Huawei surpassed the world's highest sales of Apple's phones this year and in 2007 it became the second-largest smartphone provider in the world by market share at the end of the second quarter. The new goal of the Chinese company is to move first by 2020, which is currently owned by Samsung.
"Next year we will be very close to number one, maybe we will be on the same level as Samsung, and at least next year, maybe we have the opportunity (to be number one)," said Richard Yu, CEO of Huawei Consumer Division, for CNBC in an exclusive interview.
Huawei talks about foldable phones, 5G technology and increased glasses of reality. But this was not always a world class company. In fact, Huawei did not even have his smartphone at all until 2010, three years after Apple first debuted with the first iPhone.
The company has become one of the largest technology companies in China due to the growth of mobile network equipment and is now one of the largest suppliers in the world for this market. It was also an original designer (ODM), which meant that it designed and manufactured devices for other companies.
The innovation was the key to the rise of Huawei
In 2010, Huawei unveiled its first IDEOS smartphone with Google Android and costs about $ 60. Eight years later, the company brings phones with original artificial intelligence and premium equipment to more than 1,000 euros.
The switch from ODM to today's giant was carried out by Richard Yu, who previously worked for the Huawei (B2B) division and became Executive Director of Consumer Group in 2012. time, some of the market trends Yu saw Huawei's potential in the phone market, including switching from smartphones to smartphones and the arrival of 4G mobile internet.
He decided that Huawei would stop producing classic phones and focus on top smartphones with more powerful batteries and larger screens, as required by consumers.
The CEO says he likes the risk, which helped Huawei develop rapidly.
"I encourage the team to have this ability to innovate, to make bold innovations, to do something that some people say is a little angry that it provokes itself and industry," said Yu CNBC.
For Yu, Artificial Intelligence (AI), a key technology will be to bring smartphones to the next level and help the company grow in the future.
"AI will come in. AI will be the engine for all future services and will be basic to work on multiple devices, connecting all applications." The biggest change in the next ten years will be the performance of AI phones, "said Yu.
Huawei is currently working on a retractable phone that will be debut next year and will be the first 5G phone company. Yu said that there are also real-life enhancements (AR) in the factory. These new technologies could provide growth for Huawei on.
In exchange, the CEO of Samsung, DJ Koh, told CNBC in a September interview that the company is changing its mid-range smartphone strategy to bring more innovative features at lower prices to its phones, a movement that could help alleviate Huawei's threat. This strategy was recorded in the A9 galaxy, the first smartphone with four lenses, which started in October.
And Samsung will not be easy to beat. He fell from his first position on the smartphone market three times in the last five years, usually only a quarter, according to data from Counterpoint Research.
Neil Shah, the Counterpoint research director, said Huawei would have to sell between 30 and 40 million smartphones a quarter to beat Samsung.
But Shah said that sales of Samsung could stabilize due to fierce competition, which Huawei could become number one.
Yu's ambitions are greater than smartphones. Huawei want to start developing new products, such as laptops and smart speakers. Yu wants to create an ecosystem of smart devices.
"In the next ten years, we want to take the lead in becoming an integrated intelligent solution," said Yu CNBC.