Huawei is improving its strategies for doing business
A few years back, Huawei and Samsung were the biggest competitors. Even the Chinese firm makes it to the top in the sales of smartphones. However, things messed up with the sanctions imposed by the US. These sanctions restrict the business of the smartphone company. It started by banning the sales of smartphones by Huawei in the US. Followed by that the company received limitations in buying the equipment required for its smartphone business.
Just when everyone is expecting Huawei to be done with the business. The Chinese firm has announced that it is back in the game.
Recently, Huawei shared some insights into the growth of its sales and revenue. The company declared that its sales have grown to around 7.2% as of the last year. Alone in the Q4 of 2022, the sales reached CNY 191 billion (around $27.4 billion). In accordance with a report by Bloomberg, the sales by Huawei for 2022 were around CNY 636.9 billion (around $92.3 billion). This is quite an improvement compared to the last year.
This is all the result of the company’s efforts for finding ways that could help with its business. The Chinese firm focused on other options for generating revenue. It put its patents on sale. Additionally, the company sold tech and services to its new customers. The new customers of Huawei comprised miners, industrial parks, and automakers. Furthermore, it charged Apple, Samsung, and other tech firms with patent royalties. Huawei’s global head of IP, Alan Fan, shared that in 2022 Huawei signed more than 20 agreements for patent licenses. These licenses covered IoT, smartphones, connected automobiles, and networking.
Furthermore, Xu mentioned that in 2022, the Chinese firm was successful in pulling itself out of the crisis. He mentioned that US sanctions are the new normal for the company. He added that though the macro-0environment may appear unstable we are sure about the future given digitalization and decarbonization.
Reports predict that the timespan of three years Huawei has worked on research and development. It has been working on alternatives to American tech and components. Even the company declared that it has invented something innovative given the EUV lithography process. If this I so, and the patent by the company succeeds in receiving the patent, it won’t have to rely on Samsung, ASML, and another American tech for developing high-end processors for smartphones (<10nm).
However, things are neither that simple nor certain. Since the EUV lithography machine holds around 100,000 components. Furthermore, the company requires partners for developing sub-10nm chips. Although the company has been making efforts by investing in equipment, packaging, foundry, and testing. Time will show whether Huawei succeeds in its mission or not.
In spite of this, Huawei may not be able to take the GMS (Google Mobile Services) back to its devices. Where people mostly rely on GMS for their daily use. So, this can affect the global adoption of smartphones by Huawei. Well, this is still the situation where Samsung might not worry much. Since the growing concerns regarding data security might work in favor of Samsung. However, the tech firm Samsung should work on improving its tech so it can compete better in the future with any possible challenge.
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