Securities Daily cited industry sources that Huawei may consider a partial split of the consumer business (CBG), may reduce the investment in the cell phone terminal business, may transfer some cell phone terminal business R & D team to glory, in order to cope with the pressure of chip restrictions.
In response to rumours of selling the cell phone business, Huawei told Sina Technology that this is false news, Huawei will still increase investment in the cell phone business, adhere to the construction of high-end brands, and said it will release the latest flagship phone this month.
Due to the chip restrictions, Huawei’s consumer business revenue scale has shrunk significantly. But Huawei did not give up on this area, but renamed it the terminal business, and began a full-scale march to the commercial terminal market.
In the past year, Huawei launched a number of commercial notebooks, desktops, monitors, tablets and other products, and Harmony and Ola two operating systems as the core, to create a dual ecology of hardware and software.
Some experts believe that if Huawei divests its consumer business, it will affect its layout in areas such as health, display, metaverse, and the development of Harmony and Ola systems. At the same time, Huawei also has plans to enter the game and digital currency industries, which also need the consumer business as a foundation. Therefore, the cost of spinning off the consumer business is too great.
Other experts point out that spinning off part of the restricted business can reduce risk and increase cash flow. in November 2020, Huawei sold its brand Honor assets and achieved good results. For Huawei, while retaining its core business, it should also strive to break through the challenges in chip process technology and collaborate with the domestic semiconductor industry chain.
