One of the reasons why Chinese smartphone makers have been able to catch up to some of the more established players in the market like Apple and Samsung, it is because of their ability to produce extremely cheap devices, catering to emerging markets which don’t have the money to splurge on high-end phones, but are a populous market all the same.
Now Huawei was one of those companies who had no issues churning out cheap handset after cheap handset, but it seems that their time in the low-end segment is done. Speaking to Bloomberg, Huawei’s chief in the company’s consumer division Richard Yu confirmed that they will be giving up on the “very low-end” devices, simply because there is not much profit to be made.
According to Yu, “We are giving up the very low-end devices because the margin in this is extremely low, and it’s not making enough profit for us.” He also adds that Huawei will be focusing on their expansion into other markets. “The priority is Europe, China and Japan, where the economy is healthy and people are able to consume them.”
That being said, this move shouldn’t really come as a surprise as in recent years, Huawei has been making a bigger effort at creating more high-end flagships, such as the Nexus 6P for Google, and also working together with Leica to create smartphones with better camera optics.