Huawei’s various businesses require a large number of chips, including servers, base stations, mobile phones, TVs, etc. Most of the chips are independently developed and designed by Huawei, and it relies on foundry processing to meet the large number of chips required every year. However, after contract manufacturing and procurement channels are restricted, it means that Huawei will explore a new way out.
In the context of chip constraints, we cannot use chips as lavishly as before. We basically use limited sales of products to extend the mobile phone business cycle.
Although the outside world does not know how many chips Huawei has in reserve, what is known is that Huawei will not give up the development of its mobile phone business. In addition, there is basically no big problem in meeting the needs of To B customers, and other types of chips are quite abundant.
However, Huawei not only focuses on mobile phones, but also deploys it in other fields. Therefore, regarding chips and future plans, Huawei's rotating chairman Xu Zhijun has publicly spoken out. At the 2021 Huawei Global Analyst Conference, Xu Zhijun said that Huawei must use its existing inventory to survive as long as possible, and for this reason, it must be more focused. Regional markets and customers.
From Xu Zhijun’s statement, we can know that Huawei will focus on more regional markets and provide services to more customers.
The development of these markets is outside of chips, such as software, Internet, finance, smart cars and other fields.
These aspects do not need to rely on chips. For software, there is Hongmeng system, for the Internet, there is Huawei Cloud. In the financial field, Huawei has obtained a payment license and is also qualified to enter. As for smart cars, Huawei will probably invest US$1 billion this year and focus on layout.
These regional markets are very different from Huawei's business in the past decade or so. Huawei started in the communications business and became a world giant in the consumer business field. But software for future planning, finance and the Internet are all new directions.
It seems that Huawei has taken this step and officially transformed into software and the Internet. On the one hand, it can get rid of its dependence on chips. On the other hand, once the transformation is successful, Huawei will be able to achieve the same strength as the mobile phone business in other business areas in the future.
Even if the mobile phone market share is the same by then, chips cannot be supplied in large quantities, and it will not affect Huawei's future development after transformation. Huawei's transformation journey has begun. In facing a wider market area and customer groups, Huawei is transforming from hardware to software.
Take smart cars as an example. Why does Huawei not build cars? Instead, it focuses on ICT technology to help car companies build good cars? Because automotive incremental parts suppliers have less market influence. Moreover, building cars also requires chips. How can Huawei, which is already short of chips, build cars?
Huawei has taken more than one step on its transformation journey. Smart cars, the Internet, finance, cloud services, Hongmeng system ecosystem, etc. are all areas Huawei is currently focusing on. Moreover, the development of these fields is basically not affected by the actions of the United States. Almost all technology research and development can be completed by Huawei alone.
So can the transformation be successful? The answer is yes. Everything is progressing relatively smoothly at present. Huawei has released dozens of patented technologies in the field of smart cars.
In the financial field, Huawei acquired the Xunlianzhipay payment platform and successfully obtained a payment license, laying the foundation for the future development of financial business.
Huawei Cloud and system ecology are also developing steadily. The strength shown may be just the tip of the iceberg. More leading technology products and future planning areas may not be revealed one by one. These are Huawei's trump cards. When the time comes, when the trump cards are released, they can give their opponents a big blow.
Xu Zhijun made a public statement and determined to launch operations in more market areas. What kind of progress there will be in the future is still unknown, but judging from Huawei's background, it will not fall so easily. The shortcomings in the chip and mobile phone fields can be made up by business transformation.
With the successful transformation of its business, Huawei will become stronger in the future, with a deeper heritage and a more solid foundation. This kind of Huawei is what the Chinese people really want to see. A national light that leads the rise of domestic science and technology to rejuvenation.
What do you think of Huawei’s transformation?