Huawei CEO claims company can overtake Apple in 2018

Posted:
in iPhone edited November 2016
Huawei CEO Richard Yu thinks his company can tackle Apple head-on in marketshare, and declared on Thursday that he wants to beat Apple by the end of 2018.

Image Credit: Reuters/Hannibal Hanschke
Image Credit: Reuters/Hannibal Hanschke


"We are going to take them [Apple] step-by-step, innovation-by-innovation," Yu told Reuters. "There will be more opportunities. Artificial intelligence, virtual reality, augmented reality. It is like driving a car. At every curve or turn, there is an opportunity to overtake the competition."

Huawei recently unveiled two phones with price points similar to or exceeding the iPhone.

The Android-based Mate 9 is about the same size as the iPhone 7, but has a 5.9-inch display, and retails for $780. The Porsche Design version of the phone with a 2K curved-edge 5.5-inch screen will sell for $1,550, and Yu promises that the latter will reach the US market in due time.

The finances of holding the marketshare lead

In the third quarter, Huawei shipped 33.6 million phones, but total sales are unknown. Apple sold 45.5 million iPhones in the same time period, with Samsung still holding the lead despite the Galaxy Note 7 debacle with 75.3 million devices shipped.

The cheapest iPhone Apple sells is the $400 iPhone SE. Huawei's least expensive smartphone retails for about $50.

Apple continues to seize the vast majority of the world's profits in the smartphone industry. An analyst report on Thursday claimed that Apple holds 103.6 percent, with most other smartphone manufacturers taking a loss on the business.

The Android platform is however estimated to hold 87.5 percent of global smartphone shipments, with Apple actually declining to 12.1 percent.

Huawei doesn't break down the profits of its individual market segments, grouping together enterprise hardware, network support equipment, and smartphones. However, in its last half-year reporting period, it claimed a 40 percent increase in the combined division's revenue year-over-year, after long periods of decline.
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Comments

  • Reply 1 of 72
    palegolaspalegolas Posts: 1,274member
    Are Huawei products any good?
    Are they working on their own OS too?
  • Reply 2 of 72
    Hope they have their claims supported by good marketing and user preference research. And question is whether it will be on expense of Apple or Samsung and others. I would say others. And of course whether they will make profit.
    ration alrepressthisbadmonk
  • Reply 3 of 72
    The constant pining for Apple's doom is maddening. 

    Why not take over Google? Or Microsoft? Or Facebook? Samsung? Sony?

    No, time and time again, apparently it's Apple that needs to be knocked down a peg or two.
    jahbladebigcalibaconstangjmey267nolamacguywatto_cobratycho24badmonkcornchip
  • Reply 4 of 72
    ceek74ceek74 Posts: 323member
    It's good to have goals.
    brakkennetmagetomkarlbaconstangnolamacguyrepressthisuraharatokyojimucornchip
  • Reply 5 of 72
    mf2kmf2k Posts: 11member
    What he is really saying is that he is going to copy Apple step-by-step, innovation-by-innovation. Huawei has never innovated anything ever. 
    jahbladebiglmagoobrakkenequality72521calipaxmanirelandfrankienolamacguy
  • Reply 6 of 72
    Perhaps I should start a company, give away a crap cell phone for free, maybe just pay people to take them, and secure the highest marketshare crowned king by IDC. As the NIN cover of "Hurt" by Johnny Cash, I wear this crown of sh*t, upon my liars chair! I'm going to bet the lion's share of their sales are sub $100 units and that they lose money on the more expensive units due to low volume.
    bigration aligorskywatto_cobraMal_Rbadmonk
  • Reply 7 of 72
    And where they are earning money from when all report shows that all money goes to Apple or Samsung (in case it is not burning it profit with Note7). Do all earn only from Google search provisions or so?
    caliwatto_cobra
  • Reply 8 of 72
    red oakred oak Posts: 640member
    They don't even own or have any control of the OS they use.  The same exact one used by 500 phone manufacturers in China. Two years ago, it was Lenova, Coolpad, and Xiami (sp) for  that were about to overtake Apple

    What happened to them?
    caliigorskystanthemanwatto_cobraMal_Rbadmonk
  • Reply 9 of 72
    It's not that they can't shipped more devices than Apple, because many oem's can. The question is at what price point and profits. Apple can sell and ship more iPhones if they want to lower their margins and profits, but why? Why should Apple ship more products only to make less money. What no oem's will be able to do is shipped more devices than Apple at the same price point. Why can't people understand this, Apple will not sacrifice their margins for the sake of market shares.
    frankieration alnolamacguychiastanthemanuraharaviclauyycwatto_cobracornchip
  • Reply 10 of 72
    slurpyslurpy Posts: 5,115member
    I claim I can "take over Apple" in 2018. Both our statements have the same likelihood of happening.
    lmagoomwhitecalitechprod1gynolamacguyroundaboutnowigorskyrepressthisviclauyycanantksundaram
  • Reply 11 of 72
    bigbig Posts: 36member
    Just an anecdotal comment. Here in Silicon Beach (the area next to LAX) I have yet to see a single Huawei smartphone in the wild. Or Huawei anything for that matter. Actually, I've always kind of hoped to encounter someone with one - so I can try it and see what I think, and it's kind of like going bird watching and seeing an extremely rare bird. 
    caliviclauyycwatto_cobra
  • Reply 12 of 72
    Has this guy been dipping into the bath salts?
    calianantksundaramwatto_cobrabadmonk
  • Reply 13 of 72
    brakkenbrakken Posts: 677member
    Another Samsung wanna be. 
    I hope they start including gyros in their phones so everyone can play PokeGo...
    calianantksundaramwatto_cobra
  • Reply 14 of 72
    brucemcbrucemc Posts: 1,519member
    Quite possible for them to overtake Apple in "smartphones" market share, with their low end offerings.  Nothing new and nothing that Apple cares about.

    I would say it is pretty much impossible to overtake Apple in market share for their high end phones.   And for those customers they will be primarily battling Samsung, Lenovo, and HTC.  They will never release the numbers, so no one would know anyways.
    caliration alwatto_cobra
  • Reply 15 of 72
    brakkenbrakken Posts: 677member

    inteliboy said:
    The constant pining for Apple's doom is maddening. 

    Why not take over Google? Or Microsoft? Or Facebook? Samsung? Sony?

    No, time and time again, apparently it's Apple that needs to be knocked down a peg or two.
    Maybe someone would take over one of those companies if they were a) profitable and b) had value to customers.
    caliwatto_cobra
  • Reply 16 of 72
    That's all well and good, but are these phones any good quality wise? I know Apple prefers quality over quantity and it shows. Sure, Huawei can ship 50 million+ phones and overtake Apple's marketshare, but how long do they hold up and with what support after purchase? Apple has both of those covered. Can't see them making any money either.
    ration alwatto_cobra
  • Reply 17 of 72
    calicali Posts: 3,495member
    " innovation by innovation ".... by releasing iPhone knockoffs.
    nolamacguywatto_cobra
  • Reply 18 of 72
    mytdavemytdave Posts: 434member
    Shamesung already "outdoes" Apple in marketshare. What will happen is that Huawei will overtake Shamesung and Apple will remain relatively unchanged.
    watto_cobrabadmonk
  • Reply 19 of 72
    big said:
    Just an anecdotal comment. Here in Silicon Beach (the area next to LAX) I have yet to see a single Huawei smartphone in the wild. Or Huawei anything for that matter. Actually, I've always kind of hoped to encounter someone with one - so I can try it and see what I think, and it's kind of like going bird watching and seeing an extremely rare bird. 
    You don't see their products on the street because they are quietly working away in server racks, transmitting data back to their Chinese military intelligence clients. 
    irnchrizanantksundaramwatto_cobra
  • Reply 20 of 72
    auxioauxio Posts: 1,974member
    yawn...  we all know marketshare isn't the same as profit, so this is just a big media show.  The next knockoff manufacturer is right around the corner ready to do the same for cheaper.
    ration alpscooter63watto_cobra
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