Preface
Last year, Apple's market value shrank sharply, and recently he announced his second-quarter earnings report, with revenue of $90.8 billion and net profit of $23.636 billion, equivalent to 170 billion yuan.
At the same time, Huawei's performance in the first quarter was very strong, with a net profit of 19.65 billion yuan.
However, Huawei is already so powerful, but Apple's profit is still 9 times that of Huawei!
Is it true that domestic products are not as good as foreign products after all?
Information source: Apple's latest financial report profit is about 170 billion yuan, and Huawei's profit is about 19.65 billion, reaching about 12% of Apple's profit - the financial world
Apple's market value has shrunk
Apple has always been the "god machine" in many hearts, whether in terms of performance or fluency, Apple's mobile phone is indeed superior to other mobile phones.
However, after the chip game between China and the United States, many Chinese people have boycotted Apple mobile phones and spontaneously used domestic mobile phones.
At the beginning of 2024, it is the time when spring flowers bloom and everything recovers, but Pinguo is the first to feel the first severe cold in 2024.
Information source: Apple's stock price suffered a "black start, and the market value evaporated 760 billion overnight - the financial world
On the first trading day of the new year, Apple's stock price was "upset", and its market value evaporated by 760 billion overnight.
This record also set the largest one-day decline among technology giants in recent years, and such a market value evaporation has naturally attracted the attention of many people.
As early as 2020, Apple's market value has exceeded 2 trillion, which is also a height that many companies can't do.
So, what is the reason for the evaporation of the market value of such a large tech giant overnight?
In fact, a large part of Apple's revenue comes from the iPhone.
Source: Apple's market value fell below $2 trillion for the first time in 21 months, shrinking nearly 30% in a year - Jiemian News
But last year, Apple revealed to suppliers that it would reduce the production of components for many of its products in 2023.
Faced with such a situation, Apple's supply chain has sometimes experienced continuous disruptions.
In addition, due to the epidemic, the output of many Foxconn factories in China has been affected, so it will lead to a continuous decrease in Apple sales in recent years.
As we all know, the chip game between China and the United States in recent years has also greatly affected the sales of Apple and other American companies in China.
The sum of various reasons has led to the evaporation of Apple's market value by 750 billion overnight!
With the sharp shrinkage of Apple's market value, some domestic brands such as Huawei and Xiaomi have gradually entered the public's field of vision......
Huawei is on the rise
Last year, Huawei Mate60 was born, which made many people who complained about "no good domestic machine" be "slapped in the face".
Huawei Mate60 is equipped with 100% domestic chips, Kirin 9000s, which is a real "Chinese core"!
Previously, Huawei once wanted to "abandon" the mobile phone business because of the suppression by the United States.
However, the strong return of the mobile phone business this time reflects Huawei's ten-year R&D investment.
In 2022, Huawei's R&D investment accounted for 25.1% of its annual revenue, totaling 161.5 billion yuan.
Source: Huawei's 10-year butterfly change: R&D investment of nearly one trillion yuan, innovation has become the key to survival and development - Times Weekly
In the past 10 years, Huawei's R&D expenditure has exceeded 977.3 billion yuan.
With such a high investment in R&D, Huawei has naturally received a lot of returns.
By the end of 2022, Huawei held more than 120,000 valid patents worldwide.
Not to mention that Huawei's R&D also involves 5G, AI chips and cloud computing.
No matter how difficult the external environment is, Huawei has never been stingy with its investment in R&D, and in the first half of 2023, Huawei will increase again.
From domestic components to operating systems, to databases and other fields, Huawei has embarked on its own path after encountering a series of supply disruption crises.
And all of this is inseparable from Huawei's investment in R&D!
However, even with such rapid growth, Huawei still can't compete with Apple.
Recently, Apple just released its own financial report, although it experienced a market value shrinkage last year, but the net profit is still 170 billion.
And Huawei's profit in the first quarter was only one-twelfth of Apple's!
So, what's going on here?
The profit is 12 times that of Huawei
According to the latest data released by market research agency TechInsights, in the first quarter of 2024, the shipment rate of smartphones in mainland China will reach 63.3 million units, an increase of 1% year-on-year.
However, in this table, Apple unexpectedly dropped out of the top five and was placed in the "others" category, which is what we call "others".
The top four on the ranking list are our domestic "four major brands", which are OPPO, Honor, vivo and Huawei.
You must know that Apple was still at the top of the list last year, and now it can only be classified as "other ranks", which makes it difficult for Cook to be uncomfortable.
However, just when everyone thought that Apple would "fall off the altar", Apple released its latest financial report some time ago.
In the latest quarterly financial report, Apple's net profit reached 23.636 billion US dollars, equivalent to 170 billion yuan.
Huawei's net profit is 19.65 billion yuan, but it only reaches 12% of Apple's profit.
In fact, behind such numbers is the trend that Huawei is trying to catch up.
Because in the first quarter of 2024, Huawei will ship 11.7 million units with its Mate and nova series of mobile phones.
Source: Canalys: In the first quarter of 2024, Huawei will regain the first place in the smartphone market in Chinese mainland - IT Home
It occupies 17% of the market share and regains the first place in Chinese mainland.
In comparison, Apple shipped only 10 million units, ranking fifth, down 25% year-over-year.
In recent years, with the continuous development of the game between China and the United States, "domestic production" seems to have become a way for many people to show patriotism.
Many young people also prefer to buy domestic goods as a way to support the development of domestic enterprises.
As for Huawei's current profits, this is not a question worth digging too into.
In fact, there is no need to worry too much about such a situation, because we have only started "domestic substitution" in recent years.
The development of anything is not achieved overnight, it requires a process.
In the future, domestic substitution must be an inevitable trend!
Domestic substitution is an inevitable trend
Huawei's gradual banditry has long made the United States feel a little "broken", because they have not been able to prevent Huawei's rise despite all their defenses.
I thought that Huawei Mate60 had long been the "ceiling", but I didn't expect that this time Huawei's Pura70 was really "the last straw that crushed the West".
In the past, mainland mobile phone manufacturers basically relied on foreign imports, and even Huawei could not avoid such a situation.
Since Huawei P10, it has always relied on foreign components, and the localization rate at that time was not even 30%.
At that time, Qualcomm's SOC, Samsung's NAND flash memory, and Canon's lenses were also well-known internationally.
With the encirclement and interception of the United States and the West, Huawei can only bite the bullet and go on its own.
From the original 30%, to this Huawei PUra70, Huawei's localization rate has almost reached 100%.
Under the dismantling of professional institutions, they found that except for the lens of the Pura70 Ultra, which uses Sony's CMOS, almost all the other parts are domestic.
Like the 5G chips in mobile phones, as well as screens and RF chips, they are all domestic originals.
To quote the CEO of ASML: "The more you restrict China, the more he has to make a difference!" And do better! ”
It can only be said that localization will be able to get better and better in the future!
Information sources:
Apple's latest financial report profit is about 170 billion yuan, and Huawei's is about 19.65 billion, reaching about 12% of Apple's profit - the financial industry
Apple's share price suffered a "black start, and the market value evaporated 760 billion overnight - the financial world
Apple's market capitalization fell below $2 trillion for the first time in 21 months, shrinking nearly 30% in a year - Jiemian News
Huawei's 10-year transformation: R&D investment of nearly one trillion yuan, innovation has become the key to survival and development
Canalys: In the first quarter of 2024, Huawei will regain the first place in the smartphone market in Chinese mainland - IT Home