Yu Chengdong: AT&T Missed Huawei's Losses from U.S. Operators

【World Wide Web Reporter Zhang Zhiying】 On the first day of CES in 2018, the first step for Huawei’s mobile phone to enter the US market was somewhat unsatisfactory. Huawei’s mobile phone failed to reach a cooperation agreement with AT&T. This news immediately attracted the attention of the media and the industry, because Huawei's cooperation with US operators is seen as an extremely critical step in its entry into the US mobile phone market. Huawei's response at CES has also become a focus of concern for many people.

According to foreign media Moblile World Live, Huawei consumer BG Yu Chengdong stated at CES that this is a loss to Huawei, a loss to the U.S. operator and a loss to U.S. consumers. Huawei did not mention the details of the operators. Huawei believes that in the past five years, it has proved its strength by launching high-end products in the global and US markets.

"Huawei is now continuing to discuss with operators around the world. Of course, this also includes US operators. We have found that in the past we must break through cooperation with operators in various places. Depending on the conditions of different markets, we need at least 2 to 5 on average. Year of the year," Huawei spokesperson Bill Plummer said at the CES.

It is understood that Huawei's flagship Mate 10 Pro will still be open for sale on February 4 in Amazon, Best Buy, Microsoft, NewEgg, B&H and other stores. The sales model is similar to that of Huawei Glory Mobile. In other words, Mate 10 will compete with the Glory Series for consumers' attention in the same channel. However, Bill Plummer does not think that the two will compete with each other, because the positioning of the two is not the same, and consumers who pursue a higher quality experience will choose Mate 10.

Yu Chengdong had previously mentioned in an interview with foreign media that Huawei hopes to become the world’s second-largest mobile phone brand within the next two years and be the world’s number one within five years. Given the slowdown in domestic market demand, it is foreseeable that the US market will assume an important growth task for Huawei. Therefore, Yu Chengdong’s attitude toward the U.S. market is very positive. He said that the Middle East and U.S. markets will take off. "A lot of manufacturers do low-end aircraft in the United States is meaningless because the United States is a high-end market."

However, on the other hand, there is media coverage today that “18 U.S. lawmakers have sent a joint letter to the Federal Communications Commission (FCC) Chairman Ajit Pai”. This e-mail requests the FCC's cooperation with Huawei and U.S. operators. The cooperative relationship was investigated. Some media believed that the e-mail resulted in a collaborative abortion between the two parties.

In 2012, the US Congress once issued a report saying that it was concerned about the security of Huawei's equipment. In 2013, when the then U.S. President Barack Obama signed the bill, the relevant U.S. government authorities must not purchase information technology systems privately, especially IT equipment from China. This basically locked the possibility of Huawei selling network equipment to the US market. Huawei's series of acquisitions in the US market failed. In this regard, Yu Chengdong had said in an interview before the media that Huawei’s consumer business had no political issues in the United States. It was only that the organization had adjusted slowly and the team was not strong enough. Huawei believes Huawei will not have any political problems in its consumer-oriented mobile products.

Yu Chengdong hopes that Huawei can make breakthroughs in the U.S. operator channel, because the U.S. mobile phone market has always been dominated by carrier channels, and telecom operators are controlling more than 80% of the smartphone market. If you have mastered AT&T operators, you can achieve further advantages in terms of price and channel.

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