Why Huawei has always lagged behind Apple?

 Two-horse race between Apple and Samsung became the battle Apple with Huawei. Manufacturer from China has gradually asserted its position, but things still are not enough.

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Huawei, once known by the business in the field of telecommunications equipment, is actively promoting investment in smart phone segment and gradually became the most influential force in the mobile market.

From a domestic manufacturer of China, Huawei has its reach in the international scope.

From a domestic manufacturer of China, Huawei has its reach in the international scope.

Richard Yu, CEO of the company did not hesitate to express the ambition to become the biggest smartphone vendor in the world. The company also optimistic about the prospects for success in the luxury goods segment, where Apple still dominates formidable.

After Huawei announced the annual financial report, the world has a clearer vision of what the company has been the impact on the smartphone market.

Strong growth but lower product prices Apple

2015, groups of Huawei Consumer Business, largely from the sale of smartphones and other smart devices, has a turnover of approximately 20 billion US dollars, up 73% over the previous year, with "more than 100 million smartphone intelligent "sold.

If merely taking $ 20 billion divided by 100, we estimate its phone each with an average price of about $ 200. Despite the fact that Huawei also sell other products to $ 20 billion in revenue in the consumer segment, the retail prices Per smartphone can be a bit higher, but the difference will be negligible.

In contrast, Apple's iPhone has an average price of about 600 dollars, much higher than the opponent.

Tim Cook must have realized the danger from Huawei.

Tim Cook must have realized the danger from Huawei.

Low profits

Although Huawei's total return is pretty good actually, margin reached 11.6% of sales only in 2015. However, Apple earned 71.23 billion US dollars and 30.5% profit figure this number (margin - indicators of business performance of a company).

With major funding source, with enough investment Apples system optimization help much higher profit margin. The airline spent $ 8 billion for the department of research and development (R & D), a large number of common conditions, but are too small compared to the huge annual revenue.

Analysts have said that operating profit in 2016 will decrease by Apple's expected revenue is low (overall impact of the market), while spending on research and development segment still increased.

Despite holding advantages, Apple still cautious

Recently, Huawei witnessed strong growth step and becoming a real threat to Apple. Phone maker recently introduced Chinese duo and P9 P9 Plus Product 6/4 day brings more advanced features than the iPhone 6S.

CEO Richard Yu confidence before Huawei's growth momentum.

CEO Richard Yu confidence before Huawei's growth momentum.

Slim Devices and better camera, besides superior screen. These are all important features bring different experience on a smartphone. Sure, Apple can not sit still before such a situation.