Search results for: “huawei”

  • UN Huawei + more things

    UN Huawei must be given equal opportunity to bid for 5G business | total telecomHoulin Zhao, secretary general of the International Telecommunications Union, told reporters from Reuters that 5G security remained of paramount importance but that there was no evidence to suggest that the use of Huawei’s network equipment should be restricted – the hasn’t read the UK government report on Huawei security flaws – the coincidence that Mr Zhao is Chinese is overlooked in the article. This also ignores issues around Huawei software engineering across its product range of network equipment with extensive backdoors built in that Huawei refuses to remove. The UN Huawei statement highlights the declining trust in UN bodies that have undergone state capture by China. More related content here.

    Apple’s Computer Vision Team is working on using Depth-based Touch Detection for Games & Virtual Keyboards – Patently Apple – depth based touch detection is important beyond the Minority Report style virtual keyboard interface. It could allow Apple engineers to design completely new ways of processing locative and contextual information mapped on the real world. It also means that we’re likely to be doing embarrassing gestures in the future. We will be closer to the idea of a web-of-no-web where the boundaries between the real world and the digital world are blurred and in some cases merged.

    Burger King under fire for ‘racist’ Vietnamese chopsticks ad | The Drum – really surprised Burger King made this mistake so close after the Dolce & Gabbana China debacle. One key consideration is that Yum Brands China that owns Burger King and KFC in China is a completely separate business. So Burger King might not be a truly global learning organisation. This happened in one of Burger King’s smallest markets – New Zealand is which is probably why it managed to sail under the radar of global brand vetting until it was too late.

  • Alibaba Tencent and Huawei + more

    Alibaba Tencent and Huawei will take on the west’s technology players and win, predicts Sorrell – Mumbrella Asia – Alibaba Tencent and Huawei may also end up being Galapagos type businesses, or being seen a  threat by the Party because of their power. It would also be Huawei at least is a WPP client….

    Ideas

    The Equality of Opportunity Project  – This introductory course, taught by Raj Chetty, shows how “big data” can be used to understand and solve some of the most important social and economic problems of our time

    Luxury

    Rich Kid Buys Girl 8-Foot Tall Costco Teddy Bear, Gets Rejected | What’s on Weibo – interesting skepticism on viral moments or memes

    Free and Easy’s American Dream – Ralph Lauren magazine – great bit of media analysis on cult Japanese style magazine Free and Easy

    Security

    Source: Deloitte Breach Affected All Company Email, Admin Accounts — Krebs on Security – just wow

    China Blocks WhatsApp, Broadening Online Censorship – NYTimes.com – the wrong question being asked. Instead why did it last so long? Expect WeChat usage to pick up in Hong Kong etc for cross border communications

    Software

    macOS 10.13 High Sierra: The Ars Technica review | Ars Technica – great in-depth review

    Technology

    Will Imagination Deals Deliver MIPS to China? | EE Times – interesting discussions on the Tallwood VC / Canyon Bridge deal and possible implications for the MIPS eco-system. Interesting that China sees more potential and security in MIPS than ARM….

    Digital Evangelist: Imagination Technologies sale to Canyon BridgeI rather expect that the Hertfordshire based business is likely to suffer the fate of Vertu and end up bankrupt and sold for scrap in less than two years because of mismanagement and the new owner having very little understanding as to just what they own and control  Imagination Technologies agrees £550m sale to Canyon Bridge | FT – the MIPS business goes to Tailwood VC (paywall)

  • Huawei expansion into smartphone market

    Huawei expansion into smartphone market has started to be reflected int their released their annual results for 2015 last week. By going through their press release library and annual reports I have tried to piece together a picture of their consumer business and how it has grown over time.

    Huawei isn’t like other businesses you might be used to in terms of corporate structure. It is based around worker participation in profits with Chinese colleagues benefiting from profit share. It is a private company so it’s numbers don’t have the same level of disclosure requirements as public companies. It’s books are audited by a reputable accounting  firm.

    I found some inconsistencies in the way information is disclosed. For a number of years Huawei used to quote US dollar equivalents to its numbers, but has stopped doing so in the 2015 report.

    Other inconsistencies:

    • High-end device sales are only listed for the past three years as the company started to focus on the premium marketplace
    • Honor sub-brand device shipments were disclosed for 2014 and 2015 as the brand filled the low-to-mid market segments Huawei’s range had previously extended down to
    • I only have two years worth of revenue numbers from Western Europe, if I get more I can then start looking at trends over time
    • In 2014, they disclosed the proportion of sales from e-commerce and the number of Huawei branded stores. In 2015, they disclosed the total number of retail outlets worldwide that sold Huawei phones

    Between the currency fluctuations and the slight changes in information there may be some errors in my numbers – please bare this in mind.

    I have outlined my charts below as JPEGs and have embedded a presentation at the bottom for convenience.
    Consumer devices shipped
    Consumer average revenue / device
    Huawei consumer business growth over time

    What does 2016 and beyond bring?
    Overall sector outlook
    Looking at forecasts from market analysts and The World Bank Huawei will experience tougher market conditions with lower growth forecast across major markets like China. Smartphone market maturity will mean lower exceptions of sector growth as well.
    Macro economic data
    As a presentation

  • The smartphone market and Huawei

    It is hard for anyone reading the media to believe that Huawei’s rise in the smartphone market was anything short of miraculous. In reality the roots of this rise go back at least six years. Back in 2010, Huawei was already shipping 3,000,000 smartphones. However since that time, the year-on-year percentage growth in consumer devices shipped by the company reduced from 82 per cent year-on-year growth to about 8 per cent growth in 2014.  This growth was initially driven by less sexy products like feature phones for China Mobile, DSL routers and 3G/LTE dongles.
    Huawei numbers
    In fact if we go back further to 2007, feature phones drove a 757 per cent growth in consumer devices shipped.

    2010 is quite crucial, Huawei Consumer Devices suffered a 32 drop in year-on-year growth in revenue / device going from $56 per device in 2009 to $38 in 2010. The margins per device then began to climb again during period from 2010 – 2014.

    January’s numbers discussed at CES don’t give us the total numbers of devices shipped by Huawei, but only smartphone numbers, so I haven’t calculated revenues for 2015, but they would represent a significant upswing from the 20+% growth enjoyed in previous years.

    Reading the Huawei coverage one would believe that the growth is being driven by developed markets and premium devices, but the truth according to the numbers found seem to be less clear. In between the years 2014 and 2015, the percentage revenue derived from Western Europe dropped from 11.3% to 10%, even as overall revenues grew. Much of this is driven by Southern European markets that had been hit hardest during the 2008 recession. It will be interesting to see how Huawei looks to crack Germany, the UK, France and the US.

    So what does this all mean?
    Huawei smartphones and watches are firstly just the most visible aspect of the company and not likely even the most profitable. Huawei equipment likely runs at least part of the internet network that brought you this page. They power mobile networks around the world (outside the US). They provide storage (very large boxes of hard disks) to banks and businesses around the world.

    Huawei Consumer Device numbers are reflective of wider technological change. In the space of the nine years that I looked, you could see the peak of the feature phone business, where Huawei was predominantly a domestic supplier. The rise of the mobile dongle to fill the gaps in free wi-fi networks and the rise of the smartphone/phablet which negated some of the mobile working laptops did around email, but also acted as tethered modems reducing the need of dongles.

    Huawei’s numbers are indicative of a successful fast follower strategy. Huawei learned the smartphone trade by first of all making badge engineered Android phones for T-Mobile. It then went out on its own. Each generation of phone improved in terms of industrial design and they built a direct to consumer channel over time.

    Xiaomi’s direct-to-consumer e-commerce strategy was transformative in the Chinese market and something that Huawei replicated with the Honor brand. Huawei hasn’t tried to build services in the same way that Xiaomi has and hasn’t ventured as deeply into the smart home.

    In terms of device numbers the company has successfully managed to displace both Samsung and Xiaomi in markets, but despite the ‘premium positioning’ it has taken a while to build the average revenue per device (ARPD). If the 20 billion dollar annual revenue announced at CES, only represents smartphone devices, then the ARPD (of $188) is still less than a third of what Apple enjoys with the iPhone.

    The smartphone market like dongles and DSL modems before it is moving rapidly towards maturity and lower growth. It will be interesting to see where Huawei’s business strategy goes next.

    How I got the data?
    The data quoted is based on numbers given out in Huawei’s annual reports from 2006 – 2014 and the Huawei Consumer Device press room where Consumer Device started to break out some of their own numbers. The types of numbers talked about vary from year to year. You can see a copy of my collated and calculated numbers here. When converting CNY to US dollars, I assumed an exchange rate of 1 yuan is 15 cents.

    More information
    Huawei annual report page
    Huawei Ships 108 Million Smartphones in 2015, Contributing to Annual Revenue Exceeding $20 Billion USD
    Total order value of Huawei Consumer in Western Europe exceeds 2 billion dollars
    Huawei Consumer Business Group Announces 1H 2015 Financial Performance
    Huawei Consumer Business Group Announces 2014 Financial Performance
    Huawei Consumer Business Group Announces Q3 2014 Financial Results
    Huawei Consumer Business Group Announces 1H 2014 Business Performance
    Huawei Consumer Business Group Ranked Third in Global Smartphone Shipments in 2013

  • Brand building for B2B PRs

    Brand building for B2B PRs is a write up of an interview that I did with Miles Clayton of Agility PR. We talked about the importance of brand building, client challenges and techniques.

    Participants:

    • Miles: Host (Agility PR)
    • Ged Carroll

    Miles: I’d like to welcome Ged Carroll, a guru on brand building and advertising working with major tech and consumer brands. He offers insight into the world of proper advertising: campaigns we know and love, and, where the industry is leading today.

    Welcome, Ged. Could you talk through what you’re doing at the moment and your current challenges?

    Ged Carroll: Thank you, Miles. I am currently wrapping up an engagement with Google Cloud, working with their internal creative agency as a temporary vendor contractor.

    My work focuses on brand building: out-of-home advertising, video advertising, and events. We look at how those creative experiences come to life through major trade shows and Google-hosted events. There is also sports sponsorship; for instance, the Formula E activation. Even though it’s a B2B brand, many tactics are exposed to a broader audience than just direct customers.

    Miles: That’s fascinating. Regarding brand building, something many brands under-invest in, could you explain why it is important and how it differs from brand activation or performance marketing? I’d argue performance marketing is the obsession in B2B, but why should brand building weigh higher?

    Ged Carroll: I’ll first address why brands focus on performance marketing, then explain brand building’s importance. Brands focus on performance marketing because they are measured on 90-day periods. They can simply say, “Here’s the money spent, here’s the result.” Measures include customer acquisition cost or engagement metrics along a marketing funnel. These seem like concrete measures.

    Why do brand building? Smaller B2B brands often hesitate because of what Professor Byron Sharp calls “Double Jeopardy”: smaller brands have less market penetration and less loyal customers. Consequently, small enterprise software companies have a harder time moving the needle than larger ones. The bigger you are, the better you do; it has a flywheel effect.

    What helps sell product is “mental availability.” If I think B2B PR, you want me to think “Miles.” For chocolate, you think Cadbury. For B2B software, most developers now think AWS. Fifteen years ago, that would have been Microsoft.

    Miles: I sympathise. I’ve worked with brands famous in particular markets that struggled to break into adjacent markets because they hadn’t built the brand there.

    Ged Carroll: That creates a ‘chickenand-egg’ situation: do you invest, or, try a “cargo cult” approach replicating past success? Past success was likely a confluence of luck, timing, and good practice. Many overnight successes are decades in the making.

    Huawei seemed to spring from nowhere but is four decades old. Breaking one customer, BT, made them famous. That fame cracked the market.

    Miles: Brand building is critical. You mentioned that in a typical SaaS subscription business, you should invest about 70% in brand building?

    Ged Carroll: Heuristically, for a subscription business, about 70% should go into brand building and 30% into brand activation.

    Brand building includes PR. I ask: how can we make this idea work for earned media as well? Does the campaign scale to generate “talkability”? People discussing it at the water cooler, in trade magazines, or on social media? Paid media works harder if you have talkability around it.

    Miles: Is that what is now called integrated campaigns?

    Ged Carroll: Integrated campaigns have been around for over 30 years. People used to discuss “media neutral” strategies. The core idea is that your paid media works significantly harder if the campaign generates conversation.

    Miles: That starts with great advertising principles. The book Look Out focuses on “right brain” thinking. Can we discuss the right versus left brain tussle in advertising and how to address it?

    Ged Carroll: Marketing has changed, but our thinking is hardwired by evolution. Analytical procrastination creates cognitive load. If our ancestors sat thinking, “Do I want this or this?”, a predator would have eaten them before they decided.

    Miles: By the time you selected the next iPhone, you’re dead.

    Ged Carroll: Exactly. Logical “System 2” thinking is a difficult construct, yet B2B marketers often communicate rational benefits this way. However, we evolved instantaneous “System 1” thinking, which emotions tap into. If I feel something sharp, I instantly move. That is why we don’t remember a commute unless something significant happens.

    Current advertising often treats us as rational decision-makers, but feelings have a longer-term impact. If I feel sharp stones, I build longer-term thinking to wear sandals next time. Traditionally, advertising tapped into this. Brands like Accenture or Google Cloud attach themselves to emotional events like sports, or consumer ads use storytelling to build memory structures and automatic association.

    Miles: Absolutely.

    Ged Carroll: Procurement processes try to force a rational view, but organisational load often short-circuits this. Do you care where you buy paper clips? No, you go to the fastest place. Brand building gets you onto that procurement shortlist. Furthermore, people aren’t in the mood to buy 95% of the time. Unless you build memory structures while they are inactive, you won’t be considered when they are in the market.

    Miles: Smaller companies can’t afford TV or billboards. What do you advise? I offer thought leadership and education. Tech businesses often say, “You aren’t buying now, but do you want to learn about prompts?” Is that brand building?

    Ged Carroll: It could be. But whose brand is it building? It might just build the LLM model’s brand. My mum asks me to “Ask Google” about crochet patterns. She blames the specific websites for bad patterns, not Google. She associates Google with getting what she wants.

    With thought leadership, are you building the person’s personal brand, or the company brand?

    Miles: That’s an interesting question. I often do personal brand building for the CEO or CTO to express the business vision. But below the C-suite, say a VP of Sales, is it their brand you’re building rather than the company’s? Especially given high turnover.

    Ged Carroll: Exactly. Founder-managers are different; they stay longer. Professional CEOs shipped in by VCs might only stay a few years. B2B marketers face dilemmas, not just choices. It’s about making the best choice within those dilemmas.

    Miles: There are parallels between advertising and B2B marketing, but also budget challenges. Media has changed; 15 years ago, clients bought display ads to build brand. Now, the digital tendency is toward content and performance marketing. Is business stuck in short-term goal-orientated thinking?

    Ged Carroll: It’s not strictly a B2B or B2C problem. We measure what can be coded. Ad-tech stacks are based on interactivity, not marketing science. We assume if someone does X, Y will happen—the sales funnel concept. The sales funnel is an interesting mental model, but it comes from century-old door-to-door sales and assumes rational decision-making and perfect memory through the process.

    Miles: You’re saying consistent brand building short-circuits the funnel, leading straight to the sale.

    Ged Carroll: Yes. When you want a beer, you choose Heineken because it’s in your mind. The consideration process shrinks. Brand building gets you into that consideration process much faster. Regularity is vital to reach people the 95% of the time they aren’t ready to buy.

    Miles: Look Out discusses the narrowing and fragmentation of attention. Are there ways through that?

    Ged Carroll: We have more media opportunities now, but fragmentation occurs because we have smaller gaps of consumption time to fill—like checking a smartphone on the tube. Unless you have repetition within those small gaps, you won’t build memory structures. It’s hard to make a six-second spot emotional.

    You need an integrated approach: emotion and storytelling in long-form content (like a documentary), supported by short content that directs people to it. In B2C, this is easier using brand cues: music, mascots, fonts, colors. Build those cues and stick with them. Marketers often get bored of a campaign and change it, but the audience hasn’t seen it enough. Stick with it.

    Miles: Stick with it.

    Ged Carroll: Many consumer adverts run for years. My dad’s favorite Twix advert is from 2022. Flash has used the same dog and music for five years. Great brand-building campaigns “burn in” rather than “burn out.” Performance marketing might focus on a new feature, but it relies on the brand association already built.

    Miles: It’s been a fascinating discussion crossing advertising, brand building, and B2B marketing. My big takeaway is to encourage more right-brain thinking. Thank you for your time, Ged.

    Ged Carroll: Thank you, Miles. I look forward to chatting again.

    You can watch the interview on video here.

    I gave Miles a reading list in advance of us chatting. Here it is: