really, as that part of the market is mostly run by Xiaomi already.

The CEO's statements raise a question as to the future of a few of the company's product lines, though, with the Enjoy and Y lines being geared specifically towards the budget market. There's a chance that this means the company focuses on the Honor sub-brand as its mid-range offering, and the Mate line for premium entries.

When quizzed on the upcoming Mate 10, the CEO had a few things to say.

“We will have an even more powerful product. The Mate 10, which has much longer battery life with a full-screen display, quicker changing speed, better photographing capability and many other features that will help us compete with Apple.”

This means that the Mate 10 will, in fact, sport the edge-to-edge display that was reported a few weeks ago. There's a chance that  the Mate 10 will be powered by the Kirin 970, which is something to look forward, as it will be the first entry in the next generation of accessible smartphone processors.

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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2017 07 > Huawei to make exit from budget market, CEO confirms
Ricci Rox, 2017-07-28 (Update: 2017-07-28)
Ricci Rox
Ricci Rox - News Editor - @riccirox
I'm a freelance copywriter who lives and dies for tech. Android, ​especially. The smartphone market is one going through an impressive growth spurt, so I crawl the Internet with keen interest in a technological ecosystem that doesn't seem to be slowing down anytime soon.