● Covered by 1 source · 1 reportMedium impact1 neutral
Huawei Shifts Focus to Smartphones with Homegrown Chips Amid Market Slowdown
Key points
- Huawei launched Mate 90 series with its "LogicFolding" chip.
- Company aims to recover overseas smartphone market share.
- U.S. restrictions in 2019 impacted Huawei's consumer business.
- Huawei's EV business revenue reached $6.7 billion in 2025.
New Smartphone Launch with Proprietary Chip
Huawei launched its Mate 90 series smartphone on October 1, featuring its self-developed "LogicFolding" chip. This release marks a strategic shift for the company, which is now prioritizing its smartphone division.
The launch event was significant as it was the first time Huawei Executive Director Richard Yu spoke with foreign press since 2019, indicating a push to re-engage with international markets.
Impact of U.S. Restrictions and Market Share Goals
U.S. restrictions in 2019 significantly impacted Huawei, blocking access to Google's Android and TSMC-made semiconductors. This led to a substantial drop in its consumer business revenue, which halved to approximately $34 billion in 2021 from the previous year.
Huawei aims to recover its overseas market share, which currently accounts for only several million smartphone sales annually. The company plans to expand its HarmonyOS operating system to overseas markets within the next one to three years, hoping that China's chip manufacturing capacity will support future international sales of devices with self-developed chips.
Consumer Business Recovery and Revenue
Despite the earlier decline, Huawei's consumer business has shown recovery, growing to around $51 billion in 2025, representing 39% of its total revenue. This growth occurs despite a slump in China's overall smartphone sales, which saw double-digit declines in August and September year-on-year.
Electric Vehicle Market Context
Huawei also has a presence in the electric vehicle (EV) market, collaborating with Chinese manufacturers to provide software interfaces and driver-assist systems. This business unit generated at least $6.7 billion in revenue in 2025.
However, Huawei-powered vehicles are primarily concentrated in China, unlike other Chinese EV brands experiencing rapid export growth. The Chinese auto market itself is facing a downturn, with sales down over 20% in the first three quarters of the year.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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Reporting from
Huawei released its Mate 90 series smartphone featuring its own "LogicFolding" chip, signaling a renewed focus on its smartphone business. This move comes as both the smartphone and electric vehicle markets face slowdowns, and Huawei aims to regain overseas market share lost due to U.S. restrictions.