It is reported that Yu Chengdong, CEO of Huawei’s consumer business, revealed at a recent Huawei internal conference that Huawei’s global shipments of mobile phones will be about 230 million this year, surpassing Apple’s mobile phones and ranking second in the world. When the international environment is not friendly, it is not easy for Huawei mobile phones to achieve the set goals. 230 million units! Although this shipment is still some distance from the prediction of “250 million units” by Yu Chengdong, head of Huawei’s consumer business at the beginning of the year, considering the current international environment, Huawei’s mobile phone performance is already very excellent.
Looking back on the course of the past three years, Huawei’s mobile phone business has jumped from 153 million units in 2017 to 206 million units in 2018, and then to 230 million units this year, which can be said to be a higher level in a year. It is not easy for Huawei to achieve such performance. From the beginning of 2019, Meijian has implemented “entity list” and other strike measures against Huawei, putting great pressure on Huawei from the supply of electronic parts at the hardware level to the Android operating system at the software level. Under various adverse circumstances, Huawei quickly adjusted and launched the “spare tire regularization” plan for key parts, putting into use the software systems and chip components already under development. Effective coping strategies enable Huawei to effectively avoid most of the pressure brought by the United States.
According to the prediction of strategy analytics, a Market Research Institute, the total shipment of apple in 2019 is about 193 million units. Based on this calculation, Huawei’s mobile phone shipments will exceed Apple’s by about 37 million units, and the gap between the two sides is greater than that in 2018. Huawei has proved with facts that the US crackdown has failed to stop the rise of Huawei.
Huawei shipped 230 million mobile phones, a victory of technology + market
In the past two years, the whole smartphone market has encountered a bottleneck. According to the quarterly tracking report on mobile phones released by International Data Corporation (IDC), in 2018, the overall market shipment of smart phones in China fell by more than 10% year-on-year. Several data research institutions predict that the smartphone market will continue to decline in 2019.
In this context, Huawei, which is already at the forefront of the world in terms of shipments, has still achieved rapid growth. The driving force of Huawei’s growth against the trend largely comes from its strong technological innovation strength.
At the MWC 2019 world mobile conference in Barcelona in early 2019, the collapsible screen mobile phone mate x exhibited by Huawei became the focus of global attention. In terms of folding mobile phones, in fact, Samsung launched products earlier than Huawei, but in the subsequent trial process, Samsung’s products suffered a “rollover” event due to quality problems, while Huawei’s mate X was widely praised. Since then, Huawei’s technological innovation capability in the mobile phone field has become a new benchmark.
In March 2019, Huawei released its flagship high-end smart phone P30 series focusing on photography and life. Once released, the machine has become a popular model in the market with 50x digital zoom.
In July 2019, Huawei’s first BOC 5g mobile phone, Huawei mate20 x 5g, was released.
In August 2019, Huawei held a Huawei developer conference in Dongguan and officially released the operating system Hongmeng OS.
In September 2019, Huawei released the first integrated 5g SOC chip Kirin 900. Since then, Huawei has released a number of 5g models, such as Huawei mate30 5g series, Huawei nova6, etc
Huawei’s mobile phones have been selling well in the past two years. In addition to its relatively good combination of technology and products, the omni-channel marketing innovation under its dual brand strategy has also contributed.
In the past mobile phone field, each brand had a clear distinction between online and offline markets in marketing. The marketing game of focusing on cost performance online and seizing medium and high-end offline has once become the “Convention” of the industry. However, Huawei broke this practice and carried out revolutionary marketing innovation in the grand strategy of parallel promotion of Huawei / glory brands, realizing the synchronous development of online and offline markets.
Huawei is not only powerful behind the 230 million shipments of Huawei mobile phones
In early December, there was a report on Huawei’s mobile phone. The Wall Street Journal quoted the disassembly report of Swiss bank and Japanese technology laboratory Fomalhaut techno solutions, saying that Huawei’s new flagship mobile phone mate 30 Pro did not contain parts made in the United States.
The report also said that as early as 2012, Huawei was listed as a national security threat by the U.S. Congress. On the one hand, Huawei began to hoard parts, on the other hand, it began to find suppliers from countries outside the United States, and began to develop its own alternative parts. Such as Kirin chip and Baron modem chip used in Huawei mobile phones.
According to the report, Huawei is really powerful. Its strength lies not in its asset scale, nor in its product shipments, but in its control over the supply chain of core products.
According to media reports, Huawei currently has 92 core suppliers in the world, which are distributed all over the world and in all walks of life. Moreover, Huawei is also strengthening the localization of key components. According to the list of all supply chain enterprises of Huawei mate 30 series given by the previous semiconductor organization, the localization degree of Huawei mobile phones is improved again compared with the past. In the supply chain list of Huawei mate 30, there are well-known domestic brands such as BOE, TCL, huiding technology and Lixun precision. It should be noted that Huawei has at least two suppliers for almost every component or process.
In other words, Huawei has a special supplier collaboration platform. Qualified enterprises can submit their own materials as required. After review, they can become Huawei’s suppliers.
Huawei has not only built a strong supply chain, but also a fast iterative potential based on the supply chain. This is the reason why Huawei runs fast and stable. This fast iterative supply chain capability has stronger adaptability and faster iteration speed than the supply chain system that has been used by apple and Samsung for many years.
Huawei’s 230 million mobile phone shipments rely not only on a local force, but on Huawei’s strong ecosystem and potential energy mechanism. Behind it is a strong basic plate made in China.