World Economy

Huawei Pivots to Smartphones as Electric Vehicle Sales Falter

Huawei is intensifying its smartphone strategy with homegrown chip technology as its electric vehicle partnerships encounter slower sales. The Chinese tech company launched its Mate 90 series on October 1, featuring proprietary LogicFolding chips, marking a significant strategic shift. Executive leadership aims to recapture international market share lost after 2019 trade restrictions. Overseas operations have shrunk to just millions of annual units, down from prior global shipments exceeding 240 million. The company plans to expand its HarmonyOS operating system to foreign markets within one to three years as domestic chip manufacturing improves. Huawei's consumer business generated about $34 billion in revenue in 2021 after sanctions took effect. The renewed focus on smartphones reflects the challenges Huawei faces in diversifying beyond telecommunications equipment into mobility solutions.