Sunday, November 27, 2016

Chinese Tech Giant Huawei’s Latest Smartphone Faces Frosty U.S. Reception


Huawei a Chinese technology giant, is looking to enter the US Smartphone market by launching its new high end Mate 9 smartphone to US consumers in January 2016.  However, many business analysts are skeptical as there are several key factors which are major obstacles blocking the companies path to success in the US market.   One reason is that US carriers such as AT&T, Sprint etc. who distribute a large portion of the smartphones sold in the US are reluctant to work with Huawei because of its lack of brand recognition with in the US.  As our international marketing book points out in several chapters being able to ensure your product is recognizable on a global scale is a major key to success.  Additionally, another inhibitor is that in 2012 a congressional report suggested that US carriers avoid using Huawei gear in their networks due to fears that China could use the installations to spy on the US. Huawei has vehemently denied this accusations saying they operate independently of the Chinese government, however marketing strategy has not convinced potential partners that there is no risk.  Huawei is the third largest maker of smartphones in the world behind Apple and Samsung and in order to supplant Apple and Samsung Huawei must find a way to penetrate the US market.  Their initial approach makes sense, they are starting with online retailers such as Amazon etc. and targeting the high end market first to help build brand recognition.  Over time as political tensions ease and it finds a suitable partner in the retail space Huawei may be able to become a player in the US market however, that seems a very distant time from now.  

1 comment:

  1. I doubt they'll ever be able to surpass Apple here (maybe Samsung), but Apple is too ingrained into the tech culture these days.