In less than two years, Huawei has been hit by four rounds of U.S. sanctions and seven months after breaking its core, its cell phone business has suffered a heavy setback. To survive, Huawei not only participated in smart pig farming, fish farming and cross-border car sales, but also signed a cooperation agreement with a Hong Kong cosmetics retailer on Tuesday evening.
In the evening of May 4, Hong Kong cosmetics retailer Joy Holdings announced in the Hong Kong Stock Exchange that Joy Holdings and Huawei implemented cooperation in co-branding marketing, and its wholly-owned subsidiary Joy Technology Services Limited entered into a non-binding memorandum of understanding with Hong Kong Huawei International Limited.
The content of the memorandum shows that Huawei will establish smart retail stores and provide technical support for Joyo through solutions such as big data analysis, electronic payment and WiFi6. Joyo hopes that the number of stores in the mainland will reach 3,000 in 2 to 3 years.
It is understood that Hong Kong Huawei International Limited is a subsidiary of Huawei, responsible for the purchase and sale of communication products.
Recently, Huawei’s cross-border operations have been in the news. On February 15 this year, the mainland media reported that Duan Aiguo, president of Huawei’s machine vision field, broke the news on the Internet that Huawei Machine Vision had launched a smart pig farming solution. The development direction of the farming industry is digital, intelligent and unmanned.
Bloomberg reported on March 15 that Huawei had not long ago undertaken an order for a large fish farm in China’s coastal provinces and a large coal mine in Shanxi.
In addition, Huawei is also involved in building cars. on April 19, at the Shanghai International Auto Show, Huawei announced the launch of a new category of Huawei Smart Ecology products with Celis – Celis Huawei Smart SF5, which is the first time Huawei Smart added a car category.
In less than two years, after experiencing four rounds of U.S. sanctions, Huawei’s cell phone business suffered a heavy setback.
Yu Chengdong said that the U.S. sanctions round is harsher than round, forcing Huawei’s cell phone business to extreme hardship, with the high-end cell phone market ceding to Apple and the mid- and low-end markets being divided among OPPO, Vivo and Xiaomi.
Recently, IDC announced the first quarter of 2021 global smartphone shipments report shows that Huawei fell out of the top five for the first time in years, while Apple, Xiaomi, OPPO and Vivo all saw substantial growth. Among them, Samsung reclaimed the first place with 75.3 million units shipped and 21.8% market share; Apple, Xiaomi, OPPO and Vivo ranked second, third, fourth and fifth in that order. These four manufacturers benefited from the market released by Huawei’s cell phone, and shipments rose sharply, by 50.4%, 64.8%, 64.5% and 40.7% in that order.
The heavy setback in the cell phone business dragged down Huawei’s overall performance, and in the first quarter of 2021, Huawei’s revenue suffered one of the more serious declines in recent years. The latest data show that in the first quarter, Huawei’s revenue was 150.57 billion yuan, down 16.92% year-on-year; net profit attributable to the mother was 16.847 billion yuan, up 26.63% year-on-year.
Xu Zhijun, Huawei’s rotating chairman, said, “2021 is still a challenging year for Huawei.”
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