Huawei Focuses on Smartphone Market Amid Slowing EV Sales
Chinese tech giant Huawei is refocusing its consumer business strategy by prioritizing smartphones, aiming to regain lost market share through homegrown technology. The company launched the Mate 90 series during a public holiday in October 2026 and expressed ambitions for global expansion with self-developed chips and HarmonyOS operating system. This shift comes as Huawei's electric vehicle (EV) partnerships face declining sales amid a broader slowdown in China’s auto market. Huawei has seen its smartphone shipments drop significantly since U.S. sanctions began in 2019, which limited access to Google Android and TSMC semiconductors. Despite recent growth in consumer revenue from $34 billion in 2021 to around $51 billion by 2025, the company still lags behind its pre-sanction levels. Meanwhile, Huawei's EV business has struggled with a sharp decline in deliveries for three consecutive months and faces competition from leaders like BYD. The decision underscores Huawei’s strategic pivot back toward smartphones as it seeks to leverage domestic chip manufacturing capabilities while navigating challenges in both the smartphone and automotive sectors.
Topics: Homegrown Tech Huawei Market Share Recovery Smartphones