Huawei Yu Chengdong: Beyond Apple in the next year

Interview with Huawei Yu Chengdong: Beyond Apple in the Latest Years

Huawei Mate 7 can be said to have created a miracle in the domestic market. It sold for more than eight months at a crazy premium of 3,000 yuan, and eventually sold more than 7 million units. Such a good result did not even think of Huawei. It is also such an excellent achievement that the outside world has an unprecedented expectation for Mate 8. This kind of expectation also brought huge market pressure to Huawei. In other words, the sales of Mate 8 is no longer the sales volume of this mobile phone, but the positioning of Huawei mobile phone brand in the outside world: Mate 7 is Mistakenly hit, or Huawei really has the ability to fight.

Kirin 950: Huawei's moat barrier

The technology research and development capabilities of Huawei, such as iOS to Apple, the supply chain to Samsung, is a very solid fortress. Few of the domestic competitors can reach Huawei's height in the short term. This is also repeatedly emphasized by Yu Chengdong in an interview: "Everyone is always promoting Huawei. In fact, Huawei's full name is 'Huawei Technology Co., Ltd.'".

The Kirin 950 on Mate 8 is naturally the core part of this fortress. In a certain sense, Kirin 950 has surpassed the hardware attribute itself and derived the propaganda attribute. This is the first time that Chinese manufacturers have the strength and the international giants.

Huawei used four A72 cores and four A53 core core architectures in Kirin 950. As the world's first commercial A72 manufacturer, Huawei has paid a price for this. Yu Chengdong said with regret that in order to wait for the official commercial use of the A72, Huawei Mate 8 did not release the Mate S in the same period in September, and indirectly missed the Christmas season sales in foreign markets.

In the domestic market, due to the advance of the Spring Festival this year, Yu Chengdong did not show full confidence in whether Mate 8 could successfully complete the distribution. “Capacity climbing” and “Spring Festival factory vacation” became some vague answers when asked about the distribution.

When asked how the Kirin 950 can bring improvements in the experience, Yu Chengdong directly mentioned the power consumption. This chip with 16nm technology has a 65% performance improvement over the previous generation Kirin 930, while its power consumption has dropped by 70%. The improvement of standby capacity is a highlight of Huawei Mate 8 during the promotion period.

Targeting business users

Mate 7 brings the sweetness of Huawei, allowing the company to identify the market for high-end business users. In the press conference, and after the interview, Yu Chengdong also mentioned many times that the positioning of Mate 8 is the positioning of business users. The pain points that Mate 8 will address are also based on business users.

“Mate 8’s business pricing was reported to the General Manager for five times before and after it was passed.” Zhu Ping, president of Huawei China, said in a half-joking tone.

Mate 8 is divided into four versions, priced from 2,999 yuan to 4,399 yuan. It can be said that Huawei does not intend to let Mate 8 compete with the flagship models of the domestic mobile phones. At the press conference, it is not difficult to find out that Huawei Mate 8 is optimized in hardware (standby, large screen, large-capacity storage). In software development (EMUI's various business customization features), and even the body color (there is no follow-up to launch rose gold), more hope to consolidate and open up the market of more than 3,000 yuan. In other words, Huawei wants to create a reverse attraction that “uses Mate 8 to represent me as a business person”.

However, in an interview, Huawei did not fully explain the words. After all, the Mate S launched in September gave the market a slight question: Is the success of Mate 7 accidental?

Mate S was launched in September this year. Huawei hopes to use this product to once again explore the price positioning of the high-end market. Therefore, the price of this mobile phone has reached 4399 yuan that the domestic machine did not dare to think about. However, unlike the continued popularity of Mate 7, Mate S did not set off too much waves after the listing. Yu Chengdong also mentioned in the interview that the sales of Mate S are now 700,000 units.

However, for the market feedback of Mate S, Yu Chengdong said that the development of Mate S is expected. The combination of this mobile phone and Mate 8 is a product that is more biased towards light business.

Yu Chengdong’s answer did save some face for Mate S, but we would prefer to use Mate S as a test of water that did not fulfill expectations. Huawei's expectations for Mate S are certainly not limited to the current performance, but in the end, Mate S's performance has also helped Huawei to more accurately locate Mate 8.

Beyond Apple in the latest years

If you have a look at the Mate 8 conference, you will have the illusion that this is a dual product launch of Huawei Mate 8 and iPhone 6s Plus. The reason is very simple, Mate 8 will be compared with the iPhone 6s Plus in almost every link, from the screen to the ratio, to the photo, to the endurance, almost no mention.

In an interview, Yu Chengdong’s discourse also revealed a strong obsession with the hope of catching up and surpassing Apple. Among Huawei's competitors, only "Apple" and "other mobile phone manufacturers", even Samsung can not really become the opponent of Yu Chengdong's mind.

When asked if he would strengthen the retail channels of third- and fourth-tier cities in order to pursue market share, Yu Chengdong first admitted that in these markets, Huawei did have a gap with some domestic manufacturers, and Zhu Ping also said that it would be three points in the future. One of the counties (at least a thousand) builds an experience store. However, Yu Chengdong repeatedly stressed that Huawei is now considering the overall market reaction. Since the establishment of experience stores in third-tier cities will face many factors that undermine the user experience, blind expansion does not seem to solve the problem.

"We don't pay special attention to this share, we pay attention to the proportion of high-end." Yu Chengdong said.

In other words, “preempting the high-end share” is Huawei’s higher expectation for the Mate series. Apple’s high profit in the high-end market is something that every mobile phone manufacturer cannot ignore. According to the IDC report, in the third quarter of 2015, Huawei shipped 26.5 million units, and its global market share reached 7.5%. Among them, mid-to-high-end models accounted for one-third of total sales. In this list, Samsung ranked first with 23.8%, while Apple ranked second with 13.5%.

For Beyond Apple, Huawei is betting on the technology: chip, audio, camera, and Huawei's traditional RF technology are the driving force behind Huawei's continued expansion.

"Our sales will surpass Apple in a year or two, at the latest two years." Yu Chengdong answered quite simply.

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