Huawei TV has been launched for nearly two months. It has always stressed that it should not be a low-cost destroyer, but an innovator in the TV industry, and promote the TV industry to find new opportunities with innovation. Under the current fierce price war in the TV market, this statement is quite fresh. However, if we carefully analyze its widespread use of price war in many industries, we can see that it will start a price war in the TV industry sooner or later.
Huawei has always been good at using price war
In the communication equipment market, Huawei, as a latecomer, can break through the strong enterprises such as Ericsson, Alcatel and Lucent by relying on the price war. Moreover, it is also better than other communication equipment enterprises in terms of service. Among the 5g devices discussed enthusiastically recently, The foreign industry commented that abandoning Huawei 5g equipment will lead to a sharp rise in the cost of 5g network equipment of foreign operators, which also proves the price advantage of Huawei 5g equipment.
In the smart phone industry, although Huawei’s mobile phones are also high-profile publicity and innovation, in the actual competition, Huawei’s glory brand implements the price war strategy to seize the market at a low price. The glory brand accounts for 50% of the shipments of Huawei’s mobile phones in the domestic market. In fact, even the Huawei brand itself has a Changxiang brand with a price of more than 500 yuan.
The server business is also one of Huawei’s businesses. Because it is mainly oriented to the enterprise market, consumers may not know much about it. However, the 2018 data given by the market research organization shows that Huawei ranks among the top five in terms of shipments in the world, but it does not enter the top five in terms of sales, which shows that Huawei mainly relies on medium and low-end servers to seize the market and relies on price advantage.
Huawei launched its PC product matebook in 2016. At that time, it also hoped to focus on the high-end market. The price was around 5000 yuan and did not compete with traditional PC enterprises in the price war. However, for more than two years, matebook did not gain a sense of existence in the PC market. Up to now, it has begun to launch PC products with a glorious brand, and the price has been as low as 3699 yuan, competing with traditional PC enterprises for the medium and low-end notebook market in the price range of 3000 yuan.
From the above businesses, we can see that Huawei can make progress in many industries, and price war is one of the means it has always used. However, the reputation of price war is not good, and it is easy to lead to low-end brand. Therefore, although it uses price war in actual market competition, it always likes to talk about tall terms such as innovation in publicity.
Will Huawei TV fight a price war
The TV launched by Huawei is based on the glory brand that has always been competitive in terms of cost performance. However, it is strange that the price of glory TV is much higher than that of traditional TV enterprises. Taking the 65 inch glory TV as an example, its price is as high as 6999 yuan, while the price of Xiaomi TV of the same size is as low as 3399 yuan. The price of products of the same size of other traditional TV enterprises is also more than 3000 yuan, The price of Huawei TV is significantly higher than that of other TV enterprises.
Huawei TV hopes to build brand reputation with high price. As a latecomer, building brand reputation is the first priority. In the past, new entrants in the TV industry such as LETV and Xiaomi opened the market with price advantage. Huawei TV did the opposite and entered the market with extremely high price, which can also play a role in building brand reputation. From the feedback of the current market, Huawei has achieved this goal.
Another reason why Huawei is unwilling to quickly seize the market with a price war should be that considering its TV chip business, Huawei Hisilicon currently accounts for about 50% of the domestic TV chip market. Huawei hopes to avoid stimulating traditional TV enterprises to abandon Huawei’s TV chips in the initial stage of entering the TV market, so it adopts a high price strategy. Huawei TV is not called TV but Zhihui screen. It also has this consideration in order to avoid stimulating traditional TV enterprises.
As for the future, Huawei TV will still adopt the means of price war. Just as it is in the PC market, after the TV industry has gradually established its brand reputation, Huawei TV is bound to seize the market with price war. At that time, the income brought by TV will be enough to make up for the loss of traditional TV enterprises giving up Huawei Hisilicon chips, so it doesn’t need to care about the attitude of traditional TV enterprises.
In fact, Huawei has great ambitions for the TV industry. It proposes that the shipment of TV should reach 10 million units, which has exceeded Xiaomi, which currently ranks first in the domestic TV market. The shipment of Xiaomi TV last year was 8 million units. To achieve this goal, it also needs to grab food from traditional TV enterprises, and the price war is an indispensable means to achieve this goal.
To sum up, Huawei TV’s current high-profile publicity emphasizing innovation is only to hide people’s eyes and ears. When the time is ripe, Huawei TV is bound to sacrifice the sharp weapon of price war, just as it quickly seizes the market with price advantage in communication equipment, server and other industries.