China’s technology firm Huawei, which is betting on the “biggest opportunity” in the smartphone market in India, wants to establish itself as a premium smartphone brand, a segment where it would compete with the likes of Apple and Samsung, a top official said.
“We are number three smartphone maker in the world… In India, our focus will be to position Huawei brand among the top premium brands...comparable with Apple or Galaxy [Samsung’s range of smartphones],” said Peter Zhai, CEO, Huawei India consumer business group.
Wireless investments
“…In India, wireless investments are much more than fixed line. I believe smartphones will grow faster. It is the biggest opportunity for us,” he added.
The company unveiled two smartphones— Huawei P20 Pro at a price tag of ₹64,999 and the Huawei P 20 lite costing ₹19,999. Smartphones would also help boost the firm’s consumer business that includes data cards, accessories, tablets and laptops.
“The consumer business in India just started,” said Mr. Zhai. “It shows very huge promise in the future. Consumer business of Huawei could be its biggest business in India, surpassing infrastructure, in the next three-five years,” he said. Globally, the consumer business group is worth about $36.4 billion.
On product roadmap, he said, “The number of products does not matter. Every year, in the Indian market, hundreds of models are launched but there is a lack of reliable brands… how to exist for long time is a challenge in consumer business.
“To win this market in short term is not difficult if your prices are cheap... But if you want to do long term business, and be a reliable brand, you need every product to be [of] high quality and sustainable…Our investments in technology don’t allow us to sell the phone at ₹9,999,” he said.
On advertising spend, Mr. Zhai said, “advertising should be proper. Too much advertising will increase the price of the product.
“That is why our strategy will be little bit different from other brands. We don’t want to invest too much money in this area. We prefer to invest in R&D.”
