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Huawei Consumer Business Group CBG

Company

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Owners:
Huawei
Financial results
2017 year
Revenue: 92.5 billions $
Net Profit: 7.3 billions $
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Owners

Huawei Consumer BG - one of Huawei's three business units - is engaged in the development and production of smartphones, tablets and PCs, cloud services and other consumer products. Huawei's global network is built on nearly 30 years of experience in the telecommunications industry and aims to provide users around the world with the latest technology. Huawei products and services are available in more than 170 countries around the world, with a combined audience of a third of the world's population. The company's 15 R&D centers are located in the United States, Germany, Sweden, Russia, India and China.

The main article and history of the company - Huawei

History and Performance Indicators

2023: Emerging markets share of smartphone supply - 7%

The share of emerging markets in the supply of smartphones of manufacturers.
The chart is based on data from the first quarter of 2018 through the second quarter of 2023.

2019

Shipment of 6.9 million 5G smartphones to consumers

On January 16, 2020 Huawei , Consumer Business Group (CBG) announced a shipment of 6.9 million to consumers - in 5Gsmartphones 2019. Strong sales performance strengthens the company's position in the growing 5G communications market.

In 2019, HUAWEI introduced eight 5G smartphone models to users: HUAWEI Mate 30 Pro 5G, HUAWEI Mate 30 5G, PORSCHE DESIGN HUAWEI Mate 30 RS, HUAWEI Mate 20 X (5G), HUAWEI nova 6 5G, HUAWEI Mate X, Honor V30 Pro and Honor V30. Due to the fact that all models of HUAWEI 5G smartphones support both autonomous (SA) and non-autonomous (NSA) network modes, they have become an obvious choice for users who want to be sure of the relevance of their mobile devices in the foreseeable future. The range of models allows you to choose a device in the right price category for customers with different financial capabilities, making 5G communication available to the widest range of users around the world.

Huawei: US sanctions will deprive us of $10 billion in revenue in the Huawei market

On August 23, 2019, Huawei announced the company's approximate losses in the smartphone market due to US sanctions.

According to Huawei CEO Eric Xu at a press conference on the announcement of new chips, the revenue of the consumer division, based on mobile phones, may decrease by more than $10 billion due to restrictions imposed by the US authorities. Read more here.

2017

  • The company's total annual revenue was RMB603.6 billion (US $92.5 billion at the year-end exchange rate). This was 15.7% higher than the 2016 result. Net income reached 47.5 billion yuan ($7.3 billion), up 28.1% from a year earlier.
  • In 2017, Huawei Consumer Business Group shipped a total of 153 million smartphones (including the Honor brand) and achieved annual revenue of 237.2 billion yuan ($36.4 billion), up 31.9% from a year earlier.
    • Huawei's flagship products are smartphones of the series P Mate and have become hits of the brand, strengthening Huawei's influence in the premium market segment. The total number of shipped smartphones Huawei P10 and Huawei Mate 9 exceeded 20 million units.
    • Huawei nova series and two flagship Honor series (V and digital flagship series) continue to strengthen their positions.

  • Global brand recognition increased from 81% in 2016 to 86% in 2017. Outside of China, recognition increased from 64% to 74%.
  • The number of users considering the option of buying a Huawei device in markets outside China grew by 100% over the year, which allowed the company to enter the top three global vendors for the first time.
  • In Latin America, the Middle East and Africa, sales of Huawei smartphones showed steady growth, winning more than 15% of the market. In key countries in these regions, including the UAE, Saudi Arabia, South Africa, Mexico and Colombia, Huawei has ranked among the Huawei three most popular brands, with the gap with the ranking leaders continuing to narrow.
  • Huawei had more than 45,000 retail stores worldwide in December 2017, up 10% from a year earlier. The company continues to focus on creating a simple, attractive and inspiring experience, emphasizing product quality. Among the achievements of 2017 in this direction, it is worth mentioning the opening of premium stores in Italy, Malaysia, Thailand and many other countries, which brought the total number of outlets of this format around the world to 3,000. Over the year, the increase in their number was 200%.
  • Offline service: As of Q4 2017, Huawei's consumer division had more than 1,400 service centers in 105 countries and regions, including about 800 branded service stores. Branded stores offer a list of basic repair services. Users can come there in person, call the master at home or send their device by mail. Additional services such as screen insurance, extended warranty and trade-in are also available in branded stores.
  • Online service: online customer service is now available in 111 countries and regions in 65 languages. Users can contact support via the telephone hotline, the Internet, social networks, e-mail and various self-service modules, which allows them to choose the most convenient, fast and effective way of interaction.
  • In 2017 processor Kirin , 970 was presented, which received a dedicated Neural Network Processing Unit. The HUAWEI Mate 10 series smartphones are built on these processors.
  • Huawei tablet shipments showed a 40% increase from 2016, despite the overall weakening of the market. The second generation of MateBook tablets has been released.

2016

Forecast: Group earnings are expected to grow for the 5th consecutive year to 178 billion yuan, up 42% from 2015. In 2016, the company shipped 139 million smartphones to consumers, 29% higher than in 2015, while, according to IDC, the global smartphone market grew by only 0.6% in 2016, which indicates the company's outstripping growth rate. [1]

In 2016, Huawei CBG focused on promoting meaningful innovation and made technological breakthroughs in the field of operating systems, significantly improving the Android-based EMUI interface, improved dual camera and artificial intelligence technologies and advanced in a number of other areas.

For many years, Android device users OS have been worried about losing performance over time. To address this issue, a world-class development team ON has done deep optimization. As operating system a result, Huawei introduced EMUI 5.0, a deeply integrated interface with the Kirin chipset that contains 20 patented technologies and allows you to get the most out of Huawei's combination of software and hardware. Highly optimized resource allocation controlled by a self-learning system and additional optimization of Android system applications implemented in the new interface completely solve the problem of loss of performance during long-term operation.

Together with Leica in 2016, Huawei developed two generations of dual cameras, becoming the leader in the trend in mobile photography and setting a benchmark for the quality of mobile shooting, which increased the popularity of the Huawei P9 and Mate 9 models. In September 2016, Huawei, together with Leica, announced the opening of the Max Berek Innovation Laboratory. In the future, this laboratory will conduct joint research in the field of optical systems, image processing algorithms, virtual and augmented reality.

In the field of artificial intelligence, Huawei concentrates efforts on intellectual perception, cognitive and computational intelligence, and has already created an artificial intelligence system based on a bundle of software, mobile device resources and cloud service. Equally important technological breakthroughs were made by the company in such areas as sensor algorithms, computer vision, search engines, semantic analysis, as well as the already presented situational intelligence, capable of offering users suitable services in various scenarios. Huawei has also launched a desktop search function that allows you to get more results in a shorter period of time and with higher accuracy.

Smartphones P9 and P9 Plus became the first flagship model of Huawei, sales of which exceeded 10 million units.

At the same time, Huawei's cloud ecosystem is already taking shape in China, offering developers global business opportunities and creating an open and transparent ecosystem of applications. Huawei CBG cloud services are used by more than 200 million mobile users and more than 220,000 registered developers. Total partner remuneration in 2016 exceeded 2.8 billion yuan.

Developing a line of premium smartphones in 2016, Huawei simultaneously invested in the creation of global marketing channels and service infrastructure.

In particular, Huawei has built 5 global service centers for pre-sales and after-sales services, which are responsible for support through the hotline of users from 105 countries. More than 460 service centers were established in 45 countries. As a result, according to an IPSOS study, Huawei came out on top in terms of user satisfaction with service centers in China, Poland, Mexico, Egypt and many other countries.

Huawei's device lifecycle support system has also been optimized, cloud services help in pre-sales and after-sales customer service. This allowed the company to provide users around the world with secure and high-quality service applications. Currently, Huawei's app store has allowed users to install more than 45 million apps and has industry-leading security with a 4-tier security mechanism that includes developer verification, application system testing, human control, and a user feedback system. In 2016, the system processed more than 240,000 suspicious apps. Huawei is working to move cloud services beyond China as well. More recently, Huawei has successfully launched an online store of lock screen themes and covers in 170 countries around the world. This has contributed to the diversification of overseas businesses and the global expansion of Huawei's core cloud services.

In 2016, Huawei significantly increased the capacity of open market channels, thanks to which its share increased to 71%, by 13% compared to 2015. Huawei's global retail network now includes more than Huawei stores. Long-term partnerships have been established with hundreds of distributors and retailers worldwide.

Embodying the brand's development strategy in 2016, Huawei has been directing efforts to deliver world-class global marketing programs in a variety of areas, including design, fashion, entertainment, sports and other areas that are emotionally attractive to the brand's target audience. World famous footballer Lionel Messi has become an ambassador for Huawei, and Hollywood stars Henry Cavill and Scarlett Johanson are the faces of the P9 flagship's advertising campaign. In addition, Huawei cooperates with the international premium fashion platform VOGUE and other fashion week events.

In 2016, the brand re-entered the Top 100 Global Brands list, published by Interbrand, and took 72nd place in it. In addition, the brand took 50th place in the BrandZ Top 100 rating.

According to data published by GFK in October 2016, Huawei's share in the global global smartphone market increased to 11.3% [2].

GFK data suggests that Huawei currently holds more than 15% of the market in 33 countries and more than 20% in 18 countries, half of which are European. In the Northeast and West To Europe , Huawei's share exceeds 15 and 10%, respectively. In particular, in a number of northern European countries, Huawei holds a dominant position, and in the United Kingdom,, and in France Germany a number of other key markets, it shows significant growth.

The market share of Huawei in China for the first time exceeded 20% in November 2016, for the most part due to the premium segment of smartphones in the price range of 500-600. In dollars Africa, Latin America, and the Middle East, Huawei managed to gain about 15% 3 of the market.3

In addition to the production of smartphones, in 2016 the company proactively developed in such segments as PCs and tablets, wearables, smart home equipment and Internet vehicles (IoV). Many innovative products, including the MateBook convertible laptop, have also received positive consumer reviews. Despite many negative factors, Huawei had a significant increase in the tablet business in 2016, showing especially good results in both B2B and B2C. The total number of tablets shipped exceeded 10 million units, which is 90% more than in the previous year.

HiLink-based smart home ecoplatform has been adapted by leading manufacturers of traditional home appliances, including Haier and Gree. By creating innovations for the automotive industry, Huawei has attracted international tier-one brands, including Audi and Volkswagen, as partners.

2014

Huawei's Consumer Business Group (CBG), which is responsible for developing and selling mobile devices, accounted for 26% of Huawei's sales in 2014. The volume of this business increased by 33% to 75.1 billion yuan ($12.1 billion), which is more due to emerging markets, including Latin America.

In 2014, Huawei shipments increased by 7.8% and amounted to 138 million devices (including 75 million smartphones). Annual growth was 45%.

In 2014, Huawei delivered a total of about 75 million smartphones, increasing the result of a year ago by 40%. In 2015, the company plans to increase the volume of shipments to 100 million devices, where approximately 30% of the devices will be in the price category from 2000 yuan ($320). In 2014, the share of such tubes was 18%.

The corporate division of Huawei Enterprise Business Group ended 2014 with 27.3 percent revenue growth, which reached 19.4 billion yuan (about $3 billion). Huawei has also established strategic partnerships with a number of enterprises, including SAP and Accenture, for joint research and development in Big Data and cloud computing.

Notes

  1. According to IDC's forecast, global smartphone sales will grow by only 0.6% in 2016.
  2. of GFK, October 2016