R&D promotes the rise of Chinese cell phone makers
- By Wu Jin
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E-mail China Daily, September 18, 2016
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A model shows the new smartphone P9 of Huawei in Hanoi, Vietnam, July 14, 2016. [Xinhua] |
Against the latest launches of iPhone 7 and iPhone 7 Plus by Apple Inc., domestic cell phone producers are less peripheral than before in competing with the global tech-giant, thanks to their emphasis on research and development (R&D).
According to China Academy of Information and Telecommunication Research (CAITR), shipments of domestic cell phones hit 44.712 million in August, registering a year-on-year increase of 6.2 percent. Domestic producers released 114 new smart phone series, an increase of 44.3 percent year-on-year.
The good sales momentum of domestic smart phones is absolutely due to technological innovation, the Guangming Daily reported.
Last year, Huawei, one of China's leading smart phone and telecommunication technology providers, gave full play to its R&D center by building up a talent pool of 79,000 people, accounting for 45 percent of its entire employment,accounting for expenditure of 15.1 percent of gross income.
Huawei CEO Ren Zhengfei said:"The R&D center has contributed a lot to the company's growth. It's required to keep on exploring new technologies and, more importantly, respond to the specific client demands, thus becoming highly sensitive to the needs of customers."
The scandal over the explosive Lithium-ion batteries of Galaxy Note 7 produced by Samsung contrasts with the bullet-proof P8-Lite made by Huawei, which saved the life of a South African citizen when attacked by two robbers, Xiang Ligang, a telecommunications analyst said.
"The incident reestablished the prestige of the 'made-in-China' slogan," Xiang said.
Hu Houkun, rotating CEO of Huawei, said, using cloud computing to search of solutions to capricious market demands reflects Huawei's customer-centered approach.
The stable growth of Chinese smart phones in the domestic market has empowered cell phone makers, such as, OPPO and vivo, in addition to Huawei,to expand into global markets.
Moreover, some experts say that, despite the enormous size of shipments, the domestically-made smart phones in China are still less profitable due to their low prices and are expected to focus more on high-end markets for fat rewards.
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