As early as the end of February, there was news that Huawei's mobile phone backlogd a lot of inventory, much more than expected, and Huawei is currently internally discussing how to properly solve the problem of mobile phone inventory. More news pointed out that affected by the epidemic, the entire smartphone industry has accumulated no less than 50 million mobile phone stocks, and Huawei occupies 20 million.
In response to this statement, on April 9, according to Huawei Yu Chengdong, in an interview with the media, "Some companies have rumors that we have stocks, which is bullshit. They rumors online, and even some Huawei leaders think we have stocks." Yu Chengdong also said During the epidemic, he was urged to deliver goods every day, and even retail stores were unable to deliver goods, including the P40 series, which was also seriously out of stock.
Although Huawei mobile phones are building high-end brands and the prices are relatively high, the cost is also very high. For example, he said that the cost of a single camera part of the P40 series is more than 100 US dollars, so the gross profit of sales is very low compared with Apple Samsung, and it still maintains an advantage in cost performance.
According to its introduction, Huawei's P40 has been spreading overseas, and this phone has no Google stuff at all. "Previously, the P40Lite equipped with HMS overseas was also sold well."
From the perspective of Yu Chengdong, I believe that the second half of the year will also be very good, and I have the confidence to maintain growth throughout the year. However, Yu Chengdong also said that the United States is still further sanctioning fabs, and if the market does not deteriorate further, consumer business will maintain good growth. It also emphasized that the overseas epidemic situation is continuing and has been affected by this decline, but the overall first quarter revenue increased slightly year-on-year. In particular, the domestic market has fully recovered in early March.
Regarding the supply chain's sanctions from the United States, it also stated that Huawei's mobile phones now contain not only domestically produced devices, but also devices from Japan, South Korea, and the United States, but we can not use American devices because we have completely replaced them. Keeping a small number of devices is also a partnership with American companies to help them create value.
He also revealed that even the folding screen mobile phone MateXs released in February this year, even if it sells for 16,999 yuan, it is still a loss. As of now, it has lost 60-70 million US dollars. "After the cost of the folding screen is reduced, it is possible to make a profit, not just the selling price." He said.
Yu Chengdong said that Huawei was a novice in the consumer business area 8 or 9 years ago, but has now achieved good results. At the Huawei P40 series press conference, Yu Chengdong said that Huawei ’s consumer business revenue has grown 200-fold in the past 8 years.
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"If it were not a trade war, we would be the world's number one mobile phone manufacturer. Even so, we are also the number two mobile phone manufacturer in the world." Yu Chengdong said, "Now that sanctions have affected the epidemic, our mobile phone sales have an impact. , But we did not decline in the first quarter, and it has increased slightly. "
However, regarding the impact of the epidemic, Huawei previously stated that it is ready to deal with the financial impact of the new corona virus outbreak. The company has accelerated the pace of developing self-developed technology by increasing R & D expenditure.
In an interview with the Wall Street Journal, Huawei founder Ren Zhengfei said that the new crown epidemic forced the company to reduce its financial goals for 2020, and the extent of this decline may not be clear until the end of the first quarter of 2020. He said that the decline in overseas smartphone sales was offset by strong domestic sales.
