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
"The cheque is in the mail" gets a 21st century update http://t.co/JwA6nh10gH
Follow CCS Insight
Shaun Collins
RT @philiped: Apple has started approving third-party apps for its smartwatch. Twitter made the cut. Facebook did not. http://t.co/xOtQPiU8…
Follow Shaun
Ben Wood
Can't believe I missed Samsung "Project Beyond" 360° camera last year. Any progress updates? http://t.co/MlLNSBlgjr http://t.co/XaioYUiINK
Follow Ben
Martin Garner
#f8 FB claims 10% of the world's VoIP traffic is handled through its Messenger app
Follow Martin
Geoff Blaber
20% software rev growth the all important metric in @BlackBerry earnings. Not where it needs to be but it's moving in the right direction
Follow Geoff
Arnaud Gagneux
@British_Airways What is the rule at BA, 2 pilots/staff in cockpit at all time or does it vary?
Follow Arnaud
Paolo Pescatore
Worth our read: Amazon makes cord cutting cheaper than ever http://t.co/bBoWTMIVI5 via @CCSInsight
Follow Paolo
Marina Koytcheva
#HappySoundsLike Andrea Bocelli - Vivere https://t.co/t45GuLOy95
Follow Marina
Kester Mann
3UK's VoWiFi app has now been downloaded 1 million times. A hot technology being pursued by a number of operators:http://t.co/0gAwxu5IBb
Follow Kester
Jasdeep Badyal
RT @benwood: HTC M9 unquestionably stunning phone but so similar to M8 customers wil struggle to differentiate. Loving camera tho! http://t…
Follow Jasdeep
George Jijiashvili
RT @paolopescatore: UK Multiplay Forecast by @CCSInsight. Triple play will be the most common bundle in next 5 yrs http://t.co/urVGG8ucZI h…
Follow George
Rebecca Morley
RT @CCSInsight: RT @BBCRoryCJ Hutchison - owner of 3 - agrees £10bn deal to buy O2... [people scoffed when we predicted this in 2013]
Follow Rebecca

Recent Blog Posts

Blog Post
Payment Plans Messaging-Money Mash-Ups Are Hot Last week, Facebook intr... Read more
Blog Post
Seven-Pound Scissors Amazon Makes Cord Cutting Cheaper than Ever On 24 March, ... Read more
Blog Post
Suite Deals Microsoft Builds up Its Office Walls On Monday, Microsoft... Read more
More blog

Latest Company News

Blog Post
UK Poised for Huge Growth in Take-Up of Bundled Telecom Services About 8 in 10 UK households will sign up to a multiplay serv... Read more
More news