Dividends and Huawei aims to be world’s No 1 smartphone vendor

In an article by Sijia Jiang of Reuters, China’s Huawei Technologies Co expects to ship more than 200 million smartphone to become the world’s top vendor of the devices.

Huawei recently displaced Apple as the No 2 smartphone vendor in the June quarter. No 1 is Samsung. The growth for Huawei is coming from Europe and China. The premium phone is known as P20 and Huawei has sold more than 9 million units since its launch in April and in the over $500 smartphone, Huawei has a global share of 16.4%

If you do not know the brand in the US, it is because none of the big carriers sell the phone because of concerns the brand helps China spy on the users. The company denies the concern. The company has focused on Europe, Middle East and Africa where it saw a 73% revenue growth. In China the growth was 37%.

Linking to dividend paying stocks, in every category there is competition. Some of the competition you will know the brands, some you will not know. Just remember there is always competition trying to eat into the margins of profitable companies. It is important as you do your homework, how does the company make money and can it continue to keep their margins to continue to pay the dividends?

There are more questions than answers, till the next time – to raising questions.

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