Yu Chengdong, CEO of Huawei's terminal business
Huawei's consumer business was renamed
Since then, there has been no Huawei consumer business group in the world, and on April 20, Yu Chengdong, managing director of Huawei, CEO of terminal business, and CEO of Smart Vehicle Solution BU, officially announced that Huawei's consumer business group was officially renamed as the terminal business group, followed by a decline in status - the consumer business group, one of Huawei's three major business groups in the past, no longer exists.
Huawei's consumer business announces a name change
The consumer business group was once Huawei's brightest star, and in 2020, it contributed up to 482.9 billion yuan in revenue – accounting for more than half of the 891.4 billion revenue in 2020. The huge revenue from the consumer business has also laid a solid foundation for Huawei's investment in the field of research and development, and Huawei's R&D expenses have increased year by year from 89.7 billion yuan in 2017, 101.5 billion yuan in 2018, 131.7 billion yuan in 2019, and 141.9 billion yuan in 2020.
Huawei once beat Samsung to the top of the mobile phone sales champion
Once the most important growth engine
With the sudden rise of the consumer business, Huawei has also begun to enter a positive cycle of R&D investment and profit growth - huge R & D investment has brought Kirin chips and Hongmeng systems to Huawei, and the rise of mobile phone chips and systems has also given Huawei a weapon to compete with Apple, with the world's second-ranked R & D investment, Huawei finally surpassed Samsung in the second quarter of 2020 to reach the top of the global mobile phone sales ranking.
Kirin chips are the killer of Huawei's consumer business
Without chip blockade, 2020 may be a new starting point for Huawei's complete rise - with the dual arrows of Kirin chips and Hongmeng systems and the long-term layout in the field of Internet of Things, Huawei will likely create an ecological environment comparable to Apple, and continue to maintain a positive growth model of high R&D investment and high profit income.
But unfortunately, with the intensification of chip blockade, Huawei's momentum in the consumer market has also been pressed the pause button - Huawei's revenue in the consumer field plummeted from 482.9 billion yuan in 2020 to 2434 in 2021, and the almost half-fold decline also indicates that the consumer business is facing great difficulties. What is more serious is that this dilemma cannot be seen to improve, and because the chip blockade is still continuing, Huawei's dilemma in 2022 may be more severe than in 2021.
The construction of Huawei's ecosystem with mobile phones as the core has gradually stagnated with the serious shortage of mobile phone supply, which not only affects Huawei's layout in the field of science and technology, but even fields such as new energy vehicles have also been greatly affected. For Huawei, it is also time to change.
Huawei terminal services
Change is also a new starting point
At the new product launch on April 20, Huawei launched 7 commercial product families: notebook MateBook B series, desktop MateStation B series, display B series, flat panel C series, printer PixLab B series, smart screen B series, wearable WATCH B series.
With the renaming of Huawei's consumer business group to Huawei's terminal business group, this also means that Huawei's terminal business must get out of the shackles of the consumer field and begin to fully enter the commercial field. This is actually a natural choice, and applying consumer experience and products to the commercial field can not only alleviate the pressure on Huawei's revenue, but also open up a new growth area.
At the same time, due to Huawei's accumulation in the field of technology, it has a good influence in itself. After Huawei increases investment in the commercial field, enterprises including Lenovo, Tongfang, and Inspur will face a lot of impact. The commercial sector, which has been stable for a long time, will also usher in a round of fierce competition.
Huawei
Who can be the winner of this competition? Let's wait and see!