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
Upheaval in the UK business telecom market. Read this, then get our recent report https://t.co/Ber2fc3fyp
Follow CCS Insight
Shaun Collins
RT @kestermann: For a full in-depth analysis of the UK enterprise market, message me or contact @CCSInsight
Follow Shaun
Ben Wood
RT @EE: We're delivering exclusive VR content on site at #Glastonbury in a Glastonbury Festival first! https://t.co/WZY9jB8x33
Follow Ben
Martin Garner
Heading to #IFSEC2016 for a good download of smart building IoT.
Follow Martin
Geoff Blaber
*Sigh* https://t.co/uUOyTyUiIn
Follow Geoff
Nicholas McQuire
RT @StigAbell: New Yorker: "Britons mourned their long-cherished right to claim Americans were dumber than them" https://t.co/7WA4hfToaF
Follow Nicholas
Paolo Pescatore
Both Sky & ITV are jumping on the #eSports bandwagon. Will launch 24hr TV channel with Ginx https://t.co/cVRuINpOeq https://t.co/zV24wZjvlH
Follow Paolo
Marina Koytcheva
VR/AR the largest value contributor to the £1bn+ wearables market in the UK in 2020. @CCSInsight's latest forecast: https://t.co/eM3fPihEW4
Follow Marina
Kester Mann
For a full in-depth analysis of the UK enterprise market, message me or contact @CCSInsight
Follow Kester
Jasdeep Badyal
RT @benwood: CCS Insight's take on Xiaomi's deal with Microsoft https://t.co/DX4nSKDCI4 "Patents alone won't assure success" https://t.co/8…
Follow Jasdeep
George Jijiashvili
If you missed it, here's my take on VR announcements at the #E32016 [https://t.co/9WZId7TU6D] #VR #wearables https://t.co/4wXJcdbdry
Follow George
Rebecca Morley
RT @BBCBusiness: VIDEO: Could Brexit mean higher roaming costs? https://t.co/IIMiivNHqq
Follow Rebecca
Katie Taylor
Multiple Sclerosis could be reversed with calorie-restricted diet, study suggests https://t.co/Ak4mJh3mSI
Follow Katie

Recent Blog Posts

Blog Post
UK Business Telecom Market Undergoes Rapid Transformation EE Helps Shake Up Sector Once Dominated by Vodafone and O2 ... Read more
Blog Post
Verizon's Vehicular Endeavours US Carrier Acquires Fleet Management Platform Telogis This ... Read more
Blog Post
Major Mayors Meet Municipalities Playing Catch-Up with the Modern Economy Thi... Read more
More blog

Latest Company News

Blog Post
UK Wearables Sales to Reach Five Million Units in 2016 1.7 million fitness trackers to be sold this year ... Read more
More news