Will an IPO make Huawei more successful in the US?
The Huawei Ascend P1 S was remarkable, and also one of the thinnest devices in the world. The company’s device portfolio also includes the Huawei Ascend D Quad, which happens to be one of the first devices to be announced with a quad-core processor. Our review of the Ascend P1 also proves Huawei has great potential to become a big player in the Android market. All these devices have specs that would compete with the best smartphones of their time, but none of these have come to the US.
In an attempt to change this, the company is said to be in talks with investment banks. Huawei is looking into the possibility of an IPO (Initial Public Offering). By selling stock to the public, the company’s course, investments, sources of income and projects would be more transparent. This would alleviate any Western fears of Huawei keeping a close connection with the Chinese Military, allowing them to gain more contracts in the US and other large markets.
Whether this happens or not, we are not sure how much of a successful future Huawei has in the US. While its smartphones are powerful, capable and aesthetically pleasing, the other companies have a very strong foothold on the US market. I simply can’t imagine a customer seeing a Huawei Ascend D Quad next to a competing Samsung product and picking the latter option.
Consumer mentality in the US can be very much based on brands, more so than quality. Huawei would certainly need a good boost from the carriers to bring it up to par with the “big guys”. Otherwise, the company will end up next to the likes of Pantech or Kyocera, which have made an attempt to release competitive devices without much success.
But if Huawei could gain more contracts in the US and release a series of great smartphones, while keeping those updates coming, I say it probably has a great shot at getting rid of its bad fame. An Android fan can dream, right?
[Source: The Wall Street Journal]