10/28/2015

Huawei's High-End Mobile Phone Market Desolate, It's Difficult To Continue The Mate7 Legend

Mate S listed two months, did not expect the buying and staged as scheduled, domestic mobile phone price of 4,000 yuan in the first impact of the flagship products and false starts.

September 2, 2015, the 8th, Huawei has in Berlin, Hangzhou, China released the latest flagship Mate S. P7 explosion models of virtue, Mate 7, Huawei obviously impact the higher end of the market. Earlier, the price of $ 515 a Mate 7 created panic buying stock, a premium of up to 30% of a miracle, Huawei Mate S is priced at $ 660, $ 600 bear the impact of the high point of the mission.


However, sales to date in 50 days, Mate S Mate failed to replicate the legendary 7 years ago, buying a premium failed to continue to be staged. According to Taobao entire network reference price display, less than two months time, Mate S whole network average price has dropped to $ 570 from $ 650.

Reporters on Mate S sales consulting Huawei, has not been clearly answered. But many of Huawei insiders told reporters: "Mate S, does not ideal, there are internal reflection."

Mobile China League Secretary old Yao told reporters: "mobile high road has never been smooth, firm and insist on high-end brands need toughness, Huawei is suffering growing pains."

Sales situation is not ideal

September 2015, Gartner published a research report for the Chinese market. Lu Jun, principal analyst at Gartner width told reporters: "the first half of 2015, China smart phone market in the first half 2014 compared to the average price improved by 25% year on year."

Chinese smart phone prices generally improved, the average price of different mobile phone brands to enhance different amplitudes, for commercial secrets, Gartner does not disclose the mobile phone manufacturers to enhance the rate. But Lu Jun wide introduction: "where the average price of Apple's mobile phone upgrade about 25%, while Huawei cell phone is much higher than the proportion of the average price, however, the average price of millet is still in decline.."

It is worth mentioning that the Huawei average price increased dramatically, the credit can not be separated Mate 7. September 2014, Huawei released this 4100mA battery with a 6-inch screen phone, priced $ 515, which is priced more than 500 US dollars Huawei's first flagship.


Previously, Huawei has released models priced at more than 500 US dollars, but never sold more than 100,000 units. In order to formally challenge the 3000 mark, Huawei Mate 7 all expected sales of 100 million units. Surprisingly, Mate 7 to complete the 1 million sales of only one month, during which, due to the Huawei did not prepare enough capacity, Mate high premium 7 lasted more than three months, the state of the stock continues to this day. As of August 2015, Mate 7 sales reached 5 million. Previously, Huawei's first $ 300 product P6, and close to $ 470 P7, respectively, to create a 4 million and 6 million in sales.

Huawei has the basic $ 500 files a firm footing, and Mate 7 sales of as much as $ 640, which gave Mate S $ 600 emboldened impact. As a new flagship machine, Mate S inherited Mate Hass chip, fingerprint recognition, signal location and other characteristics, but also played a number of chips feelings, appearance, rose gold, pressure screens.

But the reporter has learned that consumers generally Tucao "expensive", "battery capacity is small" compared to the Mate 7, Mate S battery from 4100mA fell 2700mA.

"Do not sell, the customer point of single rate, volume is very low, there is exercise alone, but also generally say expensive." A major electronics retail channel executives told reporters: "Mate S market reaction than Mate 7 Cihao Duo, and Mate 7 named to customers are to counter, to be still out. "

Reporters Taobao, Huawei Mall, Jingdong other online discovery platform data from sales Mate S, evaluation numbers are far lower than the Mate 7, P7, P8, and other products. Reporters on Mate S sales consulting Huawei, has not been clearly answered.

Growing Pains

In addition to pricing reasons Mate S's, Mate 7, P8 markdowns Mate S also impact the market. After Mate S release, Mate 7, P8 start markdowns. According to the latest data known consulting firm Sino market research released in September 2015, Huawei was the best-selling phone P8, to-head 4, Mate 7. Huawei insiders to provide the foregoing data, since the end of August 2015, Mate 7 new sales of over 100 million. In addition, Huawei OEM Google Nexus 6P, and the glory of the series recently also continue to create surprise setback to Huawei Mate S did not have significant impact on the overall rhythm.

. "In fact, if Mate S price cuts, it would be better," the aforementioned channel executives told reporters: "If the store has a very clear intention of our customers, we will consider the price discount to facilitate the transaction." However, the executives said: "generally very less this way, Huawei prevent unauthorized price channels, Huawei unannounced visits if caught, will be punished. "

Reporter survey found that the current Huawei Mall, Dixon pass and Suning, Gome, Beijing Business Hall, Mate S price is still $ 650. But the United States online, Jingdong, Taobao Mate S were cut prices, the United States and its Chinese online store Taobao part of the price even lower than $ 560.

However, in the old phone China League Secretary-General Yao opinion, "should now look stock, Mate S and there is not much pressure on the stock, Huawei should not cut prices. While prices may bring sales and profits, but not conducive to the accumulation of high-end brands. Station stable high-end brands need toughness and perseverance. "old Yao believe that Huawei should insist on high-end brand advocacy and resource inputs.

Samsung may be a possible reference case. 2012, while in 2013, the rapid rise of Samsung smart phones, two years, Samsung have annual advertising costs more than 10 billion US dollars, 2013 is $ 14 billion more to become the world's largest advertising gold master.

2013 officially enter the high-end market, Huawei, Samsung and other competitors less than the many setbacks, accumulation, for brand building, pricing and other convenience do not have enough experience. After Mate S, Huawei Mate 8 coming soon, this is equipped with the latest Huawei Hass chip phone is Huawei's high hopes. After a try after Mate S, Huawei Mate operations for 8 may be more mature. According to Huawei insider said: "The boss (Ren) regularly beat and let the internal self-reflection."

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