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Huawei’s premium smartphone plan has mixed results in Africa

By , Portals editor
Africa , 28 Jan 2015

Huawei’s premium smartphone plan has mixed results in Africa

On the back of strong year-on-year growth, reflected in its 2014 financial results announced yesterday, leadership at Huawei Consumer Business Group believes 2015 will be a strategic year for the company.

The company's results show a 30% year-on-year sales revenue growth to $12.2 billion, attributed to its focus on high-end premium smartphone strategy.

According to the Company South Africa and China registered the strongest growth in brand awareness this year, whilst North Africa and Latin America reported a more significant drop.

"The growing popularity of our mid- to high- end smartphones among consumers has been enhanced by our internet marketing initiatives, enabling Huawei's brand awareness to continue its expansion around the globe and specifically in South Africa," said Peter Hu, Managing Director for Huawei Consumer BG Southern and Eastern Africa.

A recent consumer survey report from IPSOS, which covered 32 countries, found that Huawei's brand awareness in South Africa rose from 26% in 2013 to 86% in 2014

The mobile telecommunications firm also stated that in 2014 the shipment contribution of mid-to-high end smartphones rose to 18%.

In January 2015 Huawei South Africa's product marketing director Yudi Rambaran confirmed that while the mid-to-high-end segment would remain the company's primary focus, it would continue to services the entry level segment.

"Our focus is indeed on the mid-tier and high end segments. However, for Africa and including South Africa, we will continue to bring some entry level devices to the market based on our market share ambitions and consumer requirements. In addition, we will continue to evaluate our key focus areas and adjust according to market conditions as well as our strategies," said Rambaran.

Huawei's strategy has always centred on the desire to establish itself as a recognised brand in its own right. The intention is to build on the progress it believes it has made in this regard, to leverage off its evolution from ODM to OEM, and to grow the mid-to-high end segment within Africa, a market the Company describes as "aspirational and key to its growth strategy."

The company confirmed that 2015 will be a year of strategic deployment, with the intention to leverage opportunities in Internet, the Internet of Things and car networking.

Richard Yu, CEO of Huawei Consumer BG, said, "Looking ahead, Huawei Consumer BG aims to sustain the growth momentum created in 2014 and further consolidate Huawei's leading position in the mid- to high- end smartphone market with a 2015 shipment target of 100 million units. With Huawei's strong technical capability, Huawei Consumer BG will continue to create extraordinary brand experiences to consumers all over the world and realizing dreams for people everywhere."

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