After the development of the mobile phone business was limited, Huawei's consumer business began to adjust its strategy and tactics, first renaming Huawei's consumer business to "Huawei terminal business", and secondly adjusting the business model of Huawei's consumer business from toC to toBtoC (facing both end consumers and enterprise-level users), in addition, Huawei also continued to expand the scope of consumer business, focusing on the field of IOT.
Huawei's consumer business is renewed
"The name of Huawei's consumer business has gone through a decade, and for the past decade, we have been building products and experiences for consumers, and in the future, Huawei will bring experiences from consumer-grade products to the commercial field." On the afternoon of April 20, Yu Chengdong, managing director and CEO of Huawei's terminal business, announced through an online meeting that Huawei's "consumer business" was renamed "terminal business" and officially entered the commercial terminal market.
Yu Chengdong introduced that in the future, Huawei's terminal business will fully cover the two modules of consumer products and commercial products, with consumer products continuing to focus on serving mass consumers, and commercial products focusing on serving government and corporate customers.
Yu Chengdong also revealed that in the future, Huawei's terminal business will rely on the two ecosystems of hardware and software to continuously enrich the product categories of commercial notebooks, desktops and monitors, tablets, smart screens, wearables, etc., focusing on providing commercial office solutions for the government and six major industries such as education, medical care, manufacturing, transportation, finance, and energy.
For the above strategic adjustment, Huawei believes that commercial offices are ushering in a turning point to a full-scenario intelligent experience, and the commercial equipment market is now entering the 3.0 era of cloud and AI after experiencing the 1.0 era centered on commercial desktops and the 2.0 era of multi-device integration, and commercial office electronic devices are evolving towards high performance, intelligence, full connectivity, and new forms, and all-scenario integration and intelligent interaction are its main characteristics.
Huawei said that based on Huawei's software and hardware ecosystem and service system, Huawei terminals have provided many commercial solutions for the government and various large and medium-sized enterprises, such as paperless offices, smart classrooms, computer classrooms, mine employee safety operation collaboration, interactive insurance solutions and other industry-level product solutions.
Taking insurance services in the financial industry as an example, there are a series of problems such as serious homogenization, difficulty in obtaining customers, low-frequency interaction, etc. In the transformation from the C-end to the B-end, Huawei will introduce wearable devices and tablets into this industry, and enterprises can promote insurance product innovation through the dynamic data support of Huawei WATCH B5, provide personalized insurance solutions, realize interactive health management through dynamic underwriting, and create a closed loop of the whole life cycle health management system with the model of "wear data + insurance + health service" And visualize health data management through Huawei Tablet C5.
In terms of products, Huawei terminals have officially established commercial product lines, bringing 7 series of commercial product families to the government and major industries: notebook MateBook B series, desktop MateStation B series, display B series, flat panel C series, printer PixLab B series, smart screen B series, and wearable WATCH B series.
The relevant person in charge of Huawei said that at present, Huawei terminals have completed the first phase of the full-line layout in the commercial office field, taking commercial office as a key area of long-term strategic investment, aiming to create smart productivity tools and smart office experiences for all walks of life.
Grab food with some legions of Huawei?
After encountering US sanctions, due to 5G chips, Huawei's mobile phone business revenue and net profit fell sharply.
Huawei's 2021 annual report shows that the consumer business achieved revenue of 243.431 billion yuan in 2021, a sharp drop of 49.6% year-on-year, and the proportion of revenue fell to 38.2%, falling back to the second largest source of income, and the last time this structure accounted for in 2017.
At its peak, Huawei's consumer business revenue accounted for half of Huawei's total revenue, and Huawei's mobile phones also surpassed Samsung to the top of the world for the first time in the second quarter of 2020. According to the latest authoritative research institute data, Huawei's mobile phone market share has fallen out of the global and domestic top five.
How to make up for the loss caused by the decline in mobile phone business? This may be a question that Yu Chengdong, CEO of Huawei's consumer business, has been thinking about for a long time in recent years.
Judging from the situation observed by the reporter, Huawei's consumer business has tried its best to make up for the decline in mobile phone revenue by increasing the size of mobile phone peripheral products, smart homes, smart cars and other businesses, and now it is pushing the toB business, or intending to help government and enterprise customers accelerate digital transformation through the sales of overall solutions, while driving the sales of Huawei's software and hardware (terminal products and solutions).
"At the moment of comprehensively promoting the digital transformation of governments and enterprises, how to seize the wave of digital transformation, conform to the trend of diversified eras by reconstructing office methods, build a more agile digital working mode, and lead the development of business innovation to reduce costs and increase efficiency is one of the core propositions for enterprises to build core competitiveness for the future." Hua said this or said part of the logic of Huawei's terminal business to fully enter the commercial market.
It is worth mentioning that at the end of February this year, Huawei established ten new legions of interactive media (music) and sports health, of which Wu Hao, the leader of the interactive media (music) reserve corps, joined Huawei in 2008 and was the first product manager in Huawei's consumer Internet field; Zhang Wei, the leader of the sports health reserve corps, joined Huawei in 2000 and was the president of Huawei's consumer business smart wear and sports health product line.
Ren Zhengfei once said that the establishment of the legion was to quickly gather resources in the form of a corps organization, improve efficiency, do a deep job in one field, and produce more grain.
In addition, Huawei has been engaged in government and enterprise affairs for many years, that is, relevant solutions for enterprise-level customers.
In this way, huawei's terminal business will fully enter the commercial field business, which slightly overlaps with the above-mentioned businesses, but it is believed that there is a clearer business scope within Huawei.
Not long ago, when Huawei held the inauguration ceremony of the new ten legions, Ren Zhengfei said that when the current international situation is changing and we are facing more and more stringent suppression, our company must stabilize its position, actively adjust the formation, firmly create value for customers, and cannot waver, so it is necessary to adopt flexible and mobile strategies and tactics. In this way, the adjustment of Huawei's terminal business also draws on this idea to a certain extent.
(Editor-in-charge: Zhang Qianye)
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