Via the WSJ:
“A Chinese technology giant, whose telecom networking equipment is shut out of the U.S. due to security concerns, is bringing its high-end smartphone to American consumers for the first time…Targeting the low-end segment, where margins are thin, doesn’t fit well with Huawei’s attempt to move upscale and sell more expensive phones. “The U.S. device market is significant for Huawei,” a Huawei spokesman said. “We are patient, however, and we measure our success over the long term.”
Huawei’s conundrum is unenviable. I do wonder if it’s worth it for them to emulate Toyota and Honda: establish a mid-market phone brand that gets them users, and then, after they’ve built up trust – and assuaged Congressional doubts – move upmarket, possibly through the introduction of a new, differentiated line of phones, akin to Toyota’s Lexus or Honda’s Acura.