Huawei, the 3rd largest smartphone manufacturer in the whole world and the largest in China announced that they won’t manufacture low-end smartphones any longer because the category of the smartphones is not making them much money and the company would also focus on premium devices.
Mr. Yu Chengdong (Richard Yu), CEO of the Consumer group Huawei that makes smartphones said:
“We are giving up the very low-end devices because the margin in this is extremely low, and it’s not making enough profit for us. The priority is Europe, China, and Japan, where the economy is healthy and people are able to consume them”
So, this actually means that they will start producing high-end smartphones, just like HTC and LG that had stopped offering low-end devices. Meanwhile, there are still Huawei low-end smartphones in the market but when that stock runs out, their chance will be open.
What’s your say about this? Will you leave a cheaper phone with good features to buy an expensive phone with classic features?