Huawei phones threaten global leadership of Samsung

In the last three years, Samsung Electronics Co. has been the world leader in the sale of smartphones, but she sees her position is threatened by its Chinese rival Huawei Technologies Co, which has been registering a rapid growth.
Known as a supplier of telecommunications equipment for global operators, Huawei has already surpassed the Samsung in China, the world's largest market, where 425 million smartphones must be sold this year. Globally, the company became the third largest manufacturer of smartphones in the second quarter, according to data from IDC. This is due, in part, to its ability to expand its market share in the Middle East and Africa, where the advance sales of smartphones surpasses that of any other region.
With 87% high in the recipe with smartphones in the first half of the year, Huawei provides that the Division profit more than double in 2015. If this growth rate continues, the Huawei hopes that will challenge the major competitors in this market: Samsung and Apple Inc.
"The best product and the best innovation are coming from Huawei. Neither Apple nor Samsung, "he said in July Richard Yu, who runs the consumer division of Huawei, including smartphones.
Huawei is trying to leave behind his reputation as a manufacturer of cheap phones to expand sales of higher end models, with higher prices. Last week, on consumer products fair IFA in Berlin, Huawei introduced its new model S Mate, which will cost at least 600 euros in Europe — your phone more expensive so far. He will have a touch screen of 5.5 inches that can distinguish between a light touch and a stronger grip, a feature similar to that, according to people familiar with the matter, must be included in the new iPhones that Apple must submit tomorrow.
The new cell phone can help Huawei to gain more ground against Samsung. The two companies compete in similar price segments and both manufacture equipment with the Android operating system, Google Inc.
The Samsung's global market share has been dropping in the face of competition with Huawei and other Chinese rivals in the last 12 months. In the second quarter, sales of smartphones from Samsung fell 2.3%, with their global participation of 25% for retreating 22%, according to research firm IDC. In contrast, sales of smartphones from Huawei grew 48% compared to the previous year, resulting in a market share of 8.9%. The company became the fastest growing competitor among the top five global manufacturers, according to the IDC.
Bhekinkosi Ncube, a legal consultant of 23 years in Johannesburg, has already had several smartphones from Samsung. In July, he bought for the first time a unit of Huawei, over the internet, paying $ 300 for Ascend model P7, high resolution screen and larger battery duration that the Galaxy A5, from Samsung, which in the same online store costs more. "Huawei is more cool than it used to be," he says.
In the Middle East and Africa, Huawei's market share more than quadrupled in two years, from 2.6% in the second quarter of 2013 to 11% in the second quarter of this year, while Samsung's market share fell from 53% to 32% over the same period, according to IDC.
With the Chinese market of smartphones getting more saturated, the Middle East and Africa are becoming increasingly important. In the second quarter, the total sales of smartphones in the Middle East and Africa jumped 60 percent, according to IDC.
"With aggressive expansion plans in the region, especially in Africa, Huawei will continue to be a threat to Samsung," said Nabila Popal a, IDC research manager for the Middle East and Africa.
Samsung does not comment about its loss of market and how do you plan to reduce competition from Huawei.
Ashraf Fawakherji, who heads the Division of Huawei's smartphones in the Middle East, began working in the Chinese company in early 2013, after managing the Samsung's cellular unit in the Persian Gulf for six years. He said that to compete with the capitalized Samsung, Huawei had to use creativity in its marketing.
The first campaign team on Facebook in 2013 asked for people to comment "Huawei". Thousands of people in the region sent their voices recorded to make smartphones Huawei for free.
Huawei has hired Nancy Ajram, a popular singer in the Arab world. In April, the company launched an online contest asking for fans to submit videos singing one of the songs from Ajram. The finalists sang in front of the star and the winner received $ 25,000 in gold.
Huawei is also gaining market in parts of Europe, where she is sponsoring professional teams of football as the Spanish team Atlético Madrid and the Italian AC Milan. In the second quarter, its market share in Spain rose from 6% to 10%, and in Italy, of 7% to 9%, according to IDC.