Huawei Set To Stop Manufacturing Low-end Smartphones - See Why!

Huawei has announced that it will no longer make low-end smartphone as part of a restructuring plan to beef up sales and profits. Yes, low-end Huawei smartphones are about to go extinct. As of now Huawei is Known to be the world’s 3rd largest smartphone maker. Of course, that also makes it the largest Chinese smartphone maker.

They made mention of going on with mid-range device and upper smartphone from now on. Huawei says:

    “We are giving up the very low-end devices because the margin in this is extremely low, and it’s not making enough profit for us”

Although Huawei isn’t the first smartphone maker to announce an abandonment of the low-end market. The allure of becoming the Android equivalent of Apple is strong. HTC and Sony have attempted to follow through on that allure, with little success.



Back in 2014, Huawei announced a cut in production of low-end devices. And now, the brand has followed through on the logical path following that move. BlackBerry also ditched budget smartphones in 2013, but that strategy hasn’t yielded much results either. These brands are still struggling.

Things might be different for Huawei though. They are the world’s 3rd largest smartphone maker afterall. That is some leverage. All the other brands that have attempted to ditch the low-end have been companies undergoing financial struggles.

Though Android smartphones have not been very profitable (Apple alone makes over 90% of the smartphone industry’s profits), Huawei is not exactly in the league of struggling phone makers though, so perhaps they can pull this off.

If they do pull it off, perhaps one day, they will abandon the mid-range too and foxus only on making high-end devices. But only time will tell.

Let See How It Goes