"Huawei infighting ..."

"Yu Chengdong is going to class ..."

"Yu Chengdong to millet ..."

I don't know how many title parties Huawei has supported in the debate over whether to build a car these days.

To say that Huawei is really strong, a car has not been built, which makes the public opinion in the new energy automobile industry jump.

Today, we don't engage in conspiracy theories or speculate. Let's talk about whether Huawei will make a car or not.

0 1

What is the reason why Yu Chengdong wants to build a car?

In fact, the core issue of the debate about Huawei's automobile business in this period is one: Will Huawei build a car?

Yu Chengdong is undoubtedly a "car maker".

There is a simple reason. The peak sales of Huawei's consumer business in 2020 was 482.9 billion yuan, contributing 54.2% of Huawei's turnover.

Due to force majeure, it plummeted to 214.5 billion yuan in 2022.

There is a saying that "Huawei can die, but it can't die like this."

If the consumer business led by Yu Chengdong is wrong and rejected by the company, he may not say anything, but Huawei's smart phone is at the peak of becoming the world's number one, and suddenly it is precisely hit by the United States, and no one wants to let anyone see it.

Since the new energy vehicle is the next gold mine, we must seize it and create greater glories.

In 2022, Huawei's intelligent product selection model led by Yu Chengdong achieved quite good results. In less than a year, the sales volume of such a brand has increased from scratch to more than 70,000 vehicles, which also makes Yu Chengdong full of confidence in the field of automobile manufacturing.

From the perspective of the whole industry, Yu Chengdong also has good reasons for Huawei to build cars.

The new energy vehicle market is booming, and it has become an inevitable trend to replace pure fuel vehicles, which is a super-large market far exceeding the smart phones of that year.

A few years ago, Huawei successfully established a high-end image in the smart phone market, which suddenly swept the world. The main reason is to take advantage of Huawei's appeal in the high-end market.

Now, Huawei's mobile phone business is sluggish. If you don't build a car, the high-end image you have worked so hard to create will gradually be forgotten by people. It seems a pity to abandon such a high-quality intangible asset without a fight.

Building new energy vehicles is actually in line with the national policy of supporting the development of new energy vehicles; At home, Huawei can open up another gold mine and get out of the predicament as soon as possible; Next, you can ask Yu Chengdong to show his ambition, and grow an evil spirit of being beaten for no reason.

From any point of view, there is nothing wrong with the idea of building a car.

But this idea was rejected by Huawei.

This veto is not general in nature, but the announcement of "Resolution on Huawei Not Making Cars" was directly issued by Ren, and it is valid for at least 5 years.

According to Huawei's strong style, this announcement shows that the debate within Huawei about whether to build a car will stop in the summer.

The problem now is that there are consumers waiting outside, and there are more than enough people in the company to plead for help many times, even without hesitation. Why is Huawei so determined to build a car?

02

Huawei has a good reason not to build a car.

There is a saying that you know yourself best.

Although attacked by some forces, whether it is built or not can set off a frenzy of public opinion. This energy of Huawei is catching up with the current global sales champion BYD.

However, Huawei's current difficulties may be more difficult than the outside world thinks.

In 2022, Huawei's turnover reached 642.3 billion yuan and its net profit reached 35.6 billion yuan.

It seems that this number is quite amazing.

You know, BYD, the global champion of new energy vehicle sales, has a revenue of 42,465,438+billion yuan in 2022 and a net profit of 166 billion yuan, which is not an order of magnitude with Huawei after the "decline".

However, Huawei's net profit plummeted 69% year-on-year, hitting a new low since 20 18.

It is worth mentioning that Huawei is not a listed company, and its subsequent development must rely on internal growth.

Profits plummeted by nearly 70%, which is why Ren has been talking about "coldness".

In addition, Huawei is increasing its investment in R&D. In 2022, R&D investment reached 1, 61.50 billion yuan, accounting for 25. 1% of the total annual income.

On this basis, excluding normal operating costs and other costs, Huawei can actually use little money for expansion.

So, suppose Huawei makes cars now, what will happen?

It may increase tens of billions of expenses every year, greatly increasing the management difficulty and cost of the company, and falling into various public opinion disputes, making itself a target of public criticism.

For Huawei now, it is not a good thing to live in the spotlight all the time.

So can these costs be recovered?

The uncertainty is relatively large!

At present, there are two giants in the new energy automobile industry, BYD and Tesla, which are extremely difficult to shake in the short term.

In the field of vehicle manufacturing, Huawei is currently inexperienced. Even if we can solve various technical problems through hard research, it is almost impossible to achieve profitability within three to five years.

More importantly, there is still a force on the east coast of the Pacific Ocean always staring at Huawei.

If nothing else, smart chips are now the core components of cars. If Huawei really built the whole vehicle, but it was attacked, then the tens of billions of dollars invested before may be lost.

In fact, Huawei's decision not to build a car has curbed Yu Chengdong's impulse to continue expanding at the C-end, because Huawei cannot afford unprofitable long-term investment for several years.

Ren said that within Huawei, only Hisilicon, headed by He Tingbo, has no profit target.

Obviously, Huawei will not set foot in the new energy vehicle market, but it prefers B-side business with higher profits, faster results and less trouble.

03

What can Huawei gain from returning to the B-side?

In recent years, Huawei has caused a sensation in the consumer market with its smart phones. Many people started to understand Huawei from their mobile phones.

But in fact, the soul of Huawei lies in the B-side.

For the C-end business, Ren has long expressed the view that "the mobile phone business makes money to raise Hayes".

In Huawei's view, C-side business is used to support the development of other businesses, not Huawei's "main channel". If it is adjusted, it's no big deal.

Now Huawei wants to slim down, emphasize profitability and ensure long-term survival. Then, Yu Chengdong's plan of "burning money first and then making profits" has become Huawei's negative assets, which must be destroyed.

What's more, in Huawei's view, Huawei's automobile business can be maintained even if it doesn't build a car.

In fact, new energy vehicles are just a carrier of "new energy".

On April 1 day, not only Yu Chengdong, but also Hou Jinlong, president of Huawei Digital Energy Technology Co., Ltd. attended the famous "Committee of 100 Automobiles".

Hou Jinlong said that Huawei will release a brand-new integrated extended-range integrated electric drive system, a second-generation high-voltage platform power domain solution, and the world's first optical storage integrated overcharge system architecture at the Shanghai Auto Show.

Since electric vehicles are an inevitable trend, if Huawei can make the core components well, it is also a market with great potential.

Since you want to make money, what is the difference between making money at the B end and making money at the C end?

Concluding remarks

It's too early to tell whether Huawei is too small or Yu Chengdong is too radical. But one thing is certain, Huawei will have a place in the future new energy automobile industry, but it is not the face that people are familiar with now.

This article comes from a promise author. Journey to the west, and the copyright belongs to the author. Please contact the author for any form of reprint. The content only represents the author's point of view and has nothing to do with the car reform.