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Huawei Device H1 2011 China Sales Up 50% YoY

Sina Tech, 6/22/11

Yang Xiaozhong, Huawei Device's president for the China region, said in an interview with Sina Tech today that the Chinese handset and terminal manufacturer expected sales of RMB 7.5 mln in China for H1 2011, up 50% compared to H1 2010, including more than 70% growth in handset sales. Yang predicted 2011 sales of RMB 14 bln within China for Huawei Device.

According to Yang, Huawei Device benefited from significant growth in 3G handset sales during the first half of this year. According to a report dated March 2011 from Beijing-based market research firm Sino Market Research, Huawei accounted for 25.2% of China Telecom's (NYSE: CHA; 0728.HK) CDMA2000 EV-DO handset market during the first half of the year, and 18.3% of the market for China Mobile's (NYSE: CHL; 0941.HK) TD-SCDMA - in both cases, leading the market. The company has shipped 2.75 mln units of the China Telecom-customized C8500 3G smartphone to date, and sold more than 2.2 mln units. Since forming a strategic partnership with China Unicom (NYSE: CHU; 0762.HK; 600050.SH), Huawei Device has also made an operator-customized U8500 WCDMA smartphone, of which it has shipped 500,000 units. The company's T8300 smartphone was chosen in China Mobile's recent TD-SCDMA handset tender; the company will ship an initial order of 200,000 units, and expects sales ultimately to top 800,000 units.

During the first half of this year, Yang said, Huawei Device accounted for 6.91% of all China handset sales, remaining comfortably among the top three companies and gradually shrinking the distance between itself and competitor Samsung. The company also remained the biggest supplier of data cards for the Chinese market, with orders for 4 mln mobile data cards during the first half of the year.

Huawei Device is paying a great deal of attention to smartphones, Yang said. The company shipped 5 mln smartphones for the China market during the first half of the year - thus keeping its place as the largest supplier - and will ship more in H2, with predicted orders of 7 mln units. Huawei Device will also step up efforts on its S7 tablet and its E5 3G data card, and expects sales of more than 1 mln units of each.

Yang added that Huawei Device would continue its efforts in the 2G market: the company hopes to ship 5 mln GSM phones, as producing GSM phones helps Huawei build out its channels and its brand recognition.

Discussing retail channels, Yang said that Huawei Device would build at least ten branded retail stores, and will add dedicated counters in 6,000 privately run retail outlets; the company plans to employ between 3,000 and 5,000 salespeople.

Keywords: sales volume market share Huawei C8500 Huawei U8500 Huawei T8300 HR China Telecom China Mobile China Unicom handset smartphone retail wireless Huawei data card 3G GSM CHL TD-SCDMA WCDMA 0728.HK 0762.HK 0941.HK 600050.SH CHA CHU CDMA2000 EV-DO tablet Huawei Device Yang Xiaozhong operator-customized H1 2011 computer branding

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