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April 28, 2015

Huawei undercuts Xiaomi with Honor 4C smartphone

Handset will be sold primarily online.

By

Huawei is continuing its drive to gain a bigger share of the smartphone market with the launch of the Honor 4C handset.

The newest budget handset has a 5-inch display and will cost around $129, which is clearly a lot less than the iPhone 6 and its domestic rival’s phone the Mi 4, which costs around $250.

One of the tactics used to help keep the price low is the decision to sell the phone primarily online through outlets such as Alibaba’s Tmall.

Honor, a largely independent unit of Huawei, has dealt predominantly with producing budget smartphones which have typically been sold online.

According to Huawei, 20 million Honor handsets were sold last year which is around a third of the sales with Xiaomi sold during the same period (60 million).

During the release, George Zhao, Huawei’s marketing director and Jeff Zhang, Alibaba vice president alluded to an increase in corporate ties between the two companies, but did not go into detail.

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