
(Reuters) -
China's Huawei, little known to consumers just a couple of years ago, is
now leading the pack of smartphone makers chasing Apple(
AAPL.O) and Samsung, with ZTE, another Chinese company, snapping at its heels.
Huawei, which sold 32 million
smartphones in 2012, up 60 percent on 2011, unveiled its new flagship
Ascend P2 smartphone in Barcelona, boasting a connection speed of 150 MB
per second, the fastest on the market.
The
company was third in smartphone sales in the final quarter of 2012,
according to research firm IDC, with ZTE in fifth place and Sony
sandwiched in between. Samsung and Apple, however, were far in front
with half the market between them.
Wan
Biao, chief executive of Huawei Device Co, said the Ascend P2's faster
download speeds would make a difference to customers using 4G networks
in countries such as Japan.
The
device also includes power-saving technology, developed using expertise
from its networks business, which Biao said helped it stand out against
other high-end phones running Google's (
GOOG.O) Android software.
"Our
target is for Huawei to provide the best smartphones in the world,
better than the iPhone, better than Samsung," he said in an interview on
Monday. "Our target is top three in market share."
Huawei,
which became established by selling unbranded phones to operators, said
the Ascend P2 would be available from the second quarter priced at 399
euros, hundred of euros less than flagship devices from its rivals.
Biao
said that the company was still establishing itself as a brand in the
minds of consumers, so its phones did not attract high subsidies from
network operators.
"Operators give a
high subsidy to Samsung and Apple," he said. "We have a very high
quality product but the price we set is not as high as these two
smartphones; we have to develop differentiated products."
Analyst
Carolina Milanesi at Gartner said the Ascend P2 was a notable step
forward for the Chinese company, showing a focus on the most important
aspects for consumers, such as speed, an impressive screen and longer
battery life.
ZTE, which also
developed its technology by making devices for others, is equally
ambitious. On Monday, it said it expected to increase smartphone revenue
by 30 percent this year.
"We at
ZTE consider ourselves as not tier one yet, we see ourselves as tier
two, comparable to HTC, Sony and Motorola," He Shiyou, head of mobile
services division, said in an interviewer via a translator. "We have to
be as aggressive as possible."
He
said ZTE would reduce its product range to achieve larger sales of fewer
models, and focus on the strongest markets for smartphones - the United
States, China, Europe and Australia.
It
previously took ZTE six months to catch up with the Samsung's software
and hardware specifications, he said, but now it only took a quarter.
"We need to close that gap," he said.
"By
2015, we are hoping to achieve the top three by market share, but in
terms of branding image and also pricing segmentation, we want to reach
the top five," he said.
ZTE
unveiled a 5.7 inch Grand Memo handset in Barcelona, firmly in the
"phablet" screen dimensions that Samsung has popularised in its Note
range, and the ZTE Open, a smartphone running on Mozilla's Firefox OS
open ecosystem.