HUAWEI TECHNOLOGIES CO., LTD. www.huawei.com TEN YEARS OF CONNECTING EUROPE Huawei Industry Analyst Summit – Europe 2011 Evolution • Innovation • Localization — Huawei Device Strategy in Europe Richard Ren President of Device Huawei Western Europe
HUAWEI TECHNOLOGIES CO., LTD.
www.huawei.com
TEN YEARS OF CONNECTING EUROPE
Huawei Industry Analyst Summit – Europe 2011
Evolution • Innovation • Localization— Huawei Device Strategy in Europe
Richard RenPresident of DeviceHuawei Western Europe
HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 2
Content
Growth of our Business
Growth of our Future – Exploring a 100bn USD market
1
2
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n $4.5 billion sales revenue,
120 million units shipped,
15 million units in West Europe (2010)
n $6 billion sales revenue,
$800 million in west Europe
(2011 forecast)
Sales Revenue (USD in billions)
2006 2007 2008 2009
1.1
2.2
3.53.6
2010 2011E
4.5
6.0
Strong global growth of Huawei Devices
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The 3 mainstays of Huawei Devices
100+ million units
Over 100% growth in SPs
Handset
Most innovative Mobile WiFi
No.1 multi-mode LTE units
Mobile broadband
100+ million units
230% Growth in STBs
Home Devices
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In Western Europe 1 of every 5 people is using a Huawei MBB device
2007 2008
Better User Experience
2009 2010
Expands from PC to CE
Leading MBB technologies, first Multi-mode LTE
2010 2011
Driving innovation and leading market --- MBB
First 3G “Killer Weapon”
Plug & PlayIgnite the consumer
3G services
2006
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Help to create Home Convergence --- Home Devices
Convergence : Access + Media Access
Media: Latest Hybrid OTT STB solution in UK
z
Internet OTT IPTVDVB-T2
IP
2010 ~ 2011
(Convergence for Contend & Entertainment also)
UK Youview STB Technical Partner First launching with Talk Talk Group
Access: Advanced Home gateways in Tier 1 European Operators
2008 ~ 2010
(convergence for Surfing & Communication)
z
Vodafone station / VOX
ADSL2+ & UMTS dual uplink
+ 1 million shipped
Home Hub 3
ADSL2+ & GE dual uplink
+ 100K units
W723v
VDSL2 & UMTS dual uplink
+ 600K units shipped
Super Hub
Docsis3.0 & WiFi dual band
Already on the Market
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From ODM to a visible Huawei Brand --- Handsets
2006 ~ 2008
Start ODM handset with VDF
2008 ~ 2009
Android Phone
Feature / Qwerty / Touch Phone
Touch / Feature Phone
Feature Phone
Touch / Feature Phone
Touch Phone
Multiple partners in Europe use ODM Handset
2010 ~ 2011
ODM à ODM + Huawei own brand Operator resell à Open Market
On our way to become one of the top handset vendors
ODM + Huawei Own brandODM
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Key to enable broadband growth rapidly --- “Smart 4 all”
“Smart 4 all ”
Consumer:
to enable Social Network life style, better experience
Operators:
to promote data services and apps, increase ARPU
FBB/MBB
Innovative smart Device
2000X trafficSingle Network
Smart & Affordable Devices
How to satisfy consumer ’s demands?
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ODM and own brand makes the phone “Smart 4 all”
Own Brand Hero Product --- Huawei X3
1st Sept. 2011Rocketsize beginning of the X3 sales
Fist 35K sold out within the first 2 hrs
ODM “Smart 4 all” --- VDF V858
1st Smartphone <100 Euro street price
Over 1M units PO in 2011, into total 26 Opcos of VDFGood sales performance in Italy, Germany, UK, Spain
Huawei U8150 (Vodafone V858)
ODM
OwnBrand
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Content
Growth of our Business
Growth of our Future – Exploring a 100bn USD market
1
2
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Toward a “win-win” Virtuous circle
Business to People
To provide both a convincing rational reason to believe as well as a compelling reason to purchase
Our vision:Expand our knowledge to all the people
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How we turn the vision into reality
l >10% market share in Western Europe, Top 3 Smart phone vendor
l Excellent Present Cloud based Services
l Be an attractive brand
Handset
l Leading in convergence
l No.1 in access CPE, top 3 in STB market
l Be the engine of innovation in Home Solutions
Home Device
l Leading position
l Expand to CE/M2M area, going beyond the population
MBBDevice
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Evolution
ODM à ODM + Huawei Brand
Resale à Resale + Open Market
InnovationFull range Portfolio,
UI Differentiation, Cloud+ Applications
Localization
Local Portfolio teams, Local JICs
Road to create the B2P promise
Local ID/MD, Local R&D,
Local content cooperation
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Open Market100 Billion
ODM20 Billion
OEM
40 Billion
Operator’s Brand Co-brand
Operator Channels
+Brand
Channel
Huawei Brand
Distributor Channels
+
+
Exploring a 100 bn dollar market
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YSNs – Young Social Networkers
Open to trying new brands Love to buy new technologyCouldn‘t live without the internet on
their mobile phone
Huawei Brand Statement:
“Let’s simply share”: is a rallying cry for a generation of YSNs
“Simply”: is in the DNA of the Huawei Brand - simpler to use, simpler to share, simpler to connect with, easier to afford.
“Share”: being open-minded …about capturing the spirit of the mobile Internet. Sharing images, videos, points of view and ideas
Brand promise to key customers
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Top 3 leading handset vendors
2011
l Brand ntelligence and Strategic brand activities
l Strategic products & brand in key regions
Focus
2012
l Reinforce brand awareness and engage target consumer
l Extend the brand influence on Tier 2 regions
Expand
2013
l Enhance the brand influence globally
l Leverage the strength of the Huawei brand to gain traction in local markets
Leverage
2011 Supercoppasponsorship
UK Brand campaign
Local Brand marketing activities all over the world
Evolution of the brand
BrandLoyalty
BrandPreference
BrandAwareness
2015
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2011
l Build up “sell-out” capability in operator channels
l Pilot tests of open channels
Pilot Testing
2012 to 2013
l More than 30% of total sales revenue from open channels
l Build relationship with big retailers
Deployment
2014 to 2015
l More than 45% of total sales revenue from open channels
l Imagine build in open market to help operator sales
Roll out
l Build relationships and start to communicate with operator’s dealers
l Focus on big retailers, build relationships
l Invest in Field Marketing
l Easy to buy for consumers
Expand open market channel
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Permanent innovation of product portfolio
Huawei Device
Home
l Convergence à “All in One”
l Easier to enjoy, Easier to control
MBB Device
l Lead in technology such as LTE
l Combine with VAS, Expand to M2M
Handset
l Smart 4 all: provide full portfolio
l Focus on user experience
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“Smart 4 all” --- Smartphones for every demand
Innovative world-class flagship
• Dual-core 1.2G• Super Long battery-life• Extremely rapid Power-on
Skyfire ---“Fashion Entertainment”
Asura ---“Lighting up Passion”
• 4.3 Super AMOLED• 7.9mm Ultra Slim• Cloud+ services
2012 H1 Hero Products
Flagship
Ultra Slim somatic wireless HD
Security cloud computing
waterproof
Stereo Speaker HD Voice
DLNA
Glass-free 3D
EliteNavigation
Flash 10.1 Social & Share LBS
3D Lens
MassLong Standby Ease of use Colorful
Loud Speaker Value for Money
Basic MultimediaRobust
LMM-FP
Basic Phone
Flagshi
Elite
Mass
Smart Phone
Feature Phone
MM-FP
Proposition ModelMarket Structure
Honor Viva
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young fashion Business Elite
• Cloud + ---- access your content anywhere, anytime
• Social Widget in home screen
• with different trendy themes
• Customizable for target market
• Intuitive
• Quick Access
• Personalized
Providing a new UI experience
Easy to use Easy to personalize Easy to share
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HUAWEI DSM
Cloud
PipeService-aware
High Performance
Data Monetize
Device Management
Offload
App Integration
PIM
Content/App Pushing
3-Screens
User-aware
Device
Overview of Huawei Cloud + Services
Personal Cloud
Enterprise Cloud
Platform Capabilities
Device-Pipe-Cloud Synergy
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Layout own Core competent, build up win-win ecosystem
Local people manage local relationships
Local Content andApplication partners …
Local JICswith Partners M2M
JIC MunichSmart PhoneJIC with Bouygues
Connected HomeJIC with DT
Local ID / MDUKID Center
Local R&DSwedenTechnology Center
Local PortfolioDedicated portfolio team in each country
Local expert staff from each country
Create localization portfolio for each country
Cus
tom
er r
elat
ions
hip
Co
nsum
er o
rient
ed
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Evolution
Innovation
Localization
B2P
“Smart 4 all”
TOP3
Thank youwww.huawei.com
TEN YEARS OF CONNECTING EUROPE
Copyright©2011 Huawei Technologies Co., Ltd. All Rights Reserved.The information in this document may contain predictive statements including, without limitation, statements regarding the future financialand operating results, future product portfolio, new technology, etc. There are a number of factors that could cause actual results anddevelopments to differ materially from those expressed or implied in the predictive statements. Therefore, such information is provided forreference purpose only and constitutes neither an offer nor an acceptance. Huawei may change the information at any time without notice.