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Huweai Launched Its Mate X

Autor:   •  May 15, 2019  •  Research Paper  •  2,360 Words (10 Pages)  •  30 Views

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In 2018, "Huweai launched its Mate X mobile phone that topped Samsung and Apple’s premium Smartphones in price" (Schulze, 2019). Huawei’s Mate X costs about $2,600 while Samsung’s Galaxy Fold, a similar product, goes for $1,980. "Release of Mate X heats up the competition between Huawei and Samsung on the high-end Smartphones segment" (Schulze, 2019). Huawei heavily relies on the phones innovative features to attract loyal customers. The following features characterized the phone; "it is slimmer when folded, dual-SIM capability, latest Leica camera system, curved grip for one-handed use, and flexible OLED screens" (Schulze, 2019). Besides, Schulze (2019) argues that "the phone has an edge over the other premium Smartphones due to its 5G network." Despite its success in the international market, there is a technology war between America and China. As a result, the U.S. has warned its citizens against purchasing the Huawei Meta X as it aids China in spying American companies, claims that the company denies.

1.1 Market Size

"The cell phone industry is the fastest growing sector in the telecommunications industry, it is valued at about $350 billion" (Yan et al., 2017: 22). Some of the key drivers for this sector include; increase in population, rising urbanization in developing economies and increased internet connectivity through cell phones. Schulze (2019) reveals that "this is a highly concentrated industry; few established companies enjoy a larger portion of the market share." These established brands are mainly engaged in manufacturing mobile phones. "They include: Samsung, Huawei, Apple, Lenovo, Xiaomi, LG, ZTE, and Oppo" (Yan et al., 2017: 22). This is also the fastest-moving industry; ever-emerging technologies characterize it. The sector is divided into two main segments; Smartphones and feature phones. Smartphones are multipurpose mobile computing devices. "Feature phones can access the internet, play and store music but lack the advanced functionalities of a Smartphone" (Yan et al, 2017: 25). "The Asia Pacific region dominates the cell phone industry while China, India, Russia, and Brazil are expected to experience steady growth due to the rapid economic development and urbanization in these economies" (Schulze, 2019).

1.2 Competitor Analysis

The high profitability has attracted numerous cell phone manufacturers looking to segment their market share. Ojo (2017: 317) argues that "the competitive landscape has significantly changed as new companies have emerged as top players." "Motorola, Ericsson and LG have been replaced by Samsung, Huawei and Apple" (Ojo, 2017: 318). Ojo (2017: 319) argues that "Huawei faces stiff competition from both low-end and high-end Smartphones in the local and international

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