The company claims the recent release of mobile phones and fixed terminals using the CDMA450 technology was only the start of a major drive to become a big handset player. Huawei’s push into branded mobile phones sees it locking horns with major industry players Nokia [NOK], Ericsson [ERICY] and Motorola [MOT].
Indigenous handset manufacturers have already driven down foreign rivals’ market share and margins in the huge Chinese market, but Huawei has greater financial clout and depth of mobile telecoms expertise than any of its local competitors and expects a near doubling of overseas sales this year to around $1 billion.
Based in the southern Chinese town of Shenzhen, Huawei has sought to maximise its advantages by first offering handsets that use CDMA450 technology, a niche sector in which it is a strong player.
It will follow it up by launching CDMA handsets designed for more commonly used bandwidths in early 2004 and models for the third-generation W-CDMA standard by mid-2004.
Huawei has invested hugely in mastering 3G technologies and its low-cost research and development and manufacturing should allow it to offer even relatively advanced handsets at prices that will be difficult for foreign rivals to match.
However, this may be offset by its lack of experience in marketing, together with a brand that is little known internationally outside the telecoms industry.
