Huawei sticks to its pledge to halt Windows Phone development

Huawei has reiterated that it does not plan on producing any phones running Microsoft's (NASDAQ: MSFT) Windows Phones software, after having produced two Windows Phones. "We didn't make any money in Windows Phone," Joe Kelly, Huawei's head of international media affairs, told the Seattle Times. "Nobody made any money in Windows Phone." Huawei first indicated in August it would be halting Windows Phone development. Microsoft has been working with other OEMs based in China and India to develop entry-level Windows Phones in a bid to boost the platform's market share.

Huawei has been facing tough competition from fellow Chinese smartphone player Xiaomi, which in the third quarter of this year surpassed Huawei to become the world's No. 3 smartphone player, according to research firm IDC. Xiaomi has thrived in putting high-end features into low-cost phones, though the company also most likely has very low margins. Huawei does not plan to compete much with Xiaomi in the low-margin market and is instead focusing on higher-end phones, likely as part of its Ascend series of devices. "We will lose volume in that shift," Kelly admitted. Article