100 billion, Huawei has set another new goal; It has been officially announced that domestically produced 5G RF chips have arrived! Advanced Institute Technology is actually its supplier

1. 100 billion, Huawei has set another new goal

On January 13th, it is well known that due to the many leading industries in 5G, the West has specifically targeted Huawei through four new supply regulations. This not only restricts Huawei's overseas 5G orders, but also controls the manufacturing and supply of high-end chips, such as TSMC, Samsung, SMIC, Qualcomm, MediaTek, Sony, etc., in order to completely restrict Huawei's access to advanced technology, equipment, and products. As a result, a relatively awkward situation has emerged, such as Huawei P50 series being restricted from 5G functions, smartphone business falling from the second place in the world to the sixth place in the world due to chip shortages, and 5G orders being taken away by Nokia Ericsson.

2、 100 billion, 300000 units, Huawei has set another new goal

The significant decline in revenue is the best proof. Recently, Huawei announced that its annual revenue was only 634 billion yuan, which is a significant decrease of over 250 billion yuan compared to 2020. Faced with the new regulations that have no bottom line in the West, Huawei can only support more than 200000 employees by producing more food. It should be noted that salary expenses alone have reached over 140 billion yuan. Therefore, we have also seen that after stabilizing the situation, Ren Zhengfei has clarified Huawei's next direction of development, which is to transform into the software field.

Huawei's transformation into the software field currently has three main directions. The first is the HarmonyOS Ora system, the second is smart car solutions, and the third is smart home solutions. Nowadays, HarmonyOS Euler System has invested tens of billions of yuan and surpassed 320 million users; The smart home solution has also received support from companies such as Midea, Gree, and numerous real estate giants; As for the field of smart cars, there is also good news. Recently, Huawei has set a new goal. On January 12th, Yu Chengdong clearly stated in an interview that Huawei's sales target for its smart car business this year is 300000 units, with a sales scale of 100 billion yuan.

3、 Why does Huawei have to sell cars? Why achieve sales of 300000 units?

As a newcomer to the automotive market, why does Huawei insist on selling cars? The author believes that there are two main reasons. First, we can avoid the restrictions of the new Western regulations. We should understand that under the new Western regulations, Huawei's smart phones, 5G, etc. will be greatly affected before domestic semiconductors have broken through the 7nm process. After Huawei's transformation of its smart car business, it will enter the global automotive supply chain as a supplier. No matter Hongmeng cockpit system, laser radar, car chips, auto drive system, etc., are not among the restrictions of the new Western regulations.

Secondly, it can create new revenue growth points for Huawei. With Huawei's sales channels for smartphones, it is not difficult to achieve a sales target of 300000 units. The recently launched Huawei Wanjie M5 sold over 10000 units in just one week, creating at least 2.5 billion yuan in cash flow for Huawei. It should be noted that there are dozens of car manufacturers that have reached cooperation agreements with Huawei, such as BYD, Changan, BAIC, Volvo, Mercedes Benz, and others that we are very familiar with. In addition, Huawei's cooperation model with Volkswagen is also under negotiation. In the future, with the increase in popularity, Huawei's automotive industry has huge growth potential.

4、 What impact does annual sales of 100 billion yuan have on Huawei and the global market?

What impact will Huawei's intelligent cars have on Huawei and the global market with an annual sales volume of 100 billion this year? The author believes that there are three main aspects. Firstly, for Huawei, in the next few years, it can create a large amount of cash flow and net profit. According to industry experts' estimates, for every smart car sold, Huawei can generate at least 10000 yuan in profit. It should be noted that this profit is almost pure profit, calculated at 300000 units, which is 3 billion yuan, comparable to the profit created by the smartphone business.

Second, Huawei software can break the western monopoly in the future and have a certain say in the market. Huawei Hicar system, Hongmeng cockpit system, auto drive system, etc. are all derived from Hongmeng system. If Huawei can gain a firm foothold in the smart car market, it will at least break the system monopoly of Apple and Google; Thirdly, we need to change the pattern of the global smart car market. As the most well-known smart car brand in the world, Tesla's sales volume last year was only about 930000 units. If Huawei can achieve its goal of 300000 units, Tesla will definitely be the first to bear the brunt, especially in our domestic market.

2. It has been officially announced that domestically produced 5G RF chips have arrived! Will Huawei Mate50 and others fully support 5G?

In the field of 5G, Huawei has the most advanced technology because it has the world's largest number of 5G patents and was the first to launch a 5G dual-mode chip. The 5nm 5G SoC was also launched by Huawei first.

So Huawei's 5G phones are very popular worldwide, first surpassing Apple to become the most popular high-end phone in China, and then surpassing Samsung to become the world's best-selling 5G phone brand.

But no one expected that the chip rules would be modified multiple times, causing chip companies such as TSMC, Qualcomm, and Broadcom to be unable to freely ship, which has had an impact on Huawei's 5G mobile phone and other businesses.