In the blink of an eye, 2021 is coming to an end, and 2022 is coming. This morning, Huawei's official website released the 2022 New Year speech of rotating chairman Guo Ping. He said that the current external environment continues to be turbulent, and the ICT industry is facing challenges such as the politicization of technology and the division of globalization. In the future, Huawei should maintain its strategic focus and rationally deal with external force majeure.
Strategically, Huawei insists on focusing on ICT infrastructure and smart terminals, and while maintaining the advantages of a large platform, shortens the management chain, quickly meets customer needs, and creates commercial and social value through the pilot operation of industrial subsidiaries and legions.
The focus is on performance, and it is expected to achieve sales revenue of about 634 billion yuan in the whole year of 2021. A brief analysis shows that Huawei's revenue in 20 years was 891.4 billion yuan, and its revenue in 21 years was 634 billion yuan, down 28.9% year-on-year. Fourth-quarter revenue alone was $178.2 billion, down 19 percent year-over-year. Whether from the perspective of the whole year or a single quarter, Huawei's performance this year is not satisfactory.
In terms of detailed spin-offs, Huawei's revenue mainly includes consumer business, carrier business, and enterprise business, and more than half of the total revenue is contributed by consumer business, which is the top priority. However, according to the data disclosed by Huawei 21H1, the revenue of the consumer business 21H1 was 135.7 billion yuan (255.8 billion yuan in the same period last year), down 46.95% year-on-year.
Huawei revenue (100 million yuan, divided by business)
Source: Company Financial Report, CITIC Securities Research Department
The reason is that on September 15 last year, the US ban on Huawei officially came into effect, and Huawei's mobile phone shipments began to decrease rapidly, according to Counterpoint data, Huawei's global shipments in 2020Q2 were 54.8 million units, and only 33 million units in 2020Q4.
In November 2020, Huawei officially decided to sell the Honor business, and Honor began operations as an independent mobile phone brand manufacturer. After the divestiture of Glory, Huawei's global mobile phone sales have further shrunk, according to Omdia data, the global shipments of Huawei mobile phones in 2021Q1 and Q2 are only 14.7 million and 9.8 million units. It can be said that the sanctions imposed by the United States have made Huawei very uncomfortable.
Global quarterly shipments of Huawei and Xiaomi mobile phones
Source: Compiled by Guosen Securities Economic Research Institute
In the face of difficulties, Huawei focused on pure soft business and actively expanded the business represented by Hongmeng System. Huawei released a new multi-terminal, cross-OS, all-scenario Huawei mobile service core capability HMS Core 6, mobile service HMS has become the world's third largest mobile application ecosystem, Huawei released HarmonyOS 3, equipped with more than 150 million devices, while Hongmeng system is accelerating "getting on the car" and "entering the mine".
On December 23, 2021, Huawei held the 2021 winter new product launch conference, and Huawei's Hongmeng Auto AITO Q&A M5, Huawei P50Pocket, Huawei smart glasses, Huawei smart watches and other new products were all unveiled.
Source: Official website of the company
Huawei folding screen mobile phone new P50 Pocket can achieve seamless folding of the fuselage, the rear lens supports fluorescent photography function, priced from 8988 yuan.
The folding mobile phone market has been more than two years of technical iteration: folding methods, designs, materials and operating systems have been continuously tested and optimized, which has basically met the needs of consumers; in terms of price, with the continuous addition of market players and the reduction of technical costs, the price of folding screen mobile phones has dropped from 15,000-20,000 yuan to about 8,000 yuan, and the cost performance has been greatly improved.
DSCC expects folding screen phone sales to climb to 3.8 million units in the fourth quarter of 2021, up 480% year-on-year and 215% sequentially, and folding screen mobile phone shipments are expected to grow to 17.5 million units in 2022.
At the same time, Huawei and the car company Xilix released the AITO Q&I M5, a smart car based on the Hongmeng operating system, and Huawei is deeply involved in software and hardware development, design, and channels. The car is equipped with Huawei's DriveOne pure electric drive range extension platform and Hongmeng intelligent cockpit, and will be launched on Huawei's sales channels.
Previously, Huawei's Hongmeng system and intelligent driving technology have been applied in BAIC, GAC, Xiaokang Xilis and other car companies, but on the one hand, the sales of The Alpha S and Cyrus SF5 using Huawei's high-end automatic driving system are less than expected, and the publicity and promotion of Huawei's intelligent vehicle ecology is limited.
On the other hand, due to the car companies' prevention of potential competition from giants, Huawei's intelligent car technology has not been fully demonstrated, so Huawei needs a comprehensive and representative model as a model to show its strength in technology, marketing, and channels, so as to attract more car companies to join its own ecology.
On the whole, Huawei's current model of cooperation with car manufacturers is a compromise solution in the face of supply chain challenges such as US sanctions, and in the long run, the possibility of Huawei directly building cars is not ruled out.
"Survive & survive with quality" has become the company's current strategic goal, including: consumer business through the active development of Hongmeng system, 4G mobile phone + IOT and other ways to maintain the continuation of Huawei's mobile phone brand, corporate business to cloud computing & software services is expected to help the company open up new space.
The road is obstructed and long, and the line is coming; the line is not quitting, and the future can be expected.