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Our global economic environment is very demanding. This reality requires flexibility in costs and productivity.
A vendor like Huawei paves its strong way aiming to become the top global smartphone vendor in five years’ time. In effect, the company can leverage its successive YoY rises in smartphone shipments.
According to ABI Research, to become a global electronics brand, the company will need to gain a strong foothold in the U.S. and western European markets.
On its attempt to expand its reach by creating its own chipsets and mobile operating system based on Android, one can expect that, its own chipsets for a number of its smartphone models may help it continue its upward trajectory. Huawei can avoid the need to rely on chipsets from IC suppliers, and can control its costs.
When it comes to create its own operating system, it is clear that, Huawei probably believes that it reached critical mass in terms of its volume sales and so now has the means to create its own ecosystem.
Huawei does not necessarily need to fall victim to the same mistake as its competitors like Samsung. The Chinese-based company can provide a viable ecosystem that focus on volume, new business models based around revenue share agreements and partnerships, while offering a range of devices to allow for customer modifications.