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- Huawei's "1 + 8 + N" strategy will be a great success in China because it has no competitors
Huawei's transparent life strategy, which aims to provide users with a full-scenario experience across multiple smart devices, can help it differentiate itself in the domestic market like China like no other competitor has tried, an industry insider said. “This strategy is very important for any brand, because the future will not be linked to hardware but to integration and the software ecosystem to create a seamless experience. Since Huawei is also in the network infrastructure space, they are still able to fine-tune connecting devices in a much better way than any other brand," said Tarun Pathak, associate director at Counterpoint Research, in TechRadar Pro Middle East. the Chinese company consists of main portals (smartphones) and sub-portals of eight smart devices (PCs, tablets, smart TVs, audio devices, smart glasses, smart watches, automobiles (telematics) and headphones) and IoT devices (including lighting, security, audio and video, etc.) It is based on the idea of bringing people together, moving the brand beyond smartphones to focus more on its ecosystem "1 + 8 + N" The "N" represents the layer where everything comes together and indicates the thousands of IoT-enabled devices that can be seamlessly connected.The "+" sign in the middle stands for Huawei Share and HiLink, the technology that makes this connection easy. Pathak said China accounts for a quarter of the total global smartphone market for Huawei. For Huawei, he said China was doing well and their strategy would work well because they had great products and a good ecosystem strategy outside of AI and 5G vertical integration. "It seems pretty robust and they can grow as well," he said. Outside of China, however, he said, the strategy would be difficult.
The biggest challenge is outside China
“The biggest challenge is beyond China. Huawei's smartphone market share has declined and users are abandoning the platform. If users move, there's a good chance that market share will be taken by competitors like Apple and Samsung. “If a person leaves the ecosystem, it is difficult to attract them back. Consumers in some regions, such as the Middle East and Central and Eastern Europe, will remain loyal to the Huawei brand for a longer period of time, while consumers in India and Southeast Asia will move more quickly to others. ecosystems,” Pathak said. In addition, he said that Huawei is gaining market share outside of China by selling older devices with the Google Play Store, but this strategy may not last long as it is not sustainable. "What Huawei needs to look at right now is in different areas where they can still develop, like Russia." Wherever Huawei can still sell older smartphones in regions like the Middle East and Africa, that way they can always keep their heads above water," he said. Huawei continues to lead in Russia despite a year-long US ban. In the first quarter of this year, Huawei had a 33% market share, followed by Samsung with 19% and Xiaomi with 18%.Pathak said that Huawei can build a user base with its smart watches, smart bands and headphones "Headphones are a new category and are selling well, but when it comes to more expensive devices like smartphones, TVs and laptops, you'll face challenges outside of China. We've seen people using different new categories from different equipment manufacturers." original and will always try to test the new products,” he said.Similar to how Samsung has its own Tizen OS to run TVs and smartwatches, he said Huawei needs to invest heavily in Harmony OS and especially on the developer side. “The app system is quite fragmented globally with each region having its own popular apps. Therefore, Huawei must attract these developers to the Huawei App Store. Huawei has a lot of money to develop the developer ecosystem, but attracting developers from outside of China is a big challenge," he said.