Some 80,000 visitors ventured to Barcelona to attend the annual congregation for the mobile-minded, the Mobile World Congress (MWC). Long gone are the days when one single theme dominated the show. My main impression of MWC was that compared with last year, there was surprisingly little true news. I see evolution not revolution, which is somewhat odd as the overall business environment is clearly changing faster than ever.
Of course, everybody again claimed that they are active in the obligatory fields of cloud, analytics, and customer experience. However, if anything, I feel this convergence of marketing messages creates too many platitudes and undermines the practical use case scenarios that define the mobile mind shift. I went to MWC with several questionsin mind, and my main takeaways of MWC are that:
Huawei hosted about 160 industry and financial analysts at its ninth annual analyst summit in Shenzhen, China in April 2012. The main takeaway for its consumer devices business was that consumer devices complete the end-to-end pitch for Huawei. Huawei showcased its growing capabilities across the wireless industry value chain. Most notably, Huawei made a foray into the smart devices domain with its own brand of smartphones and tablets. In 2011, Huawei shipped 20 million smartphones and 60 million mobile broadband devices like dongles. The smartphone market is already overcrowded with heavyweights such as Apple, Samsung, Nokia, and Motorola; thus, it might seem that Huawei may not be able to make a very profitable business from selling these devices. However, we believe that this move will bring indirect benefits to Huawei’s core Carrier Network division in the following two ways:
It spurs the uptake of smart mobile devices. Among all companies, Huawei is best suited to leverage manufacturing capabilities in its homeland, China, to mass-produce smart devices. Moreover, as it can manufacture processors in-house through its HiSilicon subsidiary, it can control and reduce the overall price of these devices. As price is a major buying criterion for consumers in regions like China, India, and the Southeast Asian countries, Huawei will be able to expedite the uptake of devices in these countries. Subsequently, the demand for data will increase and telecom operators in these countries will need to upgrade or roll out new technologies and networks (HSPA+, TD-LTE, FDD-LTE, dual-mode networks, etc.). This is where Huawei will benefit, as it will be able to position itself as an end-to-end supplier for telecom operators including hardware, professional and managed services, security solutions, servers, and storage.