Huawei Faces Difficulties In Penetrating The US Market

By Muhammad Firman Akhsanu Ridho , Updated Nov 29, 2016 11:13 AM EST
Close

The Chinese technology giant, Huawei, plans to enter the high-end smartphone market in the United States. To do so will launch in the country its new model Mate 9 later this month. For the first time, Huawei will bring its smartphones to American consumers.

However, the Chinese manufacturer faces a number of obstacles in terms of reputation and distribution. Huawei Mate 9 may only be available through platforms like Amazon. According to the Wall Street Journal, American haulers, responsible for distributing more than 80 percent of the equipment, have been reluctant about Huawei because of its low reputation and security concerns.

A congressional report recommended that Chinese-branded network services not be used for fears of espionage. Huawei has rejected such allegations.   "It takes time to build trust in the United States," said Richard Yu, director of Huawei's smartphone business. The market that Huawei aims to achieve is currently led by Apple and Samsung, which hold market shares of 39% and 23% respectively, the same source adds. The top-end US smartphone market (priced at over $ 500 [471.8 euros]) is the largest in the world.   Another challenge is mobile operators. Huawei will have to make some changes to the equipment to meet the cellular standards used by Verizon and Sprint.

The operators also do not recognize the advantages of adding the Chinese brand to their offer. Last July, Huawei accused T-Mobile of using the Chinese manufacturer's network equipment without signing the patent licensing agreement. The Wall Street Journal points out that the Asian company may probably work with AT & T.  

Huawei has been investing in markets other than the United States, notably in Western Europe. Investments in advertising, contact with local retailers and support for football teams resulted in an increase in its market share to 13% in the third quarter, up from 6% in the same period last year, according to IDC. Share on Facebook

See Now: 'The Walking Dead' Season 8 Gets Preview Special on AMC

© 2017 Game & Guide All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics