huawei's rotating chairman xu zhijun said: "the overall operating performance of the group is in line with expectations. we will implement the company's strategy of 'high quality' throughout the entire process, continue to optimize the industry portfolio, enhance development resilience, build a prosperous industry ecosystem, and contribute more competitive products and solutions to customers."

mobile phone sales regained the top spot in china, and consumer electronics business fully recovered

in the first half of 2024, huawei's consumer electronics business sounded the horn of recovery. according to idc data, in the first half of 2024, huawei once again became the number one in china's smartphone market with a market share of 17.5%. the growth rate of mobile phone shipments in the first and second quarters was 110% and 50.2% respectively, leading the industry. although external restrictions continue to tighten, huawei's supply capacity continues to improve, and the gap with apple in the market above rmb 4,000 continues to narrow.

why has huawei's mobile phone sales soared? wang peng, an associate researcher at the beijing academy of social sciences, said in an interview with the securities times: "huawei's r&d strength is its core advantage, especially in the innovation of communication technologies such as 5g, camera technology and artificial intelligence technology, which makes huawei's mobile phones lead the industry in performance, photography and smart experience."

kaiyuan securities research report stated that with huawei's breakthrough in related technologies, the launch of the mate 60, pura 70 series and mate x5 folding screen series has brought huawei back to the domestic high-end mobile phone market. at present, the mate 60 and pura 70 series are still popular, and domestic high-end mobile phones have returned to their peak sales.

in the second quarter of 2024, huawei released the pura 70 series, covering a price range of 5,499 yuan/unit to 10,999 yuan/unit. techinsights said that in the second quarter, the proportion of pura and mate series in huawei's total shipments increased significantly year-on-year, helping to increase the average selling price of huawei mobile phones.

according to techinsights, huawei's mobile phone wholesale average selling price (asp) and wholesale revenue both hit record highs in the second quarter of 2024, mainly due to the large proportion of high-end models (mate, pura series and folding screen series). the chinese market remains huawei's core market, accounting for 89% of its global smartphone shipments.

at the same time, the hot sales of foldable screen mobile phones also helped huawei's average mobile phone revenue reach a new high. data shows that in the second quarter of 2024, the sales of huawei's book-shaped mate x series and clamshell pocket series increased by 400% and 50% year-on-year respectively.

thanks to the hot sales of mobile phones, the market share of hongmeng operating system in china increased to 17.2% in the first half of 2024, a year-on-year increase of 66.7%, surpassing ios and second only to android.in june 2024, at the huawei developer conference 2024, harmony os next (also known as hongmeng galaxy edition) launched a beta version for developers. this is also known as "pure-blooded hongmeng". it is based on the hongmeng kernel and is no longer compatible with app applications developed by android. the top 5,000 mobile applications have all started hongmeng native application development.

"by building its own application ecosystem, huawei can better control the user experience and provide users with more personalized and intelligent services. the construction of the harmony ecosystem will also help enhance huawei's competitiveness in the global market and provide support for it to gain more share in the global high-end mobile phone market." zhan junhao, founder of fujian huace brand positioning consulting, said in an interview with a securities times reporter.

in addition to mobile phones, other products in huawei's consumer electronics business also achieved strong growth.in the first half of 2024, huawei's tablet shipments increased by 77% year-on-year to 4.2 million units, accounting for 28% of the market share; pc shipments increased by 15% year-on-year to 2.1 million units, accounting for 12% of the market share; smart wearable shipments increased by 66.2% year-on-year to 7.3 million units, accounting for 3.7% of the market share.

the automotive business has achieved profitability and has established close partnerships with a number of automakers

in terms of automobile business, in the first half of this year, the sales volume of hongmeng zhixing was about 194,200 vehicles, among which the wenjie brand performed the best, accounting for more than 90% of the total sales.

according to richard yu, huawei's executive director, chairman of the device bg, and chairman of the intelligent automotive solutions bu, the company has delivered more than 400,000 vehicles in the past two years, creating a new era for the growth of smart luxury car brands.among them, the delivery of the new m5 exceeded 20,000 units, the cumulative order of the new m7 exceeded 240,000 units, and the cumulative delivery of the m9 exceeded 120,000 units. in addition, zhijie and xiangjie were also favored by the market. the order of xiangjie s9 exceeded 8,000 units in 20 days after its launch.

in addition, huawei's automotive business unit achieved profitability for the first time in the first half of the year.shenzhen yinwang intelligent technology co., ltd. (formerly huawei automotive bu, hereinafter referred to as "yinwang company")financial statements for 2022 and 2023 and simulated financial statements for the first half of 2024,yinwang companythe net profit attributable to the parent company from 2022 to the first half of 2024 was -7.587 billion yuan, -5.597 billion yuan and 2.231 billion yuan respectively. the estimated net profit attributable to the parent company in 2024 is 3.351 billion yuan.

at present, many automobile companies have deeply "joined hands" with huawei through equity cooperation and invested in yinwang company.on august 25, seres issued an announcement stating that its wholly-owned subsidiary, seres automotive co., ltd., intends to purchase huawei’s 10% stake in yinwang company in cash for a transaction price of 11.5 billion yuan.

on august 19, changan automobile issued an announcement stating that the company's joint venture avita technology (chongqing) co., ltd. (hereinafter referred to as "avita technology") intends to sign a "share transfer agreement" with huawei in chongqing on the morning of august 20, stipulating that avita technology will purchase 10% of the equity of yinwang company held by huawei, and the transaction amount is rmb 11.5 billion.

yu fenghui, a researcher at the china financial think tank, said in an interview with the securities times that compared with simple business cooperation, equity cooperation means a deeper strategic bond and more consistent interests between the two parties. this model helps to enhance trust between partners, promote technology sharing and optimal resource allocation, and is conducive to jointly facing market competition and risks.

"with the independent development of huawei's automotive bu and the success stories it has brought, more automakers may consider strengthening their competitiveness through similar cooperation models. huawei's automotive business will also gain stronger industrial support as a result," said yu fenghui.

editor: ye shuyun

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