Huawei Windows Phones Put On Hold Since It Is Not Profitable For Now

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Huawei has now become the 3rd largest smartphone maker in the world this year. They are the fastest growing smartphone OEM in the world. In a recent interview with The Wall Street Journal, Richard Yu, the head of Huawei’s consumer business group commented about the future of Huawei Windows Phone devices. He revealed that they have decided to put any releases of new Windows phones on hold since they are not profitable for them. Even though they would like to have an alternative for Android, they are no other choice of platform that can compete with Android. He also pointed out that it is difficult for Windows Phone to be successful.

Huawei had only couple of low-end devices based on Windows Phone and I think this half-hearted efforts won’t make any OEM successful with any OS, not just Windows Phone.  What do you think?

Read the excerpt from his interview below,

WSJ: For most handset makers Android is the only option. Is that a problem?

Mr. Yu: It’s difficult to say. We have tried using the Windows Phone OS. But it has been difficult to persuade consumers to buy a Windows phone. It wasn’t profitable for us. We were losing money for two years on those phones. So for now we’ve decided to put any releases of new Windows phones on hold. We have worries about Android being the only option, but we have no choice. And we have a good collaboration with Google.

WSJ: Have you ever considered using the Tizen operating system [developed by Samsung and backed by Intel Corp. and others]?

Mr. Yu: We have no plans to use Tizen. Some telecom carriers are pushing us to design Tizen phones but I say “no” to them. In the past we had a team to do research on Tizen but I canceled it. We feel Tizen has no chance to be successful. Even for Windows Phone it’s difficult to be successful.

We have no plans to build our own OS. It’s easy to design a new OS, but the problem is building the ecosystem around it.

Source: WSJ

Comments
  • Wieland

    I like his opinion about Tizen. (: Huawei didnt make any serious efforts with Windows Phone and the handsets were beyond mediocre – its no surprise for me that the W-series didnt succeed.

  • arun

    “We were losing money for two years on those phones.” -> Huawei Ascend W1 released in q1 2013 in limited markets. W2 released in q3 2013. How then were they losing money for two years?

    Leave this OEM aside and concentrate on Lenovo or Xiaomi.

    • cybersaurusrex

      Yes, this is news. If OEMs start abandoning Windows Phone before they even start making them, then Windows Phone is doomed. I hate to say it, but it’s not looking good for Windows Phone…

      • arun

        I feel Google is doing something to sway OEMs from WP or maybe all OSes in general. It is understandable for a company to make phones and then judge based on sales, but some OEMs simply don’t try. Phones from Xolo and Micromax for e.g have not been released till date despite being announced long back.

        • Asgard

          If releasing these phones is not profitable, how the heck developing them first and not releasing at all is any better? We know Huawei at least WAS developing new WP phones.
          But yeah I think Google has their hands in the game somehow. It can’t be a coincidence that Samsung also dumped their Tizen phone just weeks before release. Maybe these guys are only blackmailing Google for better deals and have no real intention for moving away from Android. The problem is that when these other OSes are gone, there is nowhere to go.

      • bibleverse1

        No one buys subpar devices unless they run android.

      • Cormango

        Huawei didn’t support the Windows Phones devices they released. I don’t see this as a major loss. They made the platform look bad.

    • http://lukeja.co.uk/ Luke

      And they could choose to repurpose an android phone they already have and stick Windows Phone on it just like HTC did, that means zero hardware development costs so why wouldn’t they do that?

      • Cormango

        There are still soft costs to maintain the devices. But I guess they never maintained them anyway.

      • cybersaurusrex

        Maybe instead of buying Nokia, Microsoft should’ve bought T-Mobile… so a carrier would finally give Windows Phone the push it deserves.

        • http://lukeja.co.uk/ Luke

          That would be a great idea

    • cybersaurusrex

      In all honesty, I don’t think the problem is the hardware or the OS–it’s the BRAND. “Windows” is dead as a consumer brand. Microsoft should’ve launched the OS as a new brand. Something fresh and hip… that could compete with Android and iOS. And/or they should’ve leveraged the Xbox brand more–created exclusive, must-have games that could’ve lured people away from the app-advantage of iOS and Android. Maybe called it the Xphone or Xglass or something besides “Windows.” A lot of us said this before it even launched… and Microsoft ignored us. Now they have to GIVE Windows away. That’s how bad it’s gotten.

  • Mark Gibbs

    the only phone that they do have are not on any carriers in the US but I have been watching it and its been running around 20th in the Unlocked category in amazon for about a month now.. that is not bad for a phone that has never been really released in the us and no one knows about it..

    http://www.amazon.com/Best-Sellers-Cell-Phones-Accessories-Unlocked/zgbs/wireless/2407749011/ref=zg_bs_nav_cps_2_2407747011#2

    I have no Idea what this person is smoking.

    • Tips_y

      Obviously a pipe provided by Google.

  • donzebe

    Not too good news for windows phone, but Huawei never took windows phone seriously in the first place.
    Huawei make very cheap windows phones but make no effort in marketing them.

    • Cormango

      or supporting them…

  • Lenn Liggins

    You’ve got to promote the phone first, if no one knows you’re selling it, who fault is that? There’s nothing wrong with the Windows os.

  • efjay

    And this is why Microsoft needs to be more aggressive with their devices. Their so called partners can turn on then in an instant and leave them hanging. Have some balls, Microsoft and tell fools like this to get stuffed!

    • dicey

      Who needs enemies with partners like this. Huawei introduced two awful devices that were less in every way than the Nokias and with 4gb internal memory. Wtf do they expect? Nobody wants crap like that when you can get a far superior Lumia 520/620 for less.

    • cybersaurusrex

      The question is… will Microsoft even bother if no one else is onboard? They have a history of abandoning products that don’t succeed.

      I really hate to say it… but things look dire for Windows Phone. I mean, 2.5% market share after four years? That’s terrible! And you can’t read a review of a Windows Phone without the reviewer saying… “But its app store still lacks a lot of apps”… which practically ends it for consumers right there. There are so many great options out there with Apple and Android, why should anyone compromise? Not to mention that salespeople at the phone stores actually steer people away from Windows Phone.

      The reality is that we’ve been waiting for Windows Phone to hit that 10% market share mark (that “threshold”) where it would finally takeoff… but instead it looks like it’s approaching the event horizon of a black hole… from which it may never return. It’s sad.

  • Jonathan Roberts

    Microsoft should really step in and offer to pay for the marketing for third parties. There really is no incentive to release a WP.

  • SpicyMikey

    This is a business after all. Gotta do what makes money. Can’t blame them. Having said that, I think this says more about Huawei, and their inability to compete against Nokia, HTC, etc. in this small low end / low margin sub-segment. It’s somewhat of a non story to me

  • bibleverse1

    Huawei had some terrible devices in the US.

  • Joe_HTH

    LOL! Nobody is making any money with Android, except for Samsung which makes all of the profits. So why are they releasing Android phones?

  • Ian Too

    Although Mr Yu’s comments aren’t as bad as some and at least he’s not badmouthing MS, this is another case of whinging CEO syndrome. It seems electronics OEMs want Microsoft to do everything for them – they just want to push out mediocre devices and let the rising tide lift them along with all the other boats to profit. Android didn’t just take off, it was SOLD. Similarly, if Mr Yu wants an alternative to Android, he’s going to have to help BUILD it.

    Right now, Mr Yu is a link in the chain of shame which is leaving millions – perhaps billions – of people open to identity theft and fraud by selling Android devices which do not delete user information upon reset. Being in China, Mr Yu is selling devices open to malware and making a profit from that. What do you think the odds are that he will recompense users affected by electronic fraud?

    The question for these quisling CEOs is: What makes you think I or anyone else is going to buy your wares if you can’t take a constructive approach to selling them?

  • Mark Gibbs

    They remind me of Sprint, Release cheap crappy phones late and charge a boat load for them and wonder why no one buys them. I remember the win7 phone the arrive. the phone was worth maybe 50 bucks on contract and the charged 199.99 for the life of the phone never dropped the price … WTF…

  • tofferne

    Windows phone need one low end phone, like 630, all other devices need to be a high end. We need Nokia 630, 930, 1030 and 1530. These other OEMs can do the same or make one low and one high end, or atleast try to be a little bit serious. Anyway, I will never buy some Huawei products.
    But Huawei did it very bad and in very short time, I think it’s related to all the problems the Chinese government try to make for MS, never trust a Chinese or a Russian.

  • Tips_y

    I can’t say I’ll miss Huawei having not seen a single Huawei WP out in the market but I’ve plenty of their Androids though.

  • Duel

    Well windows phone hardly was profitable even for Nokia, nokia is like samsung in android world, very very hard to beat. Interesting to see the situation after when nokia wp phones doesnt exist anymore. Can those other OEMs take a nokia place or is it end of windows phone. I think we know this early next year.

  • Rod Iron

    Translation… “We have no plans to make anything but hemroid phones, we just don’t want Google to know that ;)”

  • Malcolm Williams

    And this guy is not shocked. Honestly. Should I be shocked?

    Windows hasn’t been profitable to this point. Whether or not it becomes profitable is anyone’s guess