Huawei Plans Big Push to Sell Its Phones, Wearable Devices in U.S. After legislators branded it a national security threat, the company is planning a campaign to win over U.S. consumers.

By Reuters

This story originally appeared on Reuters

Two years after U.S. legislators branded it a national security threat, China's Huawei Technologies Co Ltd is planning a campaign to win over U.S. consumers, rolling out new mobile phones and wearable devices backed by a marketing effort.

China's second-largest smartphone maker, already with more than $40 billion in annual revenue from a wide range of telecom gear and products, is preparing to introduce Americans to several of its smartphones and wearable devices this year, including its youth-oriented "Honor" phone, Huawei officials told Reuters.

The company's 2015 U.S. plans, which have not been previously reported, will encompass traditional advertising, online promotion and sports team sponsorships, said Huawei's U.S. spokesman Bill Plummer.

Huawei is changing its approach to marketing as it tries to shed its image as a purveyor of cheap technology products - a common perception issue for many Chinese companies. It's an important shift for a company that for years had been single-mindedly focused on engineering and relatively dismissive of consumer branding.

In December, it touted its new Honor 6 Plus phone on a billboard in New York's Times Square. Plummer said that was "a sign of things to come."

He declined to say how much Huawei will spend on its new marketing campaign or what sports team, or teams, it had in mind. It already sponsors London soccer club Arsenal, cricket teams in India and rugby clubs in Australia.

New Smartwatch

At the Mobile World Congress over the weekend in Barcelona, Huawei took the wraps off a smartwatch that will be sold in over 20 countries including the U.S.

Huawei now intends to appeal directly to consumers with several new phone models, both low end and high end. It hopes to secure deals with carriers, selling online through marketplaces, such as the one operated by Amazon.com, and on its own fledgling gethuawei.com U.S. direct-sales website.

It's unclear how open the carriers, who dominate U.S. sales, would be to carrying phones from Huawei, a brand that remains unknown to the majority of American smartphone users. Reviews of its high-end phones, which can cost hundreds of dollars without a plan, have been generally positive.

Still, the U.S. market is dominated by Apple Inc and Samsung Electronics. None of the four biggest U.S. carriers - Verizon, AT&T, Sprint or T-Mobile - currently sell Huawei phones on their websites and all declined to say whether they have had talks with the Chinese company.

Huawei said in 2013 it would focus on other markets after its products were labeled a national security risk in a U.S. Congressional report, which said Beijing could use Huawei equipment for spying. Huawei denied the report, but Chief Executive Ren Zhengfei, who founded the company after leaving the Chinese military, told reporters at the time he felt stuck in a U.S.-China trade war.

A White House-ordered review found no evidence of spying.

Lawmakers' concerns revolve primarily around Huawei's networking equipment. And analysts say that a lack of brand recognition is a bigger hurdle for Huawei's smartphone ambitions than pressures from Washington.

Huawei currently has less than 1 percent of the U.S. market, according to research firm IDC. But it can perhaps draw inspiration from China's ZTE Corp, which has gained 6.4 percent of the U.S. market by selling cheaper smartphones and working with second-tier carriers like Boost Mobile, according to Ramon Llamas, a research manager at IDC.

Online sales, particularly as no-contract plans that require consumers to purchase a full-price phone gain in popularity, represent perhaps the best option for Huawei, said Gartner analyst C.K. Lu, adding that he sees it having a tough time signing carriers.

"The U.S. market is tough for anybody except Apple and Samsung," said Lu.

Huawei's plan to broaden its U.S. offering is part of a campaign for "normalizing" perceptions of Huawei in America and elsewhere, said Plummer.

Though he declined to spell out what normalization entailed, most public discussion of the company has centered around the debate of whether its equipment allows China to spy on the United States, and until now Huawei has kept a low profile.

Other Chinese companies still prefer that route: another major Chinese handset maker, Xiaomi, has said it will take its first steps onto U.S. soil without smartphones, choosing instead to sell earphones and other accessories to test the market.

(Additional reporting by Malathi Nayak; Editing by Martin Howell)

Wavy Line

Editor's Pick

A Leader's Most Powerful Tool Is Executive Capital. Here's What It Is — and How to Earn It.
Lock
One Man's Casual Side Hustle Became an International Phenomenon — And It's on Track to See $15 Million in Revenue This Year
Lock
3 Reasons to Keep Posting on LinkedIn, Even If Nobody Is Engaging With You
Why a Strong Chief Financial Officer Is Crucial for Your Franchise — and What to Look for When Hiring One

Related Topics

Business News

7 of the 10 Most Expensive Cities to Live in the U.S. Are in One State

A new report by U.S. News found that San Diego is the most expensive city to live in for 2023-2024, followed by Los Angeles. New York City didn't even rank in the top 10.

Business News

More Americans Are Retiring Abroad, Without a Massive Nest Egg — Here's How They Made the Leap

About 450,000 people received their social security benefits outside the U.S. at the end of 2021, up from 307,000 in 2008, according to the Social Security Administration.

Business News

Lululemon Employees Say They Were Fired for Trying to Stop Shoplifters

Two Georgia women say Lululemon fired them without severance for trying to get thieves out of the store.

Business News

Woman Ties the Knot at White Castle Almost 30 Years After the Chain Gave Her Free Food as a Homeless Teen

Jamie West was just 12 years old when she ran away from the foster care system.

Business News

New York Lawyer Uses ChatGPT to Create Legal Brief, Cites 6 'Bogus' Cases: 'The Court Is Presented With an Unprecedented Circumstance'

The lawyer, who has 30 years of experience, said it was the first time he used the tool for "research" and was "unaware of the possibility that its content could be false."