Due to well-known reasons, Huawei's smartphone business has fallen out of the top five in the world in the first quarter of 2021, and sales have been declining all the way. Huawei's third-quarter revenue was also affected by the poor consumer business. However, Huawei still has a clear strategy, insisting on innovation and seeking breakthroughs.
Homemade mobile phones are still 4G versions
In the middle of this year, Huawei released the P50 high-end flagship mobile phone. At that time, Huawei also mentioned that the P50 series is not equipped with 5G technology, and only provides a 4G version, which adopts AI heterogeneous communication. Yu Chengdong said that Huawei has advanced communication technology. After encountering four rounds of sanctions from the United States, the P50 series will not be equipped with 5G technology and only provide a 4G version. However, it adopts AI heterogeneous communication, four-network collaboration, dual-network concurrency, and AI signals. Prediction, etc. to achieve a smooth communication experience. The 8GB version of the Huawei P50 Pro series will be released with the Kirin 9000 chip, and the Qualcomm Snapdragon 888 chip will be equipped later. The 12GB version of the P50 Pro series will all use the Kirin 9000 chip, while the P50 series will all use the Qualcomm Snapdragon 888 chip. They are all 4G versions.
Smartphone shipments in the Chinese market in the third quarter of 2021 released by Counterpoint Research show that smartphone sales in China in the third quarter of 2021 fell by 9% year-on-year, but increased by 3% month-on-month to 76.5 million units.
Among them, vivo ranked first, OPPO second, and Honor rose to third. Huawei ranked sixth, accounting for 8%. In 2020, Q3 Huawei's shipments accounted for 30%. From these data, we can see that Huawei's mobile phone shipments have fallen behind other major mobile phone manufacturers.
In the field of 4G mobile phones, in addition to high-end flagship models, Huawei's Nova mobile phones also use 4G versions. For example, Huawei Nova9 uses Snapdragon 778G and does not support 5G networks. Of course, with many years of brand reputation and Hongmeng system, even Huawei's 4G mobile phones are still bought by many users. 4G mobile phones still have a certain market space for survival.
Huawei participates in the 5G market in a "workaround" way
The launch of the 4G version of the smartphone is a last resort for Huawei, after all, 5G is the general trend. Does Huawei really want to give up this market? Obviously not. It can be said that Huawei has adopted a workaround to expand cooperation with third-party manufacturers.
Just in the past two days, TD Tech launched a 5G mobile phone N8 Pro, priced at 3999 yuan for 8GB+128GB. Let's take a look at its configuration:
This 5G phone has a 66W super fast charge, a 120Hz super curved screen, a 64MP quad camera, and a triple hybrid cooling system. The biggest highlight of this phone is that it uses the Kirin 985 5G SoC chip. In addition to its debut on JD.com, the phone will also be listed on Huawei Smart Choice.
The phone uses the Kirin 985 5G SOC. Affected by the ban, this batch of chips should belong to Huawei's own inventory. However, when the inventory is always exhausted, if 5G mobile phones are continuously launched in the form of cooperation, Qualcomm's 5G chips will not be ruled out in the future.
Huawei Smart Selection has assembled the products of Huawei's ecological chain partners, and Celis, which previously cooperated with Huawei and Xiaokang, has also listed Huawei Smart Selection.
Huawei's 5G mobile phone circle of friends is constantly expanding. Previously, the industry had reported that Huawei would sell the Nova brand business, but this rumor was quickly denied. According to Fans of Juchang Pictures, a mobile phone called Hinova will be released, but it does not belong to Huawei. Its parent company is China Post and Telecommunications Equipment Group. It is also a 5G phone, powered by a Qualcomm Snapdragon chip and serviced by Huawei.
Obviously, Huawei's partners have begun to launch some mobile phones one after another. Through this cooperation method, Huawei can not only avoid the embarrassment of not having 5G chips, but also convert research and development results through third parties and obtain a certain amount of revenue. This also reflects from the side that Huawei has not given up the 5G mobile phone market, but participated in another way.
Xu Zhijun, the rotating chairman of Huawei, once said: "Huawei will not give up the mobile phone business, nor will it sell the mobile phone business. We are working hard, and working hard, to get the mobile phone business back on track at an appropriate time." Maybe one day we will see It's time for Huawei to officially return with a 5G mobile phone.
Huawei's third-quarter revenue declined year-on-year, forming five major armies to explore the road to victory
On October 29, Huawei announced the company's revenue in the first three quarters, achieving sales revenue of 455.8 billion yuan and a net profit margin of 10.2%. Guo Ping, Huawei's rotating chairman, said that the overall operating results were in line with expectations, the To C business was greatly affected, and the To B business was stable. In the future, we will continue to strengthen technological innovation, R&D investment and talent attraction, and continuously improve operational efficiency.
In the first three quarters of 2020, Huawei's revenue was 671.3 billion yuan. In comparison, the revenue in the first three quarters of 2021 fell by more than 210 billion yuan. A rough calculation shows that the average quarterly revenue is 70 billion yuan less.
Also on October 29, Huawei held a legion formation meeting in Songshan Lake Park. The slogan of this meeting was "No retreat is the road to victory."
The Huawei Corps is composed of five armies: the Coal Mine Corps, the Smart Highway Corps, the Customs and Port Corps, the Smart Photovoltaic Corps, and the Data Center Energy Corps, with a total of more than 300 members and is directly led by Huawei founder Ren Zhengfei. The establishment of the legion at this time is to hope that each legion will take on the heavy responsibility of charging into the battle during the critical period of the company's development. At the scene where the team assembled, the legion also shouted the oath of Huawei's victory.
Ren Zhengfei said at the inaugural meeting that peace is achieved. We must work hard and sacrifice heroically to create a peaceful environment for the next 30 years, so that no one dares to bully us again. We are doing it for ourselves and our country. To lay down one's life for the country, the sun and the moon shine together, the phoenix nirvana, the people and the sky look up together. History will remember you, and when we drink the celebration wine together, we will hear the thunder in a silent place!
The consumer business once accounted for half of Huawei's total revenue. From quarterly revenue and smartphone shipments, we have clearly seen that Huawei's TOC business is shrinking.
Huawei has made several adjustments to its business structure before, such as integrating the consumer BG with the smart car BU, which is under the responsibility of General Manager Yu Chengdong. Later, Yu Chengdong also served as the president of Huawei Cloud and Computing BG. In April of this year, Huawei revoked the cloud and computing BG, and further optimized the organizational structure. Looking at it now, the five major armies will become an important layout for Huawei to expand its business revenue.
Going back to 5G, Huawei has a first-mover advantage, has a large number of patents, released the world's first 5nm 5G SoC, and more. Despite being sanctioned, he is still trying not to fall behind and facing challenges with the belief that he will win.
Responsible editor: haq