Chinese handset maker Huawei, known for making low end Android devices such as the Ideos, and for getting into trouble with the American government over false allegations concerning the Chinese military, has told Reuters in an interview that they plan to ship over 60 million mobile phones in 2011; that’s double what they sold in 2010. More impressive is that they claim 20% to 25% of those handsets will be smartphones, which is just another way of saying that they’ll run Google’s Android operating system. That would mean Huawei plans to ship between 12 and 15 million Android powered devices this year, way more than the 3 million they pumped out in 2010.
The fourth quarter of last year was the first time any operating system outsold Nokia’s Symbian platform. Nokia is planning to release their Q1 2011 financial results tomorrow, and once everyone’s figures are out it’s going to be fascinating to see just how much change has occurred in the mobile industry during the course of the first 3 months of this year. Android has enabled companies like Huawei, ZTE, and players that weren’t really known before, to enter the market with products that may not be technologically competitive, but come at price points that traditional handset makers can’t quite reach. How are you supposed to compete with a company like Micromax who makes and sells Android smartphones in India that feature 3G, GPS, WiFi, a touch screen, and can be had for less than $150? You simply can’t, and it’s why Nokia and Samsung, two players who have dominated the emerging markets, are feeling pain right now.
Is Huawei capable of shipping something that blows our minds? Sure. Their low overhead allows them to pick best of breed components and throw a stock version of Android on top, but creating such a product is a risky bet. The Chinese are still sticking to the low margin, high volume game for the time being.