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Today to talk to you: Huawei's total revenue fell by 28.6% year-on-year, but profit increased by 75.9%, where does this profit come from?
At the end of March, Huawei held a 2021 financial report conference, at which Huawei CFO Ms. Meng Wanzhou, released a series of data, under the relevant restrictions, Huawei's total revenue fell by more than 200 billion, leaving only 636.9 billion, down 28.6% year-on-year, consumer business fell by 49.6% year-on-year, but unexpectedly, the profit reached 113.7 billion, an increase of more than 75.9%!
Many people will wonder why profits have increased so much as the total revenue has fallen. Seeing such data, everyone's first reaction, basically feel that Huawei has been out of the predicament, the impact of relevant restrictions on Huawei has been lifted, but in fact, this is only a superficial phenomenon, Huawei is still facing a certain dilemma, there is a reason for the reverse growth of revenue, then where does this profit come from?
Where huawei's profits come from
In the three years that have been restricted, Huawei has been expanding its business scope, more energy has been invested in the software business, the lack of chip supply, the decline of the consumer business has been obvious, can not rely on the sale of mobile phones to maintain the normal expenses of enterprises, can only pin hopes on the software business, and similar to smart cars, cloud services, artificial AI intelligence and other businesses, although the prospects are good, but the competition is fierce, the rate of return is low!
After the chip developed by HiSilicon Semiconductor can not be produced, Huawei's return on investment ratio is also reduced a lot, can adhere to the technology research and development of each business, indicating that Huawei still has enough cash flow, then really as the outside world sees, Huawei is not short of funds?
First of all, the profit in 2021 includes more than 300 billion yuan of sales of glory, as well as some 5G technology patents collected, after losing glory, Huawei also directly lost the low-end mobile phone market, in the peak period of glory brand sales, but accounted for 60% of the total revenue of Huawei's mobile phone business, but fortunately, with the growth of 5G business, it can also make up for the lack of revenue to a certain extent, but the hidden crisis still exists.
Domestic enterprises help each other
Although Huawei's business is widely distributed now, but the main business is still a communication business, and the potential is also the largest, Huawei's advantages in 5G technology are unquestionable, fortunately, at present, it has been helped by the three major operators, can use the domestic supply chain, they have been fully replaced, according to data statistics, Huawei's current proportion in the domestic market has reached more than 60%.
Nokia, Ericsson, which previously occupied most of the share, has been gradually replaced by Huawei, telecom, mobile, Unicom also understand, China's enterprises should help Chinese enterprises, Nokia in the recent three major operator bidding in the grain no, and Ericsson is not much better, the market share plummeted by 74%, in Europe and the United States to reject Huawei 5G, the most reliable can only be their own enterprises.
At present, Mobile has stated: "As long as Huawei has goods, I will buy!" "Every year Huawei can receive a large number of mobile server orders, but under the relevant restrictions, after the chip supply interruption, Huawei did not get any mobile orders, many people were blaming mobile ungratefulness, but in fact, it was because Huawei servers could not be mass-produced and could not meet production demand."
Follow-up mobile has not buried Huawei, according to the latest data from this year, the mobile procurement of server orders, Huawei can provide all the production capacity, Huawei server accounted for 16.55%, which also gave Huawei enough confidence.
According to the recent bidding results released by Unicom, Huawei has won 100% of the share of multiple projects, supplying, installing, system debugging and other supporting services for multiple projects, and the follow-up business cooperation will be more, Unicom has given up cooperation with Nokia and Ericsson to the greatest extent, as long as Huawei can provide long-term equipment supply in the future, it is certainly indispensable in market share.
The United Kingdom said: "The suspension of cooperation with Huawei is not a subjective will, but out of the pressure of the United States!" "Also very good for Huawei 5G name, the so-called security problem is basically nothing, successively obtained tens of billions of orders from Brazil, Turkey and other countries, once Huawei 5G can restore the global layout, this part of the revenue, will certainly be able to directly replace the consumer business."
The rise of Huawei's software business
According to the financial statements, Huawei has also achieved very good results in the growth of cloud business, ranking among the top five in the world in terms of market share, and with Huawei's guarantee in the market reputation, I believe that many companies will be willing to cooperate after that, which will also give Huawei greater energy.
Although huawei has problems in the server business because of the lack of cores, but with the in-depth research and development of the RISC-V architecture, the follow-up will certainly be able to achieve independent localization to get rid of the dependence on the X86 architecture, and Huawei has also achieved very good results in smart cars, Hongmeng systems and other services, and these are the main sources of their revenue, what do you think about this?