Huawei's entry into the notebook truth: PC is profitable and only a small fight

Analysts believe that Huawei is in urgent need of a PC product to support supply chain integration, channel development, talent cultivation, and brand building. Reporter Ma Yan reports that recent news about Huawei's potential entry into the laptop market has sparked widespread speculation. However, Huawei's terminal division responded to the "Securities Daily" by stating, "We will not comment on market rumors." Despite this, according to the "Securities Daily," although the news may have some elements of speculation, it's widely believed that Huawei's decision to enter the PC market is likely to be confirmed. In fact, China already has a thriving tablet industry. According to sources, the notebook computer Huawei plans to launch is a hybrid model, capable of functioning as both a laptop and a tablet. But with the PC market becoming increasingly saturated, many are questioning whether Huawei can truly make an impact. The PC Market: A Profitable Opportunity? According to IDC data, global PC shipments fell by 10.4% in 2015, reaching 276.2 million units. It was expected that sales would continue to decline in 2016 by around 3.1%. However, devices like Microsoft’s SurfaceBook, which feature detachable keyboards, are seen as potential drivers for growth. When accounting for these products, the overall PC market could see a modest 1–2% increase. This decline in shipments suggests that the PC market is highly saturated. Despite this, manufacturers have managed to maintain profitability by raising prices and improving product features. In other words, the PC market has become a competitive but profitable space. Wang Yang, research director at iSuppli China, believes that Huawei entering the PC market could be a profitable move. In an interview with the "Securities Daily," Wang noted that Lenovo's performance last year showed that laptops can be more profitable than smartphones. According to Lenovo's Q3 2015 financial report, the PC Group (including PCs and Windows tablets) generated $8 billion in revenue and $405 million in pre-tax profit. Meanwhile, the mobile business group reported a $30 million loss. Completing the Product Line to Boost Brand Image While the PC market is profitable, it's also highly competitive. New brands face significant challenges in breaking through. Unlike the smartphone market, where underdogs can rise quickly, the PC market remains dominated by established players such as Lenovo, HP, Dell, Asus, and Acer. Even Apple’s Mac sales have grown steadily without fundamentally altering the market landscape. Huawei’s goal to replicate its smartphone success in the PC space seems challenging. However, perhaps Huawei isn’t aiming for dominance, but rather to complete its ecosystem. As Wang explained, Huawei’s approach is similar to Apple’s—offering a full range of products from phones, watches, tablets, to PCs. Currently, Huawei has covered smartphones, tablets, and smartwatches, but lacks a PC offering. This gap needs to be filled to achieve a comprehensive product lineup. Although Huawei's smartphone business reached over 100 million units in 2015, the market is slowing down, making future growth difficult. Tablet and smartwatch sales are also not expected to drive massive growth. At Huawei’s 2015 market work conference, CEO Ren Zhengfei stated that the company aims to exceed $100 billion in terminal sales within five years. To reach this target, expanding into the PC market is almost inevitable. Wang Yang added that producing notebooks is cost-effective and allows Huawei to enhance its brand image by introducing new products and strengthening its presence in consumers' minds. A Risky Gamble? Some analysts argue that Huawei lacks the system integration capabilities of Apple, making it difficult to achieve seamless connectivity across all devices. Wang also mentioned that Huawei’s laptop might just be a small step in the broader strategy. Another analysis pointed out that Huawei currently has little presence in the PC market. At the same time, the company needs a PC product to strengthen its supply chain, develop channels, build talent, and enhance its brand. Regardless of the outcome, Huawei is taking a calculated risk, much like Xiaomi did before. Wang emphasized that Huawei isn’t targeting Xiaomi directly. Whether it's Xiaomi or Huawei, launching laptops won't guarantee the same success as their smartphone ventures. Compared to Apple’s seamless experience, Samsung’s Galaxy line offers a more relevant model for Huawei to follow. While Huawei's main consumer focus is still on phones and tablets, entering the PC market could help boost its brand value and premium positioning.

Cell Phone Stand Aluminum

Aluminum Cell Phone Stand, Durable Cellphone,Desk Cell Phone Stand Holder Aluminum Phone Dock Cradle,etc.

Shenzhen Chengrong Technology Co.ltd is a high-quality enterprise specializing in metal stamping and CNC production for 12 years. The company mainly aims at the R&D, production and sales of Notebook Laptop Stands and Mobile Phone Stands. From the mold design and processing to machining and product surface oxidation, spraying treatment etc ,integration can fully meet the various processing needs of customers. Have a complete and scientific quality management system, strength and product quality are recognized and trusted by the industry, to meet changing economic and social needs .

Aluminum Vell Phone Stand,Aluminum Cell Phone Desk Stand,Cell Phone Holder For Stand,Cell Phone Stands

Shenzhen ChengRong Technology Co.,Ltd. , https://www.laptopstandsupplier.com