Chinese smartphone Company Huawei, has moved to shut down its mobile service division in due to a poor response to the Companies “sell direct” marketing initiative and also the continuing cash crisis which has hit the country.
Techunzipped understands is reliably informed that the company has not renewed contracts of workers who worked with in the division. According to the source terminal division has been scaling down since the beginning of the year and last month (31 August) the department has been closed down.
In 2015, Huawei took Gtel Robert Gonye, marketing director and a number of people key player from their rival. Since his arrival at the company. The phone maker tried to introduce franchise model for its phones but it seems most of the shops have closed down like the one at join city.
The Company has not said whether their consumer business that spans smartphones, watches and mobile devices was profitable, or how much revenue is being generated in Zimbabwe.
The cash crisis has hit worst cell phones importers and some have resorted to buying cash and increasing the prices, some have been out of stroke for more than six months now. Other industries hit hard are the manufacturing sector industry and the mining sector, which contributes about 40 percent of the country’s export receipts.
Those who still lust after the company’s phones will now have to look to import the devices from South Africa.
The company is now focusing on its carrier business division which has huge contracts with large corporate and parastatals.
Of course, this does not mean that this is the end of Huawei phones. Quite the contrary, in fact. If they can manage to push lower end devices into the market, they can certainly manage to come out on top. Despite any mistakes committed in the past, Huawei is still a very recognizable name, particularly in specific niches.