Huawei is intensifying its focus on smartphones powered by its own chips as both its traditional handset business and newer electric vehicle division face mounting pressure in China.
The company released the Mate 90 series on Oct. 1, powered by its LogicFolding chip. Executive Director Richard Yu, who chairs Huawei's consumer business, told reporters the company aims to recapture overseas market share over the next one to three years by expanding HarmonyOS globally and securing domestic chip supply.
U.S. sanctions imposed in 2019 cut Huawei off from Google's Android operating system and TSMC-made semiconductors, demolishing what had been a commanding position. Before the restrictions, Huawei shipped more than 240 million smartphones annually, targeting 300 million units that year. Today it sells only several million outside China annually.
Yu's comments at a media roundtable before the Mate 90 launch marked his first engagement with foreign press since 2019. The consumer business—once Huawei's largest segment—had its revenue halved to approximately $34 billion in 2021 following sanctions. By 2025, it had recovered to about $51 billion, representing 39 percent of total revenue.
The smartphone pivot comes as China's domestic market cools. Counterpoint Research shows double-digit year-on-year smartphone sales declines in August and September within the country.
Huawei's auto division, developed through partnerships with Chinese manufacturers, generated at least $6.7 billion in revenue in 2025, according to the company's annual report. Huawei provides software interfaces and driver-assist systems but does not manufacture vehicles directly. These devices remain concentrated in China, unlike competitors who are rapidly expanding exports.
China's broader auto market is headed for its worst year since 2021, with sales down more than 20 percent through late September, according to the China Passenger Car Association. New energy vehicle sales, which include battery electric and hybrid vehicles, fell 13 percent over the same period. Huawei-powered vehicle deliveries dropped 29 percent year-over-year in September, marking the third consecutive monthly decline, based on figures from the Harmony Intelligent Mobility Alliance, which manages Huawei's auto software platform.
