Huawei launches new products to diversify revenue sources

Huawei launched a series of new products ranging from phones, smart watches, smart home systems to an electric car named the AITO M7 SUV, as it is still seeking to diversify its sources of revenue amid the years-long U.S. sanctions. The products were unveiled at its flagship summer launch event held online and offline in Shenzhen, Guangdong province, home to its headquarter. The most eye-catching products are the Nova 10 phone series featuring strong photography capability with its self-developed HarmonyOS. He Gang, President of Huawei's mobile phone product line, said that the number of Nova users has reached more than 200 million globally as of June this year.

Another highly anticipated product was the new electric car after the company had emphasized its ambition in the vehicle sector several times, saying it will increase investment in autonomous driving and step up cooperation with carmakers, while reiterating its decision to stay out of manufacturing cars. Yu Chengdong, CEO of the Consumer Business Group at Huawei, said it has sold more than 10,000 units of the AITO M5 and delivered 11,296 units within just 87 days after the car hit the market. The AITO M5 was launched in December 2021 and started deliveries in March this year. “AITO has become the fastest growing smart electric vehicle brand,” Yu said.

Huawei is increasing its investment and publicity in the non-mobile phone business. It is still hoping to find new growth points to offset the decline in the mobile phone business, Jiang Junmu, a veteran industry analyst, told the Global Times. Huawei's revenue continued to trend lower over the first quarter of the year, which came in at CNY131 billion, down 13.9% on the previous year. Its net profit margin shrank by 6.8 percentage points to 4.3% for the first quarter. Whether it can replicate the success of the mobile phone business in new markets such as auto accessories only time will tell, Jiang said. In a memo to company staff, Founder Ren Zhengfei said that Huawei must do a good job of open communication and eliminate all those who prevent opening up. “As long as people with conservative thoughts speak hesitantly, it is difficult to absorb the energy of others to improve themselves,” Ren said, as reported by the Global Times.