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GMIC 2012: Yu Chengdong, CEO of Huawei Consumer Business Group, Says Huawei is Boarding the Mobile Internet Train

Huawei Technologies Co. Ltd, the telecommunications equipment giant has enjoyed many years of success worldwide in the mobile equipment industry, CEO Yu Chengdong expressed his aim to expand the company’s presence even further internationally and to soon challenge the number one player in the market. To achieve this they have currently set their eyes on the mobile internet industry.

The company’s strategy to get on board the mobile internet bullet-train is through mobile devices, smartphones and tablets. This is an ambitious and bold move because the smartphone business is a new territory for the company. They have launched four series of smartphones targeting different consumer bases, from elite to fashionable and value for money devices, in hopes to broaden their consumer base worldwide. Huawei’s smartphone sales revenue is increasing steadily. In year 2011, they had revenues of 20 million RMB, and this year’s forecast is set at 50-60 million RMB.  They are still students in this mobile internet realm but they believe the key to success is innovation and not imitation like most other Chinese companies.

The smartphone strategy is proving successful in China as the customer base continues to grow rapidly. Still, they have experienced difficulties in penetrating Western markets due to their stringent quality requirements. CEO Yu Chengdong expresses confidence in this strategy in saying “we [Huawei] need to catch our competitors and outrun them.” He believes they should advocate their competitive advantage and strive to set a new industry standard with their state of the art smartphones.

He teases us with their newest development, “Ascend D1 Quad Smartphone” which carried benchmark CPU which is best in the industry. The phone features some of Huawei’s newest technological advancements, for example the technology in chatting services that exploit mobile internet to replace traditional SMS, and better entertainment services.

In the beginning of his speech he emphasized the importance of “work together for joint prosperity”. Hence all their smartphones are created on open platforms in hopes that third party companies can provide lifecycle services such as ebooks and applications that generate more value for Huawei and partners during the life cycle of the devices, a win-win cooperation. We expect a lot from Huawei Technologies Co. Ltd in the coming year.

Will Kong
Will is an undergraduate exchange student in Beijing at Tsinghua and a guest writer for 


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