Huawei's consumer business is adapting to a challenging market environment by prioritizing the development of smartphones equipped with its proprietary 'LogicFolding' chip, which was launched on October 1, coinciding with China's National Day.
Executive Director Richard Yu highlighted the company's ambition to regain its overseas market share, which has dwindled from over 240 million smartphone shipments in 2019 to just a few million annually outside China. The company aims to expand its HarmonyOS operating system internationally within the next one to three years, contingent on improvements in China's chip manufacturing capabilities.
The consumer business, once Huawei's largest revenue source, saw its revenue halve to approximately $34 billion in 2021 due to U.S. sanctions but is projected to grow to around $51 billion by 2025, representing 39% of total revenue. Concurrently, Huawei's electric vehicle (EV) segment, which collaborates with various Chinese manufacturers, has generated at least $6.7 billion in revenue for 2025.
However, the overall Chinese auto market is experiencing a significant downturn, with sales down over 20% in the first three quarters of the year, and Huawei's EV deliveries have also declined, contrasting sharply with competitors like BYD and Leapmotor.
Despite these challenges, Huawei has committed to a five-year partnership with Seres Group to enhance its Aito EV line, indicating a continued investment in the automotive sector even as it faces headwinds