Huawei’s consumer business is shifting focus to smartphones featuring its proprietary "LogicFolding" chip, exemplified by the Mate 90 series launched on Oct. 1. Executive Director Richard Yu stated the company aims to recover overseas market share after U.S. restrictions in 2019 reduced international shipments from over 240 million units to several million annually. The consumer segment, which halved to $34 billion in 2021 following sanctions, has rebounded to approximately $51 billion in 2025, accounting for 39% of total revenue. This strategic pivot occurs amid a double-digit year-on-year decline in China’s smartphone market during August and September, according to Counterpoint Research.
Simultaneously, Huawei’s automotive sector faces headwinds despite generating at least $6.7 billion in revenue in 2025. Deliveries for vehicles powered by Huawei’s Harmony Intelligent Mobility Alliance (HIMA) dropped 29% year-on-year in September, marking the third consecutive monthly decline. In contrast, competitors like BYD maintained sales above 400,000 units per month, while Leapmotor exceeded 100,000 deliveries. HIMA delivered just under 37,500 vehicles in September, reflecting partnerships with manufacturers such as Chery and Seres. While Seres Group shares fell more than 60% this year, Huawei announced a five-year cooperation extension with Seres on Oct. 1, including the joint establishment of an Aito business team.
The reallocation of resources toward smartphones signals Huawei’s attempt to stabilize its largest revenue stream against volatile automotive demand. By leveraging domestic chip manufacturing to bypass previous supply chain constraints, the company seeks to rebuild global credibility and market share. However, the reliance on homegrown technology limits immediate international expansion, as Yu noted that overseas sales of self-developed devices depend on future improvements in China’s chip manufacturing capacity. This creates a temporal gap where domestic saturation and regulatory barriers constrain growth, forcing Huawei to defend its core mobile business while navigating a shrinking addressable market in China.
The divergence between Huawei’s declining auto deliveries and the robust performance of rivals like BYD highlights structural challenges in its software-centric automotive model. Unlike competitors who control hardware production, Huawei’s emphasis on providing interfaces and driver-assist systems exposes it to partner-specific risks, evidenced by Seres Group’s significant stock decline. The continued partnership with Seres suggests Huawei is prioritizing ecosystem stability over rapid scale in the EV sector. Market observers will watch whether the extended cooperation yields improved delivery metrics or if the automotive unit remains a secondary contributor compared to the recovering consumer electronics division.
