Huawei takes its first steps in the commercial sector – Pandaily

Chinese tech giant Huawei announced on Wednesday that it will rebrand its “consumer business” to “terminal business”, marking its first entry into the commercial sector. The renamed terminal business will have two branches: one will provide products for the public and the other will focus on government and enterprise customers.

Richard Yu, CEO of Huawei’s terminal business, said the division will leverage hardware and software to enrich product categories such as notebooks, desktops and monitors, tablets, smart displays and wearables, focusing on providing solutions for governments and six major industries such as education, healthcare, manufacturing, transportation, finance and energy. At present, Huawei’s terminals have served more than 25,000 government and enterprise customers in China, covering 31 provinces.

Huawei’s terminal business product lines include MateBook B, MateStation B, Display B, Pad C, PixLab B, Smart Display B and WATCH B.

Huawei claims that its advantage lies in meeting the multi-dimensional management needs of organizations or enterprises for terminal equipment by relying on the customization capability brought by HarmonyOS. In addition, Huawei provides multi-level data security solutions to ensure the security and reliability of data transmission.

Yu said Huawei’s existing products have been widely applied in business areas such as insurance and healthcare. Based on Huawei’s wristband data, China Merchants Life Insurance has achieved differentiated pricing for different consumer groups and optimized insurance plans.

Entering the commercial sector is a realistic exit door for Huawei’s consumer sector. Last year, Huawei’s revenue from its consumer business, which was the company’s main source of revenue due to booming smartphone sales, fell 49.6% year-on-year to 243.4 billion yuan ($37.82 billion).

A Huawei insider said products used by enterprises have slightly lower requirements for chips than smartphones, and Huawei’s current ability to obtain chips is sufficient to meet existing demand. More importantly, Huawei needs new revenue streams as the way forward for its smartphone business is still unclear.

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Huawei has long shown signs of entering the commercial sector. Last year, Huawei launched products such as laptops and desktops for business use, and established a certain influence in government and enterprise markets.

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