Huawei has made a strategic move in the smartphone market by launching its new sub-brand called Ultimate Design, which aims to compete with Samsung’s Galaxy brand. The sub-brand will focus on producing ultra-high-end smartphones that offer top-notch materials, powerful specifications, and ultimate craftsmanship. This move comes as Huawei continues to face adversity, including restrictions on access to advanced technologies. The first device released under the Ultimate Design brand is the Huawei Mate 60 RS. While Samsung has stuck with its singular Galaxy brand for all its devices, Huawei’s sub-brand approach could provide an opportunity for Samsung to reconsider its strategy and potentially create a sub-brand for its entry-level and mid-range segments. By doing so, Samsung could solidify its Galaxy brand as premium-only and enhance its dominance in the smartphone market.
Huawei Launches Ultimate Design Sub-Brand
Huawei’s Response to Adversity
Huawei has faced significant challenges in recent times due to US restrictions on the company. These restrictions have resulted in limited access to advanced technologies and semiconductor technologies. However, Huawei has responded to this adversity by launching new products and focusing on the high-end segment of the smartphone market.
One such response is the launch of the Huawei Mate 60 Pro, a device that offers 5G-level download speeds. This smartphone utilizes advanced semiconductor technology, and Huawei hopes that it will help turn things around for the company in the high-end segment.
Introduction of Ultimate Design
In addition to the Mate 60 Pro, Huawei has also introduced a new sub-brand called Ultimate Design. This sub-brand will focus on the development and release of ultra-high-end smartphones. These devices will go above and beyond Huawei’s normal flagship phones in terms of design, features, and craftsmanship.
The first device to be released under the Ultimate Design brand is the Huawei Mate 60 RS Ultimate Design. This device will showcase the top-notch materials, powerful specifications, and ultimate craftsmanship that Huawei is aiming for with this sub-brand.
Features of Ultimate Design Phones
The Ultimate Design phones will differentiate themselves from Huawei’s other flagship devices through the use of top-notch materials, powerful specifications, and ultimate craftsmanship. These smartphones will provide users with a true ultra-high-end experience.
By utilizing premium materials, such as high-quality metals and glass, Huawei aims to create devices that offer an exquisite look and feel. The powerful specifications of these phones will ensure excellent performance and enable users to handle demanding tasks with ease. Additionally, Huawei will pay meticulous attention to craftsmanship, ensuring that every detail of the devices is meticulously crafted to perfection.
Comparison to Porsche Design
Before launching the Ultimate Design sub-brand, Huawei was releasing ultra-high-end smartphones under the Porsche Design moniker. However, the company has decided to transition these devices to its own sub-brand, and the Ultimate Design brand was born.
The decision to change the branding from Porsche Design to Ultimate Design likely stems from Huawei’s desire to establish its own distinct identity in the ultra-high-end segment. While the Porsche Design branding added a level of prestige to the devices, Huawei now wants to establish itself as a premier brand in this space.
Huawei’s History with Sub-Brands
Huawei has a history of utilizing sub-brands to cater to different segments of the smartphone market. One notable example is the ownership of the Honor sub-brand, under which entry-level, mid-range, and premium mid-range devices were released.
However, Huawei sold off the Honor sub-brand in November 2020 to a state-owned company controlled by the municipal government of Shenzhen. This move allowed Huawei to focus on its core business while also enabling Honor to flourish under new ownership.
Chinese OEMs and Sub-Brands
Huawei’s use of sub-brands is not unique among Chinese smartphone manufacturers. Many Chinese OEMs organize their device lineups using sub-brands, with the main brand typically focusing on high-end devices and the sub-brands targeting the mass-market segment.
Huawei takes a slightly different approach by focusing entirely on the high-end segment with its Ultimate Design sub-brand. By doing so, the company aims to establish itself as a leader in the ultra-high-end space and differentiate its offerings from other Chinese OEMs.
Samsung’s Approach to Branding
Samsung, in contrast to Huawei, has preferred to stick with a singular brand for its devices – the Galaxy brand. Whether it’s entry-level smartphones or foldable devices, Samsung launches them all under the Galaxy moniker. This approach has allowed Samsung to build significant brand equity around the Galaxy name.
Under the Galaxy brand, Samsung has created several lines, such as the Galaxy A, Galaxy S, and Galaxy Z, each catering to different price segments and target audiences. However, there has been debate about whether Samsung should adopt a sub-branding strategy to further refine its product offerings.
Challenges with Galaxy Brand
Maintaining a singular brand like Galaxy has its challenges. One potential challenge is brand dilution. With a wide range of devices under the Galaxy name, the brand may lose some of its exclusivity and high-end perception. The proliferation of devices in different price segments could lead to confusion among consumers about what truly constitutes a high-end Samsung device.
Another challenge is the perception of device spam. Samsung’s numerous device launches, such as the upcoming Galaxy FE lineup, have raised concerns about a potential flood of products in the market. Launching a sub-brand could help address these concerns by allowing Samsung to categorize and differentiate its devices more effectively.
Benefits of Creating a Sub-Brand
Creating a sub-brand could bring several benefits to a company like Samsung. By establishing a sub-brand for entry-level and mid-range devices, Samsung could adopt a two-pronged approach to the market. The Galaxy brand would continue to be synonymous with top-of-the-line flagships and foldables, reinforcing its position as a premium brand. The sub-brand, on the other hand, would be dedicated to addressing the opportunities in the entry-level and mid-range segments.
This approach would allow Samsung to maintain the perception of the Galaxy brand as high-end while also maximizing its presence and offerings in other segments. By strategically utilizing a sub-brand, Samsung could refine its product lineups and better cater to the diverse needs and preferences of consumers.
Expanding Dominance in the Smartphone Market
As Samsung looks to expand its dominance in the global smartphone market, launching a sub-brand could be a strategic move worth considering. Several rivals, including Huawei with its Ultimate Design sub-brand, have found success by adopting this approach.
Samsung’s recent pace of device launches raises questions about the need for a more refined branding strategy. By leveraging a sub-brand, Samsung could solidify the Galaxy brand as a premium-only brand, particularly as it strives to lead the way in the foldable phone segment.
In conclusion, Huawei’s launch of the Ultimate Design sub-brand demonstrates the company’s resilience and determination to excel in the face of adversity. The introduction of this sub-brand allows Huawei to further differentiate its ultra-high-end smartphones and establish its presence as a premier brand in this segment. Samsung, on the other hand, could learn from Huawei’s approach and consider adopting a sub-brand to enhance its competitive edge in the smartphone market.