Huawei Phone Enter into America Market

Huawei Phone Enter into America Market

Introduction

Huawei was founded in the year 1987 when it started building the telecommunications networks in china; a decade later the firm began its global expansion. At present the company has a large workforce constituted by 150,000 employees and its products are available across 170 countries in different parts of the globe. The firm has strategic partnerships with the global telecom giants such as Deutsche Telekom (Germany) and Vodafone (U.K.) for network build-outs. Within United States the firm made its foray in the year 2001 and employs 1,500 people, with its domestic headquarters being located in Plano (Texas). The Shenzhen-based Chinese firm Huawei is now eyeing the U.S. smartphone market and targets to make a significant place among the three leading manufacturers in the country (www.digitaltrends.com). Though the firm lacks recognition in the United States but it is already established as a global force. The privately held company had its revenues accentuating to about $46 million in the year 2014 and it envisions the target of $70 billion by the end of year 2018. The number of units sold for the Smartphone devices in 2014-2015, recorded the sales of around $12 billion. The firm is optimistic of making a way for its products into the psyche of American consumers through the retail shelves. Zhiqiang Xu, the President of Huawei’s U.S. division has commented that the year 2015 is going to be crucial for the firm. The same sentiment is conveyed by the Huawei's vice president of external affairs, Bill Plummer who have said that the impetus given to the smartphone devices is actually a part of branding and marketing campaign in U.S. and building the brand is a huge priority for the firm (www.digitaltrends.com). The following project report discusses the business plan for the Huawei cell phone in the American mobile market.

Size of Market

The project of Pew pertaining to mobile technology found out that by October, 2014 64% American adults were having the ownership of smartphone and a significant chunk of these people own an e-reader too (www.pewinternet.org). Apart from this around 42% of American adults have a personal tablet (www.pewinternet.org). The data on the consumer demographics show that majority of the owners of smartphone are young adults, some of them belong to minorities and the low-income strata and they use these devices for accessing the internet. The dependency of the American users is in its nascent stage with hardly7% being dependent on it (Table 1).

A deep understanding of the customer demographics help in defining the product positioning (Barney & Hesterly, 2006). The product has the potential to open up new customer demographics especially those who are seeking more expression from hardware and to attract buyers from new geographical regions.