Source: smart Tech Review
Abandoned child glory has been reborn. What will Huawei do with Nova, mate and P series, which cover the middle and high end? What are the options for Hisilicon?
The glory after independence has taken the first step of rebirth, while the mate, P and Nova series of Huawei’s medium and high-end brands are still pursuing their own way out.
Yesterday, Reuters reported exclusively that Huawei was negotiating with a Shanghai government backed corporate Consortium on the sale of high-end smartphone brands P and mate due to blocked supply chain. Huawei will sell relevant departments of Shanghai terminal, including tablet and other products, or sell them together, the source said.
It is worth noting that Reuters often takes the lead in the development of a series of rumors about Huawei’s overseas obstruction and glory sale.
Just like the reaction when the rumors about the glory sale started, Huawei quickly denied it. On January 25, Huawei terminal said: “Huawei has no plan to sell its mobile phone business at all. Huawei will continue to build a world leading high-end smart phone brand and strive to provide consumers with excellent product experience and services.”
Maintaining the high-end Mate Series requires a lot of resources and a large market scale
Zhiwu learned that Huawei’s options for the remaining brands have existed for a long time. However, as previously revealed in the article “variable glory” by Zhiwu, Huawei is still looking for the opportunity to retain its mobile phone business and wait for the change to happen. It only needs a very high cost to maintain this huge business chain.
In the next three months, Huawei’s decision makers need to make a decision.
——Referring to glory’s plan to sell mate, P and Nova to Shanghai’s state-owned assets system, this plan is not the first choice. As the core equipment of intelligent terminal in the future, it is difficult to give up completely.
Soon, Huawei’s latest folding screen mobile phone mate V will be on the market, and the stock size is far larger than the previous generation mate XS.
——More likely, Huawei will open its brand to China Mobile, China Telecom and other operators, and even other hardware and industry chain manufacturers. Huawei, operators and other enterprises jointly operate to maintain the existence of Huawei brand.
When it comes, fight again.
01. What’s the end of Huawei’s high-end brand?
Referring to glory, the direct sale of all high-end brands may not be the top choice of Huawei, but the will of Huawei’s CBG team. Huawei is one of the world’s leading smartphone manufacturers, so it is difficult for Huawei to give up all of them.
According to the test data of BCI, in the first week of 2021, the weekly sales of vivo and Xiaomi have already surpassed Huawei, while the latest data shows that the market share of vivo and Xiaomi has reached 21.3% and 17.4%.
Correspondingly, Huawei’s chip dilemma has not been improved, so Huawei’s current basic strategy is to use limited chips to extend the life cycle of mobile phones indefinitely. According to Huawei insiders, Huawei has not stopped the research and development of P-Series and mate series, and will release P50, mate 50 and other models in the future.
However, taking into account the previously released mate 40 series and the recently released mate V, Huawei’s second generation folding screen mobile phone, Huawei will have four products equipped with Kirin 9000 chips in the future.
According to media reports, TSMC delivered 8 million Kirin 9000 chips to Huawei before the last round of blockade, which obviously can not support Huawei’s four product lines.
In this case, the sale of CBG business may be a last resort, but it also means that Huawei has completed the real sense of “self breaking arms”, not only giving up the smart phone market, but also the painstaking efforts of the IOT product line. To return to the smart phone market in the future is like starting from scratch.
It seems that brand cooperation is a better solution. It is rumored that Huawei will come up with mate and P series brands to discuss in-depth cooperation with several operators such as China Mobile, and even other intelligent hardware manufacturers.
Does the plan sound familiar?
Unite operators to leave a chance for Huawei’s high-end brand?
In the 3G era, Huawei and ZTE earned the first pot of gold in the mobile phone market by relying on the operator’s OEM machine. However, Huawei later grew into the leading high-end brand in the industry, and ZTE never got rid of the label of OEM machine.
But this cooperation will be essentially different from the past. Operators and other partners will be responsible for the brand operation of mate and P series, while Huawei will provide mobile phone design, R & D, supply chain management organization, and management of OEM production.
The advantage of this is that mate and P series can break the blockade of the supply chain through operators, and Huawei can continue to engage in R & D work as a “smart phone solution provider”, which has reserved the fire for the mobile phone business and an option for itself to make a comeback.
02. The question of Hisilicon is inevitable?
Whether it’s selling the whole mobile phone business to SASAC or choosing to carry out in-depth cooperation with operators, we can’t avoid a question: what should Haisi do?
When the pressure suddenly comes, Ren Zhengfei and Xu Zhijun have stated on various occasions that they will continue to support the follow-up development of Hisilicon. But the question is, when the glory is given away, and the fate of mate and P is yet to be determined, how much value and cost will Huawei keep Hisilicon?
Whether or not Huawei’s brand chips will be supplied by Qualcomm and MediaTek in the future, and Hisilicon will completely lose Huawei’s access to the sea.
Two years ago, Huawei founded Hubble investment. Public information shows that since its establishment in April 2019, Huawei has invested in 23 chip companies, covering semiconductor materials, EDA software, semiconductor equipment, semiconductor instrument testing and other fields, striving to complete the layout of the entire semiconductor industry chain.
However, due to the characteristics of “long cycle and heavy assets” in the semiconductor industry, these investments are doomed to fail to have an immediate effect, and the prospect of Hisilicon is still not optimistic.
It is rumored that Huawei is seeking independent chip manufacturing to continue and maintain Hisilicon’s survival. But it’s bound to be a long process.
Previously, the industry has been analyzing the possibility that Huawei could break up the situation by splitting up Hisilicon and selling it to state-owned assets. Another glorious project.
HUAWEI has regenerated a lot of advanced technology, and at the same time, let Hass have the possibility of cooperating with OVHM and other mobile phone factories, which can really get 5G patent benefits.
Now, this rumor is growing again: Hisilicon is developing independently, while Huawei is tying up a highly respected top leader.
03. Let’s talk about Huawei auto. Pure Internet of vehicles has no future
With a lot of money in hand and the mobile phone business blocked, it’s time for Huawei to reconsider its auto strategy.
In 2019, Huawei launched the hicar solution and reached a cooperation with Geely to enter the new car market. Subsequently, Huawei released its first car smart screen. It is reported that this smart screen is equipped with Huawei’s Hongmeng operating system, which realizes seamless interconnection with mobile phones through hicar, and can be installed without changing cars.
Through hicar and smart screen, Huawei has entered into the new car market and aftermarket respectively. However, at this time, Huawei seems to have no interest in the whole vehicle market. In an organizational change document in 2019, Huawei approved the establishment of Bu, the intelligent vehicle solution. The document points out that “Huawei does not build cars, focuses on ICT technology, and becomes a supplier of incremental ICT components for panel cars to help enterprises build a good car market “Car”.
There is a big market for the Internet of vehicles, but first you have to have a really good car
The question is, what is a good car? Beyond Tesla, can Chinese state-owned enterprises and so-called new forces build good cars?
On November 4, last year, Changan Automobile announced that it would cooperate with Huawei and Ningde times to build a new high-end intelligent car brand. Subsequently, a number of media have revealed that Huawei has successively applied for a number of reducer and powertrain patents in 2020.
These are obviously not the “ICT focused technologies” mentioned by Huawei.
It can be seen from the public information that Huawei’s CBG department is integrating with the intelligent vehicle solution Bu, and the integrated intelligent vehicle solution Bu will be listed under the consumer BG Management Committee. According to Huawei sources, this so-called transfer does not mean the beginning of the brand of “Huawei automobile”.
Not long ago, in an EMT document issued by Huawei in 2020, Ren Zhengfei said in a rare way that “anyone who proposes to build a car or interfere with the company in the future can be transferred from his post and seek another post.” At the bottom of the document is also marked with a line of small words: “this article takes effect from the date of issue, valid for three years.”.
Three years is enough time for Yu Chengdong to get through the whole supply chain of electric vehicle industry.