Huawei is on road to become the number 1 smartphone manufacturer by 2020. Of course, Huawei is doing really good at falling smartphone market. The company has more to give in future years. Let’s see what we have and will be…
In the 2018 financial report released by Huawei, the annual revenue was 721.2 billion yuan and the net profit was 59.3 billion yuan. The consumer terminal business (CBG) revenue accounted for 48.1%, which has become the main source of its revenue.
In Huawei’s business, the importance of the consumer terminal sector is increasing, and smartphones will become the main source of growth in the next few years.
Recently, Huawei authorized the consumer terminal sector to reform independently and has an independent decision on the organizational structure and compensation system.
The power requirement is that the revenue of the consumer terminal sector in 2023 will reach $150 billion US dollars, three times that of 2018.
The reform of the consumer terminal sector is part of the reform plan announced by Ren Zhengfei, the founder of Huawei, pointed out that Huawei’s “reform of the company’s reforms, the first is the operator BG (CNBG), and the second is Consumer BG. CNBG reform is our strategic focus, focusing on making the pipeline connection business a world strategic high ground, so we authorize CBG “corporate battle” to let you reform independently. What is the authorization? Organizational structure design and compensation system The Consumer Management Committee still has jurisdiction over the business system. Within the boundaries of organizational design and compensation distribution, let go of the experiment and give you five years to see if you can build an iron army.”
Under this goal, Huawei’s consumer terminal division’s revenue in 2023 will reach 150 billion US dollars. In 2018, Huawei’s consumer terminal sector revenue was 348.9 billion yuan, about $52 billion US dollars, which means that the target after five years is three times the current level.
In order to achieve this goal, Huawei’s consumer terminal department’s smartphones will increase significantly in both sales volume and unit price.
The consumer terminal department is not only a mobile phone business, but the proportion of mobile phone revenue is monopolistic, and other products are not counted.
Huawei’s 2018 smartphone shipments reached 206 million units, and this year’s target is 250 million units, which is expected to hit 270 million units.
According to the current average price level, Huawei’s smartphone sales will reach 600 million units in the next five years. This is looking a little tough. The global smartphone shipments are only about 1.4 billion units per year.
Huawei’s previously mentioned smartphone shipment target is to impact 400 million units. Samsung’s highest record reached only 350 million units, but at least this goal is still possible.
Even if it reaches 400 million units of sales, triple revenue means that Huawei’s average mobile phone price will increase by at least 50%.
Last year, market research company Counterpoint Research counted the average price of mobile phone brands in the world from April to June, including Apple and Samsung. The average iPhone price is 724 US dollars, Samsung is 247 US dollars, Huawei is 265 US dollars, but this data is not the whole year, only a specific stage, in general, the average price of Apple mobile phones is more than 700 US dollars, Samsung average price is still better than Huawei About 20% higher, Huawei has room to rise in ASP average price.
However, looking at the ambitious goal of Huawei’s consumer terminal department, this dream is so big that it is hard to believe that it can be realized.
The revenue of 150 billion US dollars means not only three times the current level, but also the revenue of Apple’s iPhone. However, around 160 billion US dollars, this is still achieved under the super premium.
There will be no surprise to see a future Huawei mobile with a starting price of $1500 USD. What do you think about the current pricing of Huawei’s flagships? Let us know in the comments below.
Huawei established new Digital Energy Technology company to research on digital energy
Huawei established a new company registered under the name Shanghai Huawei Digital Energy Technology Co. Ltd. The company has Zhou Taoyuan as its representative with a registered capital of 20 million yuan.
The main objective of the company is to research and develop the most efficient energy resources. Its work mainly involves:
- Online energy metering technology research and development.
- Online energy monitoring technology research and development.
- The power industry energy-efficient technology research and development.
- Emerging energy technology research and development.
- Energy recovery system research and development.
The establishment of Shanghai Huawei Digital Energy Technology shows that Huawei may conduct research and development in the field of electric vehicles, deepening its existence in vehicle manufacturing.
Looking at the equity prices of Huawei solely owns the company with 100% Digital Energy Holdings. It can be regarded as Huawei’s yet another fully owned subsidiary.
Huawei already has a number of patents registered related to the automotive industry. The Chinese tech giant is also working on a number of technologies for autonomous driving.
There are several patents that Huawei has applied that can optimize algorithms, realize all-weather operation, automatic parking, and more.
Huawei and GAC plans for smart electric SUV
In the related news, the GAC Group has recently announced its partnership with Huawei. Both these companies are planning for a new smart SUV that will integrate all the smart car solutions of Huawei and the resource of GAC.
It will be a pure electric vehicle. Furthermore, this smart car is said to enter mass production by the end of 2023. Read more here
(Via – It Home)
Huawei joins the list of top three global innovators, jumped two place compared to last year: EU Rankings
The 2020 EU Industrial R&D Investment Scoreboard ranks the research investment levels of 2500 companies across the globe that covers 90% of the world’s business-funded R&D.
According to the 2020 EU Industrial R&D Investment Scoreboard, Huawei heads to third place which is a jump of two places compared to last year. In 2019, the Chinese tech giant has got fifth place on the scorecard.
Huawei’s Chief Representative to the EU Institutions said – “The EU confirms that Huawei is now among the top three innovative global companies. To maintain the European way of life for its future generations, Europe will need to use the best technologies and innovations. Huawei stands ready to team up with Europe for a joint bright future,”
Most of the global research that Huawei carries out takes place in Europe. The company has established its first research center in Sweden in the year 2000. With a series of partnerships with over 150 European universities, Huawei is deeply embedded within the ICT research ecosystem in Europe. Through this collaborative research activity, Huawei makes Europe fit for the digital age.
Huawei believes that international research collaboration strengthens EU competitiveness and contributes to climate change mitigation, thus strategically supporting the European Green Deal.
Trump orders US companies to look for an alternative to China, stocks slide
On Friday, U.S. President Donald Trump said, “our great American companies are hereby ordered” to “immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA.”
The U.S. President also said he is ordering all carriers, including Fed Ex, Amazon, UPS, and the Post Office, to SEARCH FOR & REFUSE,….all deliveries of Fentanyl from China (or anywhere else!). Fentanyl kills 100,000 Americans a year.
….better off without them. The vast amounts of money made and stolen by China from the United States, year after year, for decades, will and must STOP. Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing..
— Donald J. Trump (@realDonaldTrump) August 23, 2019
President Xi said this would stop – it didn’t. Our Economy, because of our gains in the last 2 1/2 years, is MUCH larger than that of China. We will keep it that way!” he added.
Mr. Trump tweeted. “I will be responding to China’s Tariffs this afternoon.”
….all deliveries of Fentanyl from China (or anywhere else!). Fentanyl kills 100,000 Americans a year. President Xi said this would stop – it didn’t. Our Economy, because of our gains in the last 2 1/2 years, is MUCH larger than that of China. We will keep it that way!
— Donald J. Trump (@realDonaldTrump) August 23, 2019
The U.S. President tweets came after China hiked tariffs on $75 billion of U.S. products.
According to CNBC, Semiconductor stocks and shares of Apple slide after President Trump tweets. Shares of Apple fell as much as 4.5%, while the VanEck Vectors Semiconductor ETF declined 4%. Among the chip companies, Qualcomm slid 4.5%, Nvidia lost 4.8%, Advanced Micro Devices dropped 6.6%, Micron fell 4.2% and Broadcom slid 5.3%.
The tech-heavy Nasdaq was off 2.1%, while the Dow Jones Industrial Average slid 2.2% and the S&P 500 fell 2.4%.