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Can Huawei Make a Dent in America?

Kyle Ford
August 16, 2018

Huawei, pronounced Huawei, is one of the most successful telecom companies in the world. Its growth has been steady and proves that the Chinese government’s vision for its once fledgeling telecom sector is moving full steam ahead. Since as early as 2002, Huawei has been part of numerous global partnerships in which it has played a significant role in introducing high-speed Internet access to developing regions. Its headquarters are based in major cities throughout the world. They report having shipped 153 million phones in 2017. Huawei has continuously hit a brick wall, however, when it comes to entering the much coveted U.S. Market.

Why?

The trade war currently brewing between the US and China may seem like the only deterrent to Huawei penetrating the US telecom market, but the obstacles have been a long time coming. Even in 2008, the US government was skeptical about the Huawei brand merging with U.S. telecom company 3com. The Pentagon raised concerns that the partnership was a security threat. Huawei threw in the towel because its presence in the US Telecom market was clearly not being looked on as something positive back then. Not much progress has been made ten years later. Huawei is still unable to change the negative narrative around its brand. Its hands are still tied from launching its products in the U.S. It hasn’t won the political allies it would need to do so either. Verizon refuses to sell its phones to its customers. Sprint, which has recently come under scrutiny for suspected dealings with Beijing, doesn’t sell Huawei products even under its new merger with T-Mobile. Business is business until Washington DC is involved. Both of the two major telecom brands are continuing to cooperate with the intelligence community by not using or selling Huawei equipment.

Where are Huawei phones sold outside of China?

Its phones are selling like hotcakes in a South Korean mobile device market that was once largely split between Samsung and Apple. Huawei is also one of the top-selling smartphone brands in the huge Russian market. It has enormous brand recognition across the continent of Africa. Its sales have risen by 38.6% in the EU region as it continues to catch up with new iPhone releases and Samsung models that tend to cost more. Other Chinese smartphone makers are also having difficulty competing with Huawei’s growing brand power

How do Huawei smartphones stand out from so many others available on the market?

Huawei phones offer a blend of design and cool features. They’re innovative. They’ve rolled out phones with screens that don’t scratch as well as devices with considerably longer battery power than others. Huawei has managed to surpass the expectations of budget-conscious smartphone users who don’t want to cheat themselves out of the look and features they like while spending less. The P20 Pro is one example. Top mobile phone review sites insist that the incredible pictures its cutting-edge camera takes make it a must-have. Smartphone buyers in markets where Huawei is not as untouchable a brand as it is in the U.S. don’t consider owning one a step-down. In fact, it’s getting close to becoming just the opposite

Is Huawei’s popularity in the U.S smartphone market inevitable?

Smartphones users were loyal to one or two top brands back in the early days when mobile phone technology was in its infancy. Blackberry was all the rage before Apple’s iPhone stole Blackberry’s fire. The market has diversified considerably since then, however. Smartphone users are savvier and less dazzled by having a mobile phone unless it offers something truly novel. Smartphone users are also more astute shoppers. They compare new designs, features and pricing extensively before buying. They’re less likely to plunk down a significant amount of cash on a phone they think is overpriced for functionality they can find elsewhere cheaper. Huawei is proving to be a top-selling brand outside the U.S. that American smartphone users are aware of, some already jumping the political firewall and buying Huawei phones online in marketplaces such as Amazon. Major carriers may feel like they’re losing out on the profit they could make if they were able to partner with the maker of globally popular phone models and the stifled Chinese telecom giant may finally knock down the barriers that have been holding it back for so long.

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