Huawei will be capitalising on artificial intelligence (AI) as the future of technology with 5G as the backbone of future connectivity, says David Kim, Brand Director, Consumer Business Group, Huawei.
"You know us as a network company. You know us as a smartphone manufacturer who is growing very fast.. But there is a little bit more to this," said Kim at a year-end celebration for the Huawei Consumer Business Group.
Among the differences is that Huawei is privately-held and employee-owned, and invests 10-15% of its revenues in research and development every year, Kim said. The company also believes in co-creating value with partners.
Beyond the revenue numbers, Kim noted that the smartphone business has become No. 3 in less than eight years, though the lion's share of revenue for the US$75 billion company is still its carrier and network business. Brand awareness outside China has grown over 330% from 2011 to 1H17, while brand consideration outside China - the likelihood someone will buy a Huawei device - has grown over 2,000% over the same period.
"We're growing faster in value than in shipments," he said, pointing out that Huawei has a higher share in the premium phone segment of the smartphone market globally. Huawei's total market share for smartphones was 9.3% in Q216 and 11.3% in Q217, whereas its premium device market share has jumped from 5.8% to 14% over the same period, an increase of 141%. The key is adding value not for the sake of being innovative, but to address pain points in smartphone usage, he said.
"We understand that it is not just a rat race to win," he said. "It is not about following our competition. We have to find our own way and it will be a very different way."
The three main pain points that Huawei has found are that smartphones tend to slow down over time; the camera experience is unsatisfactory; and that battery life is too short. The company introduced the power-efficient Kirin 970 AI chipset and upgraded its EMUI software to speed up the smartphones while improving the battery and camera experience, Kim said. The company also works with external suppliers to ensure consistent high quality standards for third-party components.
"If you don't get the consumer as your biggest brand ambassador there is no way to win this," he said.
When it comes to AI, Huawei's strategy is to work on device-based AI as opposed to cloud-based AI, as there may be situations where the device cannot be connected to the cloud, or where sensitive information might best remain on the device.
"It's not about replacing the decision-making, what the human is doing," Kim stressed. He explained that people think they make 300 decisions a day when they actually make many more decisions, most of them unconscious and automatic. "This is the area where AI can help," he said.
The company focused on image recognition with the Kirin 970 AI chipset and can easily use it for other sensory capabilities in future, Kim said, such as a fire alarm.
At the same event, Cheng Jiangfei, Country Head, Singapore's Huawei Consumer Business Group, said that the brand, channel and products are all headed for success in Singapore. "We have consolidated retail ground and sharpened the portfolio," he said.
"You know us as a network company. You know us as a smartphone manufacturer who is growing very fast.. But there is a little bit more to this," said Kim at a year-end celebration for the Huawei Consumer Business Group.
Among the differences is that Huawei is privately-held and employee-owned, and invests 10-15% of its revenues in research and development every year, Kim said. The company also believes in co-creating value with partners.
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| The Huawei Consumer Business Group has grown rapidly, both in terms of revenue and shipments. |
Beyond the revenue numbers, Kim noted that the smartphone business has become No. 3 in less than eight years, though the lion's share of revenue for the US$75 billion company is still its carrier and network business. Brand awareness outside China has grown over 330% from 2011 to 1H17, while brand consideration outside China - the likelihood someone will buy a Huawei device - has grown over 2,000% over the same period.
"We're growing faster in value than in shipments," he said, pointing out that Huawei has a higher share in the premium phone segment of the smartphone market globally. Huawei's total market share for smartphones was 9.3% in Q216 and 11.3% in Q217, whereas its premium device market share has jumped from 5.8% to 14% over the same period, an increase of 141%. The key is adding value not for the sake of being innovative, but to address pain points in smartphone usage, he said.
"We understand that it is not just a rat race to win," he said. "It is not about following our competition. We have to find our own way and it will be a very different way."
The three main pain points that Huawei has found are that smartphones tend to slow down over time; the camera experience is unsatisfactory; and that battery life is too short. The company introduced the power-efficient Kirin 970 AI chipset and upgraded its EMUI software to speed up the smartphones while improving the battery and camera experience, Kim said. The company also works with external suppliers to ensure consistent high quality standards for third-party components.
"If you don't get the consumer as your biggest brand ambassador there is no way to win this," he said.
When it comes to AI, Huawei's strategy is to work on device-based AI as opposed to cloud-based AI, as there may be situations where the device cannot be connected to the cloud, or where sensitive information might best remain on the device.
"It's not about replacing the decision-making, what the human is doing," Kim stressed. He explained that people think they make 300 decisions a day when they actually make many more decisions, most of them unconscious and automatic. "This is the area where AI can help," he said.
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| Kim discusses innovations in smartphone photography, including Huawei's partnership with Leica. |
The company focused on image recognition with the Kirin 970 AI chipset and can easily use it for other sensory capabilities in future, Kim said, such as a fire alarm.
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| From left: Brand representatives holding the HUAWEI nova 2i, Porsche Design HUAWEI Mate 10, HUAWEI Mate 10 and HUAWEI Mate 10 Pro, and HUAWEI P10, together with Cheng. |
At the same event, Cheng Jiangfei, Country Head, Singapore's Huawei Consumer Business Group, said that the brand, channel and products are all headed for success in Singapore. "We have consolidated retail ground and sharpened the portfolio," he said.
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Read the TechTrade Asia blog post about Huawei's welcome for the first Singapore customers of the Porsche Design Huawei Mate 10
Hashtag: #HuaweiSGParty
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