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HUAWEI TECHNOLOGIES CO., LTD. www.huawei.com Transformation „ Leadership „ Cooperation - Huawei's Device Strategy 2011 Huawei Global Analyst Summit

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Page 1: Transformation „ Leadership „ Cooperation · HUAWEI TECHNOLOGIES CO., LTD. Transformation „ Leadership „ Cooperation - Huawei's Device Strategy 2011 Huawei Global Analyst

HUAWEI TECHNOLOGIES CO., LTD.

www.huawei.com

Transformation „ Leadership „

Cooperation

- Huawei's Device Strategy

2011 Huawei Global Analyst Summit

Page 2: Transformation „ Leadership „ Cooperation · HUAWEI TECHNOLOGIES CO., LTD. Transformation „ Leadership „ Cooperation - Huawei's Device Strategy 2011 Huawei Global Analyst

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 2

Huawei Device Position & Goal

A top device vendor, consumer-centric & close-to-

operator

Handset: Top 5 leading handset vendor worldwide

by 2013

MBB Device: Leading beyond population

Home Device: Leading connected home solution

Goal

One of the four key businesses of Huawei Group

An important part of the cloud-pipe-device

solution

Position

Page 3: Transformation „ Leadership „ Cooperation · HUAWEI TECHNOLOGIES CO., LTD. Transformation „ Leadership „ Cooperation - Huawei's Device Strategy 2011 Huawei Global Analyst

Where are we now?

Where are we now?

Page 4: Transformation „ Leadership „ Cooperation · HUAWEI TECHNOLOGIES CO., LTD. Transformation „ Leadership „ Cooperation - Huawei's Device Strategy 2011 Huawei Global Analyst

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 4

Consistent Growth

$4.5 billion sales revenue and 120 million units shipment in 2010

$6 billion sales revenue in 2011 (forecast)

Sales Revenue

(USD in billions)

2006 2007 2008 2009

1.1

2.2

3.5 3.6

2010 2011E

4.5

6.0

Page 5: Transformation „ Leadership „ Cooperation · HUAWEI TECHNOLOGIES CO., LTD. Transformation „ Leadership „ Cooperation - Huawei's Device Strategy 2011 Huawei Global Analyst

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 5

2010 Highlights ‟ Handsets

58% growth

100+ million units

Page 6: Transformation „ Leadership „ Cooperation · HUAWEI TECHNOLOGIES CO., LTD. Transformation „ Leadership „ Cooperation - Huawei's Device Strategy 2011 Huawei Global Analyst

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 6

2010 Highlights ‟ MBB Devices

No.1 multi-mode LTE

100+ million units

Most innovative Mobile WiFi

Page 7: Transformation „ Leadership „ Cooperation · HUAWEI TECHNOLOGIES CO., LTD. Transformation „ Leadership „ Cooperation - Huawei's Device Strategy 2011 Huawei Global Analyst

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 7

2010 Highlights ‟ Home Devices

400% in STB

100+ million units

Page 8: Transformation „ Leadership „ Cooperation · HUAWEI TECHNOLOGIES CO., LTD. Transformation „ Leadership „ Cooperation - Huawei's Device Strategy 2011 Huawei Global Analyst

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 8

2010 Highlights ‟ Expansion

>200%

>100%

Page 9: Transformation „ Leadership „ Cooperation · HUAWEI TECHNOLOGIES CO., LTD. Transformation „ Leadership „ Cooperation - Huawei's Device Strategy 2011 Huawei Global Analyst

How to achieve

our goal?

Page 10: Transformation „ Leadership „ Cooperation · HUAWEI TECHNOLOGIES CO., LTD. Transformation „ Leadership „ Cooperation - Huawei's Device Strategy 2011 Huawei Global Analyst

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 10

Our Transformation

Brand

Channel

Product

Consumer Channel

Operator

Page 11: Transformation „ Leadership „ Cooperation · HUAWEI TECHNOLOGIES CO., LTD. Transformation „ Leadership „ Cooperation - Huawei's Device Strategy 2011 Huawei Global Analyst

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 11

Our Transformation (Cont.)

Open Market

100 Billion

ODM

20 Billion

OEM

40 Billion

Operators’

Brand Co-brand

Operator Channels

+ Brand

Channel

Huawei Brand

Distributor

Channels

+

+

Page 12: Transformation „ Leadership „ Cooperation · HUAWEI TECHNOLOGIES CO., LTD. Transformation „ Leadership „ Cooperation - Huawei's Device Strategy 2011 Huawei Global Analyst

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 12

Brand Stage

Brand Awareness Brand

Preference

Brand

Loyalty

Top 5 leading

handset vendor

worldwide by 2013

2011

Brand Intelligence

and Strategic brand

activities

Strategic products &

brand key regions

(Tier1)

Focus

China, UK

2012

Reinforce brand

awareness and

engage target

consumer

Extend the brand

influence on Tier2

regions

Expand

USA, Japan, India,

Indonesia, Australia

2013

Enhance the brand

influence globally

Leverage the

strength of the

Huawei brand to

gain traction in local

markets

Leverage

Globally

Page 13: Transformation „ Leadership „ Cooperation · HUAWEI TECHNOLOGIES CO., LTD. Transformation „ Leadership „ Cooperation - Huawei's Device Strategy 2011 Huawei Global Analyst

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 13

Channel Stage

Continue to enhance the operator market channel

Expand open market channel step by step

2011

Build up “sell-out”

capability in operator

channels

Pilot test in key

countries of China,

India and UK to build

up the open channels.

Pilot Test

2012 to 2013

Extend the pilot

experience of open

channels to top23

countries

More than 30% of

total sales revenue by

channels

Deploy

2014 to 2015

More than 45% of

total sales revenue by

channels

Roll out

Page 14: Transformation „ Leadership „ Cooperation · HUAWEI TECHNOLOGIES CO., LTD. Transformation „ Leadership „ Cooperation - Huawei's Device Strategy 2011 Huawei Global Analyst

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 14

Handset: Smart for All

Consumer-oriented ‟ provide full series of Flagship, Elite, Mass products

2015

2010

Sketch

map

Flagship

Elite

Mass

MM-FP

LMM-FP

ULC

Premium

Mid

Smart

Phone

Feature

Phone

Mass

MM-FP

LMM-FP

ULC

2010

Page 15: Transformation „ Leadership „ Cooperation · HUAWEI TECHNOLOGIES CO., LTD. Transformation „ Leadership „ Cooperation - Huawei's Device Strategy 2011 Huawei Global Analyst

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 15

Carrier Service

Multi Mode

Handset: Differentiation, a Way out of the Red Ocean

Differentiation Layer

Localization

Customization

Culture

Language

Preference

Fashion

Focus on user experience, enhance core capability Usability / Service & Apps /Speed / Display / Power consumption / Security

HW

OS

SW

Experience

Align with mainstream

technology, establish strategic

relationships with industry top

players

Chipset

OS

Key Comp.

Homogeneous Layer

Page 16: Transformation „ Leadership „ Cooperation · HUAWEI TECHNOLOGIES CO., LTD. Transformation „ Leadership „ Cooperation - Huawei's Device Strategy 2011 Huawei Global Analyst

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 16

Leading MBB Technology and Innovation

Lead in Technology

NGMN member and strong force in LTE

industry

Establish LTE Joint Lab, open cooperation

with infrastructure and chipset vendors

Full series, Multi-mode/Multi-band

Expand to M2M

3GPP, IEEE, OMA, ZigBee members, pull

to establish M2M related standards

Industrial grade modules covering main

industries

Leading in Automotive Telematics, AMR

and CE areas

Innovation

Mobile WiFi Wave Mobile WiFi Touch Mobile WiFi TV

More than Mobile WiFi: Colorful life

SmartPro

Personal Access Center Personal Media Center

HotSpot

= Plug and link in 15 seconds

Page 17: Transformation „ Leadership „ Cooperation · HUAWEI TECHNOLOGIES CO., LTD. Transformation „ Leadership „ Cooperation - Huawei's Device Strategy 2011 Huawei Global Analyst

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 17

Leading Connected Home Total Solution

Consumer: One-stop , easy use

− Integrated Services

− Flexible & cable-free connection

− Across-device PIM, Media

management and share

Operator: Reduce TCO, gain

revenues

− Unified network management, user-

self diagnostics and management

− Gain revenues from media

distribution, content storage, control

etc.

App & Service Cloud Management Cloud

Control &

Auto Center

Access

Center

Media

Center Indoor

Connection

2 Clouds

3 Centers

Indoor Connection

Page 18: Transformation „ Leadership „ Cooperation · HUAWEI TECHNOLOGIES CO., LTD. Transformation „ Leadership „ Cooperation - Huawei's Device Strategy 2011 Huawei Global Analyst

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 18

Cloud-Pipe-Device Synergy

HUAWEI DSM

Cloud

Pipe Service-aware

High Performance

Data Monetize

Device Management

Offload

App Integration

PIM

Content/App Pushing

3-Screens

User-aware

Device

Page 19: Transformation „ Leadership „ Cooperation · HUAWEI TECHNOLOGIES CO., LTD. Transformation „ Leadership „ Cooperation - Huawei's Device Strategy 2011 Huawei Global Analyst

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 19

9 R&D centers - U.S: RF, OS, Chipset

- EU: ID, Innovation…

- Japan: Electro-component, MD

- India: Software

- China: Platform…

Coperation with Local SP/CP

Deploy HiSpace in Russian, Venezuela (Spanish), Middle East (Arabic) etc.

16 regional headquarters, operations in 140+ countries

55% R&D employees

5 customer-oriented

product planning centers - EU

- USA

- Japan

- India

- China

Global Capabilities Layout

Well Organized

R&D

International

Resources

Page 20: Transformation „ Leadership „ Cooperation · HUAWEI TECHNOLOGIES CO., LTD. Transformation „ Leadership „ Cooperation - Huawei's Device Strategy 2011 Huawei Global Analyst

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 20

Building a win-win ecosystem

Build a win-win ecosystem through strategy alliance with

design houses, hardware and software providers

Hardware

Handset

MBB Device

Home Device

Preferred Solution

Design

House

EMS

Chipset Key

Component

OS Application

Page 21: Transformation „ Leadership „ Cooperation · HUAWEI TECHNOLOGIES CO., LTD. Transformation „ Leadership „ Cooperation - Huawei's Device Strategy 2011 Huawei Global Analyst

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 21

Transformation, Leadership, Cooperation

Experience

Capability

Cooperation

Brand

Channel

Products

TOP5

Page 22: Transformation „ Leadership „ Cooperation · HUAWEI TECHNOLOGIES CO., LTD. Transformation „ Leadership „ Cooperation - Huawei's Device Strategy 2011 Huawei Global Analyst

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 22

Simple is Smart, Simple as Smart, Smart for Simple!

Page 23: Transformation „ Leadership „ Cooperation · HUAWEI TECHNOLOGIES CO., LTD. Transformation „ Leadership „ Cooperation - Huawei's Device Strategy 2011 Huawei Global Analyst

Thank you www.huawei.com

Copyright© 2011 Huawei Technologies Co., Ltd. All Rights Reserved.

The information contained in this document is for reference purpose only, and is subject to

change or withdrawal according to specific customer requirements and conditions.