Huawei doubles down on smartphones as EV sales slow

• Huawei now sells only several million smartphones outside China annually, down from 240 million units shipped globally in 2019, with plans to expand HarmonyOS overseas in 1-3 years
• Huawei-powered vehicles (HIMA) delivered just 37,500 units in September 2026, down 29% year-over-year for the third straight monthly decline, while competitor BYD maintained sales above 400,000 units monthly
• Huawei's consumer business recovered to approximately $51 billion in 2025 after falling to half its previous size in 2021 due to U.S. sanctions impact

Summary: Huawei Doubles Down on Smartphones as EV Sales Slow

Chinese tech giant Huawei is refocusing on smartphones amid declining electric vehicle sales. On October 1, 2026, the company launched its Mate 90 series, the first smartphone using its proprietary chips, signaling renewed global ambitions.

Key Figures and Timeline:

• Huawei previously shipped over 240 million smartphones globally but now sells only several million units outside China annually
• Consumer business revenue reached approximately $51 billion in 2025, recovering from a 50% decline to about half that amount in 2021
• The company aims to expand its HarmonyOS operating system overseas within 1-3 years

Market Challenges:

U.S. sanctions imposed in 2019 blocked Huawei's access to Google's Android and American-made semiconductors, devastating its consumer business. China's smartphone market has weakened significantly, with double-digit year-over-year declines in August and September 2026.

EV Business Struggles:

Huawei's automotive partnerships, operating under the HIMA (Harmony Intelligent Mobility Alliance) brand, face mounting pressure:

• HIMA vehicle deliveries dropped 29% year-over-year in September, marking the third consecutive monthly decline
• September deliveries totaled just 37,500 units, compared to BYD's 400,000+ monthly sales
• HIMA sales fell 14.2% while competitors like Zeekr (+108.2%) and Leapmotor (+78.3%) saw strong growth
• Partner Seres' stock price has declined significantly

The company generated at least $6.7 billion in EV-related revenue in 2025, but growth has stalled. Huawei provides software and driver-assist systems rather than manufacturing vehicles directly, with sales concentrated in China.