ABI Research finds Huawei currently strikes an appropriate balance between supplying cost-effective devices to low-end markets and setting high standards for its creativity, fashion, and innovation in its high-end market product lines. This, with the ongoing collapse of shipments from brands including Blackberry, HTC, Sony, and Microsoft Lumia, fuels its current momentum.
And the creation of its own chipsets for a number of its smartphone models may help it continue its upward trajectory. In doing this, Huawei can avoid the need to rely on chipsets from IC suppliers, such as Qualcomm, and control its costs. It will also be able to power key smartphone models in its portfolio.
Yet, while the idea to create its own mobile OS is a noble one, Huawei is not the only, or first, Android phone maker to explore creating its own operating system. Many, including Samsung, previously tried to develop competing OS platforms and all failed miserably in their attempts. But Huawei does not necessarily need to fall victim to the same blunder if it can provide a viable ecosystem that does not only focus on volume sales but also encapsulates other business models based around revenue share agreements and partnerships, while offering a range of devices to allow for customer modifications.
"Huawei probably believes that it reached critical mass in terms of its volume sales and so now has the wherewithal to create its own ecosystem," concludes McQueen. "But there will need to be a big improvement in its global reach if this aspiration is to be successful. And history, if nothing else, tells us how difficult it is to create a new ecosystem irrespective of size and brand strength."
These findings are from ABI Research's Mobile Devices Market Sizing and Share (https://www.abiresearch.com/market-research/product/1024842-mobile-devices-market-sizing-and-share/). This report is part of the company's Wearables & Devices sector (https://www.abiresearch.com/market-research/practice/wearables-devices/), which includes research, data, and analyst insights.
About ABI Research
ABI Research stands at the forefront of technology market research, providing business leaders with comprehensive research and consulting services to help them implement informed, transformative technology decisions. Founded more than 25 years ago, the company's global team of senior and long-tenured analysts delivers deep market data forecasts, analyses, and teardown services. ABI Research is an industry pioneer, proactively uncovering ground-breaking business cycles and publishing research 18 to 36 months in advance of other organizations. For more information, visit www.abiresearch.com.
Logo - http://photos.prnewswire.com/prnh/20151014/276887LOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/huawei-aims-to-become-top-global-smartphone-vendor-in-five-years-through-strategic-expansion-300306867.html
SOURCE ABI Research