HOW TO BUY HUAWEI STOCK IF IT HAS AN IPO

Huawei stockInvestors may be looking to buy Huawei stock now that the company released its first smartphone into the U.S. market. The Mate 9 is finally available to buy online as well as in Best Buy and a few more retailers. It is the first smartphone to use Amazon’s Alexa digital voice assistant and costs $600 for the 5.9 inch phone. 

Huawei is seen as the biggest threat to Samsung as the company sold about 139 million units and its phones use the Android operating system. That puts Huawei in third place (behind Samsung and Apple) with a goal of penetrating the U.S. market and gaining significant Android market share. 

Huawei is a Chinese company that at this time remains private and so it is impossible to buy its stock. However, if the company continues to perform well and make inroads against its competitors, it is possible that some time in the next three years or so the company might decide to go public. 


Why Is There No News About A Huawei IPO?

Huawei is said to be owned mostly by its employees but what exactly that means for this Chinese company is largely unknown. It is conceivable that with the complicated ownership structure, the Chinese government is somehow a partial owner which would complicate any desire to go public. It is known that the biggest individual ownership share goes to founder Ren Zhengfei who has rejected the idea of having an IPO based on his belief that “shareholders are greedy“, but that interview was way back in 2014.

Since then there have been periodic rumors of the company exploring the possibility of an IPO as it expands into an increasing number of world markets. But there is still little to no concrete information about any prospective Huawei IPO and it seems like investors will have a long wait ahead of them, much like anyone waiting for a Xiaomi IPO.

Additionally, Chinese companies that decide to go public will often do it on a Chinese stock exchange which complicates things for prospective foreign investors. In such a situation, unless the company issues ADR’s which allow foreigners to buy the stock, investors that do not have an account with a Chinese stock broker will be out of luck. 


Will Huawei Be Successful In The United States?

Clearly the company wants to become a world player in the smartphone market but very few people in the United States have heard of Huawei or even know how to pronounce the name. This means it will be very difficult to win over U.S. consumers who are very familiar and loyal to Samsung and Apple.

One way the company hopes to achieve its goals is by innovating faster than its competitors. Huawei had a big presence at the 2017 Consumer Electronics Show and stated that it wants to eventually have its phones include AI, computer vision, air and taste sensors, and robotics. 

It is rumored that Huawei’s next phone generation will be the P10 and P10 Plus and will go on sale in the March/April 2017 time frame. It is unclear whether those models will be released in the United States and if so, when they will go on sale. One thing is clear though, successfully marketing to U.S. consumers will be an important step in Huawei’s grand plan of becoming the largest cell phone manufacturer in the world. Investors hoping to buy Huawei stock should be watching closely to see how the company performs in the next handful of years to see what inroads it can make in the very competitive smart phone industry. 


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