Huawei Expands Reach in Africa

Participation in Microsoft's 4Afrika Initiative Gives Chinese Player Greater Coverage


Earlier this month Microsoft launched the 4Afrika Initiative. The software company aims to invest $74 million over the next three years to support economic development in Africa. As part of the project Huawei has released a budget Windows Phone 8 device called the Huawei 4Afrika, which will be tailored for and exclusively available in some African countries.

4afrika

I was a little surprised that Microsoft had decided to work with Huawei on such a product. Given Microsoft's closer relationship with Nokia, coupled with Nokia's previous experience in similar development programmes including Nokia Money and Life Tools, I would have expected a Nokia phone to be the project's first offering. What's more, recent growth in Windows Phone 8 sales has mostly come from Nokia's Lumia products, particularly in emerging markets like India.

I believe Microsoft selected Huawei because it could provide the most affordable Windows Phone 8 handset. This is hugely important for consumers in Africa, where prices are not always subsidised by network operators and the average income is relatively low. The recent popularity of low-cost Chinese smartphones in East Asia and India shows how consumers are becoming increasingly persuaded by price and not brand.

Microsoft has said the Huawei 4Afrika is a variant of the Huawei W1. Our estimates from this month's Wholesale Pricing report put the Huawei W1 at about €30 less than Nokia's Lumia 620. The Huawei 4Afrika is reported to cost about $150 when it finally reaches retail stores.

Clearly Microsoft is making a big investment in Africa because there's so much potential growth in technology adoption, including smartphones. But I believe this is a bigger win for Huawei. The company will be able to use the 4Afrika Initiative to expand its distribution points across Africa. Huawei sees Africa as one of its fastest-growing markets outside China; this gives the collaboration with Microsoft added significance. I wouldn't be surprised to see Huawei make further similar announcements in the next month or so.

This entry was posted on February 12th, 2013 and is filed under Devices. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Posted By Digantam Gurung On February 12th, 2013


Comments
(There are no comments yet)
Leave a Comment

Hot News

Team Tweets

CCS Insight
Smart footwear has yet to gain broad appeal, but we expect this #wearables segment to continue to show steady growth https://t.co/qAprwZR9A3
Follow CCS Insight
Shaun Collins
RT @SteveRattner: Amazing: 1990: top 3 automakers: Revenues: $250B Employees: 1.2M 2014: top 3 Silicon Valley co’s: Revenues: $250B E…
Follow Shaun
Ben Wood
RT @nickmcquire: SoftBank invests $100m in @cybereason. Big
Follow Ben
Martin Garner
@Intel going in big with Olympic sponsorship, as a showcase for lots of core future technologies.… https://t.co/XWX8Ygo5Cv
Follow Martin
Geoff Blaber
RT @SteveRattner: Amazing: 1990: top 3 automakers: Revenues: $250B Employees: 1.2M 2014: top 3 Silicon Valley co’s: Revenues: $250B E…
Follow Geoff
Marina Koytcheva
@Herring1967 You are not alone :)
Follow Marina
Nicholas McQuire
SoftBank invests $100m in @cybereason. Big
Follow Nicholas
Paolo Pescatore
Another telco partner for #Netflix. Interesting approach taken by @WindTreOfficial, bundled package incl Google Chr… https://t.co/NapQQLXC4o
Follow Paolo
Kester Mann
Veon is breaking new ground with a radical new strategy. What are its chances to succeed? Full analysis in CCS Insi… https://t.co/Tith3Ul9VZ
Follow Kester
George Jijiashvili
Connected footwear is seeing a comeback after several failed attempts to introduce them to mainstream [… https://t.co/0JpjX7Cc2h
Follow George
Katie Taylor
RT @GdnPolitics: Whether you are calling it #BattleForNumber10 or #mayvcorbyn, don't forget to play along at home https://t.co/Aj4SG7lkaS h…
Follow Katie
Tony Worthington
@MassiveAttackUK I did my university dissertation on this when we had, ahem, floppy disks. Happy to send a copy. Good read.
Follow Tony

Recent Blog Posts

Blog Post
The Resurgence of Smart Footwear New Generation of Connected Shoes Will Boost Demand In the ... Read more
Blog Post
Did Sprint Borrow a Page from Jio's Playbook? Offer of Free LTE Looks Familiar Through a low-key marketin... Read more
Blog Post
Is AR Coming of Age or Still Just a Promise? Industry Cooperation Will Be Crucial to Success AR has been... Read more
More blog

Latest Company News

Blog Post
Sales of 5G Smartphones to Hit 100 Million in 2021 Over 10 billion mobile phones to be shipped in the next five... Read more
More news