Huawei’s Bold Strategy to Challenge Apple in the Premium Segment
Huawei, the Chinese tech giant, has developed a master plan to challenge Apple’s dominance in the smartphone market. After successfully overtaking Apple in the smartwatch market, Huawei is now targeting the premium smartphone segment in China, the world’s largest smartphone market. With strategic price cuts and aggressive promotions, Huawei is making its phones more affordable, giving Apple a run for its money. The company is offering discounts of up to Rs 23,000 on several of its smartphones to capture the attention of high-end customers.
Apple Dominates, But Huawei Is Gaining Ground
In the premium segment, Apple currently holds a dominant 52 percent market share in China. Huawei, in second place, controls 33 percent of this market. However, the competition is heating up, with Huawei’s sales growing by about 34 percent in the third quarter of the financial year. To further challenge Apple’s lead, Huawei has started offering significant price reductions on many of its high-end models. For instance, the Huawei Pura 70 Ultra (1TB) is now priced at Rs 1.06 lakh, down from its launch price of Rs 1.28 lakh, making it a more attractive option for consumers.
Huawei Makes Price Cuts on Foldable Phones to Compete
While Apple has yet to enter the foldable phone market, Huawei has already made its mark. The company is actively lowering the prices of its foldable smartphones, even though Apple does not currently compete in this category. For example, the Huawei Mate X5, launched in 2023, has seen a 19 percent price drop, now available for Rs 1.23 lakh. This price reduction is part of Huawei’s strategy to entice customers and make its foldable phones more accessible, especially as Apple remains absent in this market.
Huawei’s Success in the Smartwatch Market
Huawei has already made waves in the wearable tech industry by surpassing Apple as the leader in the smartwatch market. In the first three quarters of 2024, Huawei shipped 23.6 million smartwatches, securing a 16.9 percent market share. This achievement marks a significant shift, as Apple shipped 22.5 million units, capturing a 16.2 percent share during the same period. With this victory in the smartwatch market, Huawei is now aiming for the smartphone sector, positioning itself as a formidable competitor to Apple.
The Future of Huawei and Apple’s Competition
Huawei’s aggressive pricing strategy and expansion into new product categories demonstrate its ambition to take on Apple in the premium smartphone market. With significant discounts on high-end models and foldables, along with its growing presence in the smartwatch market, Huawei is rapidly establishing itself as a strong competitor. As Huawei continues to gain market share, the competition between these two tech giants is set to intensify.
