(Yicai Global) Oct.25 -- Chinese smartphone maker Huawei Technologies Co. is set to re-focus its strategy on the low-end handset smartphone market after a speech by founder Ren Zhengfei at an investment review board meeting in July, which signals a change in strategy for the technology giant.
The firm has already released multiple low-end smartphones this year through its Enjoy and Maimang series, said Wang Yang, research director at IHS Technology. However, increased focus on the sector could help the firm compete more effectively against South Korean smartphone giant Samsung Electronics Co. [KRX:005930] in the global market.
Huawei shipped 112 million units in the first three quarters of this year, an annual increase of 19 percent. The firm's third quarter shipments surpassed those of US-based Apple Inc. [NASDAQ:AAPL], making Huawei the second biggest such company in the global market and biggest in the China market, Yu Chengdong, chief executive of Huawei Consumer Business Group, said at the release of the new Mate 10 model.
Yu, also known by his English name Richard, once said that Huawei would look to outperform Apple in three years and Samsung within five, to become world largest smartphone maker.
Huawei has a firm foothold in the high-end handset market, though it is hard to make significant breakthroughs in the short-term due to the nature of the market. The Huawei Mate 10 is therefore not expected to outperform rival models the Galaxy Note8 and iPhone X.
This could be a key factor in the firm's renewed focus on large-scale distribution and the low-end market, a strategy similar to that of Samsung.
"In Africa and India, Samsung still enjoy the largest market share. Huawei's low-end smartphones should also take aim at these markets." Securities Daily quoted Wang as saying.