This is an interesting one, but smartphone manufacturer, Huawei, seems to be swimming against the current and cutting down on the number of budget smartphones it makes.
Want ChinaTimes reported that Richard Yu, Huawei Consumer Business Group chief executive, said the mobile phone maker will stop manufacturing some 80 percent of its smartphones geared for the low-end of the market. The company will retain a few low-cost models instead and channel more energy into branding and boosting margin. Huawei wants to boost its own direct retail channels instead of selling through network operators as it has done over the years. Many of the low-end smartphones that Huawei have made are customised variants at the behest of network operators.
While it may look like Huawei is swimming against the current, I think that it is good business sense to limit the number of budget models being churned out to a few, especially as it would seem that there only incremental differences between those devices. The vital thing is that they are still serving the low-end market.
Huawei mobile devices have been in Nigeria for a while and have been pushing hard in the market in recent times. The brand is yet to gain significant mindshare among smartphone users though. Globally, however, Huawei is the third largest smartphone maker.