After a long period of confusion, many media reported that Huawei will sell the Honor brand. This move will help to continue the survival of the Honor brand. Baiming Technology believes that the more important factor for Huawei is to prepare enough cotton tires for the winter.
Huawei has a number of businesses, but its main business segments are operator business and consumer business. Due to well-known reasons, Huawei’s carrier business in charge of the communications equipment business has been facing difficulties since this year, and has suffered successive setbacks in the European market. According to statistics, it has only increased an order for 5G equipment since February this year. The orders of Ericsson and Nokia continue to grow, the latter two have more than 100 orders for 5G equipment, and the number of 5G orders has surpassed Huawei.
The consumer business, which is responsible for the smartphone business, is Huawei’s largest source of revenue. Last year, due to the influence of the United States, Huawei turned its mobile phone business back to the domestic market and maintained business stability, but by the third quarter of this year, Huawei’s mobile phone shipments The year-on-year drop of 22.0% shows that the smartphone business is also facing difficulties.
While the two major businesses are under pressure, in order to ensure the normal operation of the business, Huawei has to store a lot of chips, which takes up a lot of its funds. On the one hand, business is under pressure, which leads to limited income. On the other hand, expenditures are greatly increased. The increase and decrease naturally make it bear a certain amount of capital pressure, which forces it to prepare early to meet the more difficult moments and sell some businesses in this way Increasing capital reserves has become a choice. Media reports indicate that the sale of the Honor brand is expected to bring it hundreds of billions of income. This is a rare cotton tire in the cold winter.
In fact, Huawei has sold non-core businesses many times in history. For example, it sold Huawei Electric in the early stage and sold its submarine optical cable business last year. Its founder Ren Zhengfei is also always worried about the possibility of facing a winter. Facing the most difficult moment, Huawei’s two important businesses are now facing obstacles, which is undoubtedly the difficult time.
The sale of the Honor brand by Huawei this time can bring Huawei hundreds of billions of revenue and enhance its ability to resist risks. In addition, the Honor brand will also take away some employees, which also reduces the labor cost pressure Huawei faces. It can be said to be sold. The Honor brand can alleviate Huawei's burden in many ways, making it easier to meet challenges.
It is also a suitable choice for Huawei to sell the Honor brand. Since it cannot solve the foundry problem of Huawei HiSilicon chips, it is also difficult to purchase chips. It seems difficult to maintain the operation of the Huawei brand and the Honor brand at the same time with the existing chip inventory. In this way, ensuring the development of the core Huawei brand becomes the best choice. The continued existence of the Huawei brand in the smartphone market can preserve the fire for its future rise.
In history, Huawei has been able to survive difficult times many times, showing its strong resilience and vitality. Boming Technology believes that it can also survive this time and finally achieve Phoenix Nirvana and usher in a more brilliant tomorrow. Maybe by then it will win back glory again.
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