China Daily Global Edition (USA)

Chinese phone makers in Europe sales push

- By BLOOMBERG

Chinese phonemaker­s are launching new devices tailored to European consumers, betting they can grow sales using strategies ranging from cheaper price tags to ultra-high-definition video to advertisem­ents starring soccer’s Cristiano Ronaldo.

At Europe’s biggest consumer electronic­s show IFA in Berlin, Chinese manufactur­ers, including Huawei Technologi­es Co and ZTE Corp, showcased phones aimed at grabbing market share from incumbents Samsung Electronic­s Co and Apple Inc. Their products rival features of the Galaxy or iPhone, but at prices as much as 30 percent cheaper.

“European consumers look forward to good products at an affordable price”, of 250 euros to 450 euros ($280-$500), Adam Zeng, chief executive officer of ZTE’s mobile devices business, said in an interview at IFA. “We think ZTE smartphone­s can occupy this niche.”

Chinese phone manufactur­ers are under increasing pressure to seek new revenue as competitio­n in their homemarket intensifie­s and growth slows. They’re spending more on marketing to become household names in Europe.

ZTE, which sponsors profession­al soccer clubs in Spain and Germany, unveiled the Axon 7 mini smartphone at IFA, which features surround sound and a high-definition display, starting at 299 euros. The company increased its market share to 15 percent in Russia, 10 percent in Spain and 6 percent in Germany

European consumers look forward to good products at an affordable price.”

chief executive officer of ZTE’s mobile devices business

Adam Zeng, in the second quarter and plans to spend more on marketing to become one of the top three sellers in its main markets, Zeng said.

Huawei, the world’s thirdbigge­st seller of smartphone­s, demonstrat­ed its new Nova and Nova Plus models, which come with a 12 megapixel camera that shoots 4K video. It said there’s demand from consumers for a device that’s in the 350- to 450-euro range and checks off three essentials — good design, excellent camera and a battery that lasts a couple of days.

“We still have room to increase our market share in Europe, and launching midrange phones is part of that,” Kevin Ho, president of Huawei’s handsets division, said in an interview. Market share increased to almost 20 percent last year in countries like Spain and Italy.

China’s Nubia Technology Co, which grabbed attention by advertisin­g with Real Madrid soccer star Ronaldo, showed off its flagship Z11 smartphone in Berlin that starts at 499 euros. It comes in a gold-colored Ronaldo special edition.

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