Huawei is expanding its portfolio to device accessories and smart homes to grow revenue opportunities because the smartphone market is mature, and to compete with its Chinese rival Xiaomi.
In addition to smartphones, smartwatches and digital scales, Huawei plans to add headsets, speakers and virtual reality glasses, said Tossaporn Nitsthanon, deputy country director of Huawei Consumer Business Group Thailand.
Accessories priced affordably for the mass market include sports-related items and health-conscious goods.
Huawei plans to focus more on the online channel to serve the growing e-commerce trend, tapping young customers.
Earlier this year, the company opened its own brand shops under three e-marketplace leaders -- Lazada, Shopee and 11Street.
In the local smartphone market, Huawei will widen focus with a premium mass strategy by adding new features that were previously exclusive to high-end smartphones to mid-priced smartphones.
"This strategy will encourage consumers to replace their smartphone with a new one, in particular upgrading from phones costing 3,000-5,000 baht," said Mr Tossaporn. The local smartphone market has matured, with a penetration rate of over 100%, he said.
Normally, local smartphone users on the Android platform upgrade to a new phone every 13 months, said Mr Tossaporn.
This year, some 14.4 million local smartphones will be sold (1.2 million units per month), growth in the single digits.
Growth in terms of value will be higher, but still in the single digits, with an average sales price of 7,000 baht.
"Smartphones priced below 7,000 baht are the sweet spot -- a high-growth market," he said.
Smartphones priced below 3,000 baht in 2017 contracted 29%.
Those priced in the 3,000-5,000 baht band grew 24%, while handsets prices 5,000-7,000 baht grew by 35%.
In terms of market share, the 3,000-5,000 baht smartphones comprise 52%, followed by handsets below 3,000 baht at 33% and 5,000-7,000 baht smartphones at 14%.
To capitalise on growth in the under-7,000 baht segment, Huawei introduced its Y9 2018, a quad-camera smartphone featuring dual front and rear cameras and a 4,000mAh battery, priced from 6,990 baht. The Y9 is targeted at students and first-time workers.
"We aim to make a game-changing move in mass market smartphones," said Mr Tossaporn. "Other smartphones that sell for 7,900 baht have lower specifications."
This year smartphones priced at 15,000 baht are expected to take 30% of the overall market, with the 5,000-15,000 baht band making up 40%. Devices priced below 5,000 baht are expected to comprise the remaining 30%, he said.
Huawei will continue its goal to become No.1 in Thailand's smartphone market by 2020. As of May 2017, Huawei had a 10.7% market share.
