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Huawei beat Apple's largest global phone sales and became the world's second largest smartphone supplier this year, depending on market share at the end of the second quarter. The Chinese company's new goal is to first transfer Samsung to China by 2020.
"Next year we will be very close to the first figure, maybe we will be Samsung, and at least next year, maybe we have the opportunity to be the first number," said Richard Yu, Chief Executive Officer of the Huawei Consumer Division, on CNBC's exclusive interview.
Huawei talks about prefabricated phones, 5G technologies and expanded reality glasses. But this was not always a world-class company. In fact, Huawei did not even have its smartphone by 2010, three years after Apple first debuted with the first iPhone.
The company has become one of the largest technology companies in China thanks to the growth of mobile network equipment and is currently one of the largest global dealers in this market. It was also an original designer (ODM), which meant that it was designed and manufactured by other companies.
Innovation was the main premium for Huawei
In 2010, Huawei launched its first Android-powered smartphone named IDEOS, costing around 60 euros. Eight years later, the company will launch phones with original artificial intelligence and premium equipment for over 1,000 euros.
The switch from ODM to today's giant has been implemented by Richard Yu, who previously worked for Huawei Business Relationships (B2B) and, in 2012, became Director General of the Consumer Group. At that time, some market trends have allowed Yu to see Huawei's potential in the phone market, including switching from smartphones to smartphones and 4G mobile internet arrivals.
He has decided that Huawei will stop producing classical handsets and focus on high-end smartphones with more powerful batteries and larger screens, which is precisely consumer demand.
The manager says he likes to take risks, which helped Huawei to grow fast.
"I encourage the team to gain this ability to innovate, make daring innovations, do something that some people say is a little regrettable, provocate themselves and the industry," said Yu CNBC.
Future plans
Yu Artificial Intelligence (AI) will be the main technology that will lead to the next level of smart phones and help the company grow in the future.
"AI will come in. AI will be the driving force for all future services and will be easy to work on multiple devices, all applications will be connected." The biggest changes over the next ten years will be AI phone capabilities, "said Yu.
Huawei is currently working on a folding phone that will debut next year and be the first 5G phone company. Yu also said that the advanced reality glasses (AR) are also in the factory. These new technologies could provide Huawei's driving force behind growth.
In a September interview with CNBC, Samsung's CEO, DJ Koh, said that the company is changing the strategy for mid-range smartphones to offer their phones more innovative options at lower prices, which could help mitigate Huawei's threat. This strategy is evident in Galaxy A9, the world's first smartphone with a quad lens that was launched in October.
And Samsung will not be easy to beat. According to Counterpoint Research, it has fallen from the first position in the smartphone market three times over the last five years, usually by a quarter.
Neil Shah, Counterpoint Research Director, estimates that Huawei should sell from 30 to 40 million smartphones a quarter more to overcome Samsung.
However, Chah said that Samsung's sales could come from strong competition that could help Huawei to become the first number.
Yu ambitions are bigger than smartphones. They want Huawei to begin to develop new products, such as laptops and smart speakers. Yu aims to create an eco-system for smart devices.
"We want to take a leading role in the next ten years to become an integrated, intelligent solution," Yu told CNBC.
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