They already make good phones for the mid sector, which SHOULD dominate due to price, however there is Zero availabilty of the good huawei phones in the UK, and the US just slammed the door in their face.
That and Chinese prefer fashionable brands if they can afford it, and if not, there are much cheaper brands in China beside Huawei.
Their real challenge is marketting past the stigmatism and getting into foreign markets with a big push, not pipedream 6" monstrosities.