Huawei to increase focus on consumer business after record-breaking smartphone sales
Huawei plans to go “all in” on its smart ecosystem in 2019, following an expected 50% year-on-year increase in revenue from its consumer business in 2018, according to a company executive.
In a year-end letter to employees, CEO of Huawei’s consumer business Yu Chengdong said the company saw record-breaking results in 2018, with revenue expected to reach $50 billion. Boosted by demand for its P20, Honor 10, and Mate 20 smartphones, Huawei shipped more than 200 million devices during the first three-quarters of 2018.
As a result, the company plans to increase its focus on its consumer-facing business, going “all in” on its smart ecosystem, which will encompass 5G, artificial intelligence, and the Internet of things (IoT).
Last month, Huawei overtook Apple to become the second largest smartphone manufacturer in the world, according to market research firm International Data Corporation (IDC).
The peak in performance comes amid increased stress on its overseas operations. The Trump administration is reportedly pondering an executive order that would include prohibitions on purchasing equipment from China’s Huawei and ZTE. Apart from the US, countries including the UK, Australia, New Zealand, and Japan have implemented measures to limit the inclusion of Huawei equipment in their 5G infrastructure.
“Huawei’s consumer business will aim to provide smart life experiences of all kinds to global consumers in the next five to 10 years,” Yu wrote in the letter.
He said he believes smart devices would form a trillion dollar market, and that Huawei hopes to be a leading force in the industry.
Yu said consumers would expect “a total revolution of [user] experience” in 2019, highlighting the importance of consistent research and development, and timely use of new technologies. The company plans to seek more partnerships with industry players, universities, and institutions for innovation in core components.
In China, the company has seen growing support following the arrest of its CFO Meng Wanzhou. Earlier this month, a tourist site in the inland province of Henan gave free entry to Huawei smartphone users as part of a promotion. Additionally, Shenzhen-based company vowed to provide subsidies to employees for purchasing Huawei handsets while penalizing staff who buy iPhones.