Rise of Huawei, Xiaomi to challenge Samsung and Apple

Rise of Huawei, Xiaomi to challenge Samsung and Apple

Staff Reporter

2014-05-11

Chinese smartphone brands Huawei and Xiaomi have stated that their rise in the global market will challenge the dominant status of their foreign counterparts Samsung and Apple, reports our Chinese-language sister newspaper Want Daily.

After Huawei released its latest flagship model Ascend P7 in Paris on May 7, Yu Chengdong, CEO of Huawei Consumer BG, said the Chinese brand has the ability to challenge Samsung, which has so far dominated the Android smartphone market.

Although sales for Huawei’s previous flagship model P6 were not as good as expected, the CEO said he is confident that the P7 model will help the Chinese firm reach its output goal of 80 million smartphones this year.

The company’s brand awareness around the world has risen rapidly from zero to 52% and will a target to reach 70% this year. Yu said a brand’s value is built on its quality, service, users experiences and reputation rather than advertisements. He added that Samsung currently does not hold a competitive edge over Huawei, and the Chinese brand will continue to expand in the global market.

Market researcher International Data Corp (IDC) meanwhile said Huawei’s market share ranks third in the world after Samsung and Apple.

Another Chinese brand Xiaomi has reportedly surpassed Apple in terms of market share in China in August last year, according to Counterpoint Market Intelligence. Xiaomi has continued the momentum in the first quarter this year and occupied 11% of the mainland’s market share. Samsung was the bestseller with 18% of market share, while Lenovo and Apple took 12% and 10%, respectively.

Industrial insiders said only a few Chinese smartphone brands have earned profit, however, as Chinese firms have cut their prices in order to compete in China’s smartphone market.

 

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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