(FinancialPress) — Huawei, the giant chinese phone manufacturer, is ready to set sail towards the U.S. in partnership with AT&T. Reports state that they are gearing up to launch their flagship phone in American soil during February 2018.
The Huawei/AT&T deal has been in the works for over a year now. During the process, both companies held confidential meetings and sent undercover researchers to get to know the U.S. market.
The partnership marks the first time a major U.S. phone carrier will bundle a Huawei along with its main service. The Huawei Mate 10 – the phone in question – has been modified to meet U.S. standards.
Part of the undercover research process consisted of the company‘s U.S.-based employees surveying telecom stores, Best Buy and Walmart to observe the behaviors and habits of the American consumer.
One of the major sticking points for the Asian giant is the lack of name recognition in North America. To alleviate that, they will send over $100 million in marketing through 2018, informed Richard Yu – head of consumer electronics for the company.
The revealed budget will put Huawei only behind Apple and Samsung in terms of ad expenditure.
The news come at an interesting time for the market, as market analysts recently downgraded their projections for Apple‘s flagship iPhone X shipments for Q1 2018. They cited lower-than-expected demand over the holiday shopping period, as reported by Bloomberg.
JL Warren Capital LLC warned investors that shipments will suffer a 5 million drop from Q4 2017 to Q1 2018 – going from 30 million to 25 million shipped units. uarter.
“Bad news here is that highly publicized and promoted X did not boost the global demand for iPhone X,” note stated. Lacking innovation and a price viewed as somewhat excessive by customers were cited among the reasons for the drop in demand.
Even when its U.S. name recognition is minimal, Huawei boasts a 11% share in the global smartphone market, surpassed only by Apple (13%) and Samsung (22%). The company has 180,000 employees worldwide and its revenue rose by 32% in 2016, to reach $75 billion.