NEW YORK (TheStreet) -- Huawei has crashed the smartphone party with the hopes of beating the field, not just on price but also performance.

It's every company's fear: a cheaper competitor moving into the neighborhood with a similar product.

When Huawei enters the market, goes the saying, profits take a beating. Well, China's huge tech shop has hit the phone market with a pretty decent first step. The Huawei Ideos is a Google ( GOOG - Get Report) Android 2.2-powered phone with a 2.8 inch touchscreen, a 3.2-megapixel camera and -- more importantly -- a $150 price tag.
Huawei-Ideos

The Huawei phone is expected to arrive in the U.S. later this year, likely as a pre-paid offering by T-Mobile or AT&T ( T), judging by its 3G-plus GSM technology.

This is not good news for outfits like Research In Motion ( RIMM), HTC, Dell ( DELL) and particularly Motorola ( MOT), which are all in a bitter market share battle with Apple ( AAPL) in the smartphone arena.

The arrival of Hauwei, says JPMorgan's Rod Hall in a note Friday, "could pressure smartphone average selling prices and make it challenging for relatively smaller scale players such as Motorola to maintain their margins."

--Written by Scott Moritz in New York.

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