Shenzhen, China, 29 July, 2014: Huawei, a leading global information and communications technology (ICT) solutions provider, today announced the business performance of its Consumer Business Group (BG) for the first half of 2014. During this period, Huawei shipped a total of 64.21 million devices. Smartphones accounted for 34.27 million units, showing an impressive year-on-year increase of 62%. This growth also reflected the success of the launch of several flagship premium smartphones such as the Huawei Mate 2 4G and Ascend P7 which are gaining popularity amongst consumers worldwide. Huawei Consumer BG’s steady and sustainable business growth further demonstrates the success of its strategy to develop premium quality products while building brand awareness through global marketing initiatives.
Success of Premium Product Strategy
In 1H 2014, Huawei introduced a strong suite of 4G LTE-enabled premium smartphones including Ascend Mate 2 4G, Ascend G6, and most recently, the highly anticipated Ascend P7. Launched on May 7, 2014, in Paris, France, and building on the success of Ascend P6, the new P7 was touted by the industry as a “selfie smartphone” as it redefines smartphone excellence with a 5-inch full high definition display, industry-leading 8MP front-facing and 13MP rear-facing cameras. In addition, wireless performance tests conducted by several major operators in Europe confirmed that the Huawei Ascend P7 tops the list of the premium smartphone brands currently in the market. Less than two months after its global launch, nearly 2 million units of the P7 were sold in 70 markets in Europe, Asia-Pacific, the Middle-East, Africa and Latin America. Meanwhile the Ascend Mate 2 4G, also launched in 1H 2014, achieved popularity in markets such as China, Europe, Southeast Asia, and North America. The impressive sales results of both the Ascend P7 and Mate 2 4G demonstrate Huawei’s success in the mid-to high-end market.
Increasing Brand Awareness
Huawei continues to build on the momentum to become a global brand that is loved by consumers through a comprehensive branding and marketing program that includes advertising, sports sponsorship, industry events, product launches, in-store and online promotions. In particular, Huawei intensified sponsorship activities with leading sports organizations such as AC Milan, Borussia Dortmund, Paris Saint-Germain and Arsenal Football Club, and this contributed significantly to the increase of Huawei’s brand awareness in Europe and around the world. In the Netherlands, Huawei’s sponsorship of the Amsterdamsche Football Club Ajax formalized in May this year has contributed to the rapid growth of its smartphone share in the market.
Rapid Growth in Overseas Market
Huawei’s performance over the past six months was fuelled largely by the tremendous growth in overseas markets where Huawei intensified global marketing initiatives. In Q2 2014 alone, Huawei shipped a total of 20.56 million smartphones to markets in Asia, Latin America, the Middle East and Africa, an increase of 85% compared to last year. Huawei’s commitment to branding efforts in these markets contributed to the impressive shipment growth results of 550% in the Middle East and Africa, 275% in Latin America, 180% in Asia-Pacific and 120% in Europe. Huawei also held majority smartphone market share in selected markets in Asia and Latin America.
According to research from Kantar Worldpanel ComTech, in the past 12 months Huawei’s smartphone sales increased 123% in five major European markets, including the United Kingdom, Germany, France, Italy and Spain. Huawei currently holds 3% market share in Germany and Spain, and aims to increase this to 5% in the near future. “Across Europe there is an accelerating trend of fragmentation in the handset market as smaller brands gain real traction,” said Dominic Sunnebo, Strategic Insight Director, Kantar Worldpanel ComTech. “...Newcomers to the European market such as Huawei...are challenging the established names.”
In the second half of the year, Huawei Consumer BG will continue to commit to the development of the 4G LTE market, designing and developing innovative technologies for its range of consumer devices. In addition to further enhancing collaboration with telecommunication carriers, open market and online sales channels, it aims to put more new premium mid- to high-end flagship 4G LTE-enabled smart devices and wearables into the hands of consumers worldwide.
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