According to foreign media reports, Huawei’s share of the global smartphone market was only 1% five years ago, but now they have become the world’s third-largest smartphone maker after Samsung and Apple. The next goal of the Chinese giant is to capture the US market, and a key node in this plan is the US operator.
According to news from The InformaTIon, Huawei is in contact with AT&T. It is hoped that the second largest operator in the US will approve Huawei's Kirin chip network. Although this work is still in its early stages, it is a very important step for Huawei.
Previously, Huawei tried to open the US market by launching a Nexus mobile phone in cooperation with Google. However, in the United States where operators dominated, this effort failed.
Of course, the two companies are still in the negotiation stage, and AT&T has not yet approved the Kirin chip to enter the network. Even if the Kirin chip finally passed the AT&T test, Huawei still needs to negotiate various details of mobile phone sales with AT&T. According to sources, the two companies have discussed the possibility of selling mobile phones equipped with Kirin chips in the United States, but I do not know when an agreement can be reached. For this matter, the spokespersons of the two companies did not give a comment.
Previously, in addition to the Nexus mobile phone that cooperated with Google, Huawei also sold some Huawei-branded products through Best Buy and Amazon channels (such as the glory of the US market last year 8). At the same time, Huawei also sold a prepaid mobile phone through Wal-Mart, which was named after AT&T and Huawei.
However, these efforts did not help Huawei open the situation in the US market dominated by operators (80% of sales). According to market research firm Canalys, Huawei's share of the US smartphone market last year was only 0.9%.
Huawei's options are also very limited in terms of carrier partners. It is unrealistic to cooperate with Verizon, the largest operator, because Verizon's wireless network standards are somewhat different. It is costly to make Kirin chips compatible with Huawei. Another operator, T-Mobile, has a legal dispute with Huawei.
Even if Huawei can successfully join hands with AT&T in the future, it will be difficult for Samsung and Apple to dominate the US market in the short term. After all, the current Huawei brand is not well known in the United States. To be a household name in the United States like Samsung, it is almost impossible to invest hundreds of millions of dollars a year in marketing.
In addition, Huawei will also face competition from Chinese fellow ZTE in the US market. This Chinese company with good relationship with US carriers has become the fourth largest mobile phone manufacturer in the US market with cheap mobile phone products. In the past few years, ZTE has also raised a lot of popularity by sponsoring the NBA.
For Huawei, it takes at least a few years to overcome this series of difficulties. There is really no near-road to enter the US market.
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