Huawei's scale itself is larger than millet, so whether it is operating income or profit is more than millet in normal, but at present, millet did not announce the first quarter of 2020 earnings, so in the end, Huawei's revenue and profit is not 6 times that of millet is not easy to say.
The last two days Huawei announced its financial report for the first quarter of 2020, according to Huawei's published financial data, in the first quarter of 2020, Huawei's operating revenue was RMB 182.2 billion, an increase of about 1.4% compared to the same period of the previous year's RMB 179.7 billion, and the quarter's net margin was 7.3%, which is equivalent to a net profit of about 13.3 billion yuan.
Against the backdrop of a less-than-optimistic overall global economic situation, with foreign exports suffering and China's economy declining by 6.8% in the first quarter, it's really a remarkable achievement that Huawei was able to record positive growth.
But this time, Huawei announced its earnings report and did not announce the revenue of specific businesses, such as how many cell phone sales? How much is the revenue? Huawei did not announce, but with reference to the first quarter of 2020 global cell phone sales and China's cell phone sales, it is expected that Huawei's cell phone sales should be less than ideal.
For example, according to relevant statistics, from January to March 2020, the overall shipments of the domestic cell phone market fell by 38.9%, 56% and 23.3% year-on-year, respectively, and Huawei's two brands currently have a market share of close to 40% in the country.The full year of 2019, China's cell phone shipments reached 389 million, which is equivalent to the two Huawei brands of domestic shipments of close to 155 million units, and domestic cell phone shipments accounted for about 64% of Huawei's annual shipments of 240 million units.
In 2019, Huawei's consumer business, including products such as cell phone bracelets, has a revenue of 467.3 billion yuan, from which it can be roughly deduced that Huawei's domestic cell phone operating income in 2019 is probably around 290 billion yuan, an average of 72.5 billion yuan per quarter.
If we refer to January to March 2020, the overall domestic cell phone market shipments fell 38.9%, 56% and 23.3% year-on-year, respectively, to calculate, in the first quarter of 2020, Huawei's domestic cell phone sales should not be more than 30 billion, the year-on-year decline is still very obvious.
And the first quarter of 2020, Huawei's overall marketing is able to achieve positive growth, which business revenue contribution should be other than cell phones, such as computers, tablets, cell phones, communication equipment, smart equipment and so on.
At present, Xiaomi has not announced its financial results for the first quarter of 2020, but we can refer to the performance of 2019, as well as the performance of global cell phone shipments in the first quarter of 2020 to roughly project the performance of Xiaomi.
In 2019, the total operating revenue of the Xiaomi Group reached 205.8 billion yuan year-on-year growth of 17.7%, and the adjusted net profit was 11.5 billion yuan, an increase of 34.8% year-on-year; while Huawei realized revenue of 858.8 billion yuan for the whole year of 2019, an increase of 19.1% year-on-year, with a net profit of 62.7 billion yuan.
Equivalent to 2019 Xiaomi's revenue is about 24% of Huawei's, net profit is about 18% of Huawei's, and Huawei's net profit is almost 6 times that of Xiaomi.
As for what Xiaomi's revenue numbers will be in the first quarter of 2020, I think it should grow a bit better than Huawei.
On the one hand, it is because Xiaomi's business scope is relatively wide, coupled with Xiaomi's foreign cell phone market is mainly aimed at some developing countries such as India, and Huawei's cell phone is mainly aimed at Europe and the United States in a number of countries, but because Huawei's cell phone is restricted, Google-related applications can not be used on Huawei's cell phone, so Huawei's sales of cell phones in foreign countries have obviously had a great decline, but Xiaomi in general has not suffered The impact is not too great.
For example, in the first two months of 2020, Xiaomi and Huawei cell phone shipments are about the same, which Huawei shipped 12.2 million units in January, Xiaomi shipped 10 million units, Huawei shipped 5.5 million units in February, Xiaomi shipped 6 million units, the two-month total Xiaomi overall shipments of 16 million units, Huawei shipments are 17.7 million units. 17.7 million units.
Xiaomi's shipments in the first two months were close to Huawei's, and even exceeded Huawei's shipments in February, which has a very important reason is that Xiaomi's foreign markets are less affected.
So not surprisingly, I personally think that in the first quarter of 2020 Xiaomi's revenue growth rate should be a little better than Huawei's, and the gap between Xiaomi's net profit and Huawei's net profit is also likely to narrow further.
The new crown epidemic outbreak period, Huawei in the first quarter of 2020 can maintain 1.4% year-on-year growth, has been a miracle!
After all, GDP in the first quarter are lower by 6.8% year-on-year, Huawei is stabilizing growth in the face of adversity!
With 182.2 billion in revenue, Huawei is pretty awesome!
(Screenshot from Huawei's official website)
Huawei's revenue in 2019 is 858.8 billion yuan, and its net profit is 62.7 billion yuan;
Xiaomi's revenue in 2019 is 205.8 billion yuan, and its adjusted net profit is 11.5 billion yuan;
Huawei's revenue is more than four times as much as that of Xiaomi, and its profit is more than five times as much as that of Xiaomi!
As of now, Xiaomi has not yet announced its Q1 2020 earnings report, and there is no way to know Xiaomi's revenue and profit!
However, in the first quarter of 2019, Xiaomi's revenue was 43.757 billion yuan and net profit was 3.192 billion yuan!
Xiaomi is the main Internet marketing, this epidemic will not have too much impact on Xiaomi's revenue and profit!
If Xiaomi also calculates according to the year-on-year growth of about 1.4%, the revenue will reach 44.370 billion yuan! (in real terms)
1822/443.70, about 4.1 times!
Huawei's revenue would still be about 4 times that of Xiaomi!
......
Comparisons between Q1 2020 net profits are hard to compare since Xiaomi hasn't announced them yet!
Huawei's net profit margin of 7.3% should be about the same when comparing Xiaomi!
In the first quarter of 2019, Xiaomi's net profit was 3.192 billion yuan, with revenue of 43.757 billion yuan, and a net profit margin of about 7.3%;
For the whole year of 2019, Xiaomi's net profit margin was 115/2058, with a net profit margin of about 5.8%!
However, Xiaomi's comprehensive net profit margin of hardware is particularly low;
In fiscal year 2019, Xiaomi's comprehensive net profit margin of hardware is less than 1%; however, Xiaomi's Internet business, the profit is still quite good!
Comprehensively, millet is also quite profitable, the net profit margin is to exceed 5%!
......
Nowadays, Huawei's growth rate is starting to slow down under M's suppression; but because all the product lines of Huawei's brand are laying out high-end products, the profits are still going to grow steadily!
In 2020, Xiaomi wants to maintain last year's growth rate, especially difficult; especially Xiaomi's cell phone business, want to grow, too difficult!
But Xiaomi will still be very profitable, because Xiaomi's non-smartphone smart hardware sales are growing fast, and Internet revenue is growing quite fast!
Hello, let me talk about my opinion.
According to the 2019 annual financial report, Xiaomi's main profit lies in advertising revenue, hardware profit is less than 1%, that is to say, cell phone profit is very small, so this epidemic is not a big impact on Xiaomi. We can see that Xiaomi's first quarter 2020 financial report is favorable, with revenue of 43.8 billion yuan, an increase of 27.2% year on year, Xiaomi is still in a healthy development.
Huawei's main business is cell phones, routers, 5G devices and other hardware equipment as the main profit model. Now received relevant sanctions and Google's intervention, cell phone sales in foreign countries appeared a certain amount of decline, but did not affect the development of Huawei. Despite the new Crown Pneumonia epidemic and the pressure of the United States, Huawei has resisted the "pressure", revenue can still maintain growth, Huawei's adoption of the employee shareholding structure, business continuity program, and investment in R & D. It is understood that in the first quarter of 2020, Huawei's sales of hardware equipment, such as routers and 5G devices, have declined. It is understood that in the first quarter of 2020, Huawei realized sales revenue of 182.2 billion yuan, a year-on-year increase of 1.4%, net profit margin of 7.3%. This data is considered hard-won, and Huawei's self-research and development capabilities play a decisive role. At the same time, Huawei, together with its partners, quickly launched a variety of 5G and AI medical applications, which played a huge role in controlling the epidemic.
From the current point of view, Xiaomi's accumulation is still not as strong as Huawei's, and Huawei's leadership in a number of technologies is not available to Xiaomi. The thin camel is bigger than a horse, despite the impact, but still can crush millet. We have to know that the development mode of the two companies is not completely consistent, for example, millet also has the development of the direction of smart home appliances. So, you can't compare the two, it's not comparable. In short, I hope that the two companies can be healthy and stable development, rivals to look outward, come on to kill Apple.
I hope this can help you!
China's first-quarter GDP saw an unprecedented drop due to the impact of the nationwide New Crown epidemic: the latest data released by the National Bureau of Statistics shows that China's GDP fell by 6.8% year-on-year in the first quarter of 2020.
The country's industries have seen large and significant declines in operating results due to work stoppages and production shutdowns. The recently announced first quarter results for Huawei are one of the few bright spots on the national scene, with revenue of 182.2 billion in the first quarter, up 1.4% year-on-year.
In such a poor economic environment, why Huawei can still achieve such business results, I think there are several reasons:
Huawei is located in the communications industry is related to the national economy and people's livelihood of the important basic industries. As far as I know, in addition to the key epidemic areas, Huawei resumed normal work nationwide as early as February 1st.
People in the communications industry contributed greatly to the success of the epidemic prevention effort and the timely resumption of work across the country.
Huawei's annual operating revenue for 2019 is 858.8 billion yuan, which is among the highest in the country and even globally. The inertia of a company as large as this in terms of business activity is also huge.
Although the impact of the New Crown epidemic had a huge economic impact, it did not fundamentally undermine Huawei's normal operating base . By virtue of its operational inertia, the operating performance could be maintained at around a normal value.
Huawei has four main business segments: carrier business, consumer business, enterprise network business, and AI and cloud business.
The impact of the Xin Guan epidemic on Huawei is mainly reflected in the consumer business, Huawei's cell phone sales fell sharply in February, but sales in March rose sharply; the operator business, because of the operators faced with such special customers, customer demand did not stop during the epidemic; business network business may be the most affected by the epidemic, but its business volume accounted for a relatively small percentage of the overall performance of Huawei will not have a great impact on the overall results. The business network business may be the most affected by the epidemic, but its business volume accounts for a relatively small proportion, and will not have too much impact on Huawei's overall performance; AI and cloud business, because of the specificity of its business, is almost not affected by the epidemic.
Although this reason can be categorized into the first point to say, but because of its relatively large impact on the performance of Huawei's operations, it is listed as a separate point.
After the epidemic was effectively controlled, the country's three major carriers have increased their efforts to promote 5G network construction, and have begun bidding for 5G network equipment. In the concluded China Mobile 5G access network, core network, bearer network bidding, Huawei has achieved the largest share, and are substantially ahead of the second place. In addition, in China Telecom and China Unicom's open bidding, Huawei also gained the largest market share.
5G market share of a substantial lead, for Huawei's first-quarter operating results to maintain growth, provide a great help!
During the epidemic period, there was a significant decline in cell phone sales nationwide, due to millet's business type and model is relatively single, its operating results by the impact of the epidemic will be relatively large, so Huawei's sales revenues and profits are still able to maintain the original huge advantage over millet!
April 21, Huawei handed over the first quarter of the "answer sheet", Huawei, although the year-on-year growth of 1.4%, but by the new crown and the impact of the United States, compared with last year's increase, poor.
According to the results announced by Huawei, Huawei's first-quarter revenue of 182.2 billion, an increase of 1.4% year-on-year, net profit margin of 7.3%. And last year's first-quarter revenue growth of up to 39%, net profit was 8% . Compared to the two, Huawei's performance in the first quarter of this year may not be very satisfactory, but it is also very helpless.
Earlier, netizens found that the price of Huawei's P40 phone released in Europe ended up being cheaper than at home. Many netizens complained that Huawei, as a domestic "warm" brand, is specializing in pitfalls for Chinese people. In fact, this is also Huawei's helpless move. Huawei's GMS was cut off by Google, the use of their own HMS, in order to attract consumers, in order to sales discount is really helpless, is also understandable.
Even so, P40 sales in Europe should not be too dazzling, after all, the European people need a process of acceptance, I do not know the first degree of decline in profits, and this has nothing to do. The impact of the new Crown is self-evident.
Some people say that Huawei's profit margins are six times that of millet. I don't think it's comparable, although Glorious was born to do with Redmi; every year, Huawei's flagship and Xiaomi's flagship are always compared by others; Huawei fans always have to spray each other online with Xiaomi's fans. Some people even say, "Those who buy Huawei will never buy millet, and those who buy millet will never buy Huawei".
But millet and Huawei are two companies that can not be compared, Huawei was founded in 1987, is a communications giant that started in communications, and now 5G world leader, Huawei Hesse specializes in chips, until 2003 Huawei only carried out to play the business of cell phones; and was founded in 2010 millet, the main focus of the phone. Take a giant of a business with millet than, obviously unreasonable.
In fact, both Huawei and Xiaomi have made a very great contribution to the popularization of smartphones in China. Huawei's self-developed Kirin chip has allowed China to make great strides on the road to domestic production. And Xiaomi has brought cell phones into the era of thousand-dollar machines, making great efforts for more people to use cell phones. Although Xiaomi has been using Qualcomm's chips, the world was originally a **** homogeneous, it was Trump who broke the original rules of the game, which can not be blamed on Xiaomi.
With international market conditions so severe, Huawei released its first quarter statement, with actual sales of 182.2 billion yuan, up 1.4% year-on-year, and a net profit margin of 7.3%, six times that of Xiaomi.
Last year's net profit margin was 8%, this year's first quarter of only 7.3%, compared to last year's reduction of 0.6%, but to be clear, this year's economic situation is not the same as usual. By the impact of the epidemic and Europe and the United States under the suppression of the performance of major companies have begun to decline, even the GDP is a negative growth of 6.8%, so although there is a small decline, but in such an environment to achieve a net profit margin of 7.3% is also very good.
Xiaomi has always been to Internet retailing started, in high-tech compared to Huawei lacks too much, basically his equipment in addition to the appearance and motherboard own design, the other accessories are outsourcing parts assembled, it is easy to be necked, and recently in the cell phone market sense is also very clear, as long as you give money. Qualcomm's chip will be given to you to use, in the complete lack of chip independent intellectual property rights, by Qualcomm neck when cool. Huawei has experience in this regard, by the United States of America's suppression before they began to launch their own chips and systems, so that they are free from the control of Europe and the United States, to achieve independent and independent system.
Huawei is a national innovative enterprise in terms of technology and other aspects, and has independent intellectual property rights on the chip and system. This is a condition that many domestic cell phone manufacturers can not have, but also the direction of the future long-term development of the enterprise.
I'm not surprised by this result, as Huawei and Xiaomi have a significant gap in terms of company volume and profitable business, but it doesn't affect the normal functioning of the two companies.
First, outside pressure made Huawei's quarterly revenue poor.
Although Huawei's first-quarter marketing revenue reached 182.2 billion, the net profit margin also reached a staggering 7.3%, although the overall performance is not eye-catching, but in this year's such a situation results have made Huawei very satisfied.
This year's external pressure is really a great challenge to Huawei, the former U.S. overseas restrictions on Huawei's 5G, followed by Google's disablement of GMS to pursue, these two things have a fatal impact on Huawei. Huawei can really be said to have done extremely well to achieve a net profit of 7.3% under these two huge pressures.
Second, Xiaomi's profit model determines that the company's profits are extremely low.
We all know that Huawei's main business is communications and cell phone business, making money is also mainly these two pieces; Xiaomi is a cell phone and smart home, but these two pieces now can not make much money.
The cell phone is estimated to feel more obvious, that is, millet is really very willing to spend money on hardware, a cell phone selling price of more than eighty percent of the hardware costs, coupled with the normal operation of the company as well as the business of marketing, to the hands of the millet in fact, the rest is not much. Smart home is considered the future focus of millet business, but now basically no profit; the most profitable advertising business and not much revenue, combined with the natural net profit margin is not high to where.
Third, both companies have their own direction of effort.
In fact, the millet and Huawei together to compare itself does not make much sense, millet in the definition of counting a new Internet company, and Huawei is considered an old entity business, which was not in an order of magnitude. And in terms of future development, the two companies have chosen very different paths.
Huawei is now ready to go on in the communication and cell phone business, Huawei has completed a lot of technology accumulation, these two businesses in the Huawei technology support the future development prospects are very good. Xiaomi is now the main business is still on the phone, but in the future it is more likely to use the phone as a medium to build their own smart home system, so that the two complement each other to generate enough profits to ensure the normal operation of the millet company. Although the two companies have chosen different paths, but at least from the present point of view are very bright prospects.
Although Xiaomi's popularity has increased in the competition with Huawei in cell phones, it's been compared to Huawei's behemoths, and has really been under a lot of pressure that it shouldn't have to endure. I hope the two companies can develop more and more in the future, otherwise the cell phone circle will really lack a lot of fun.
I do not say Huawei's positive problems, such as simple revenue, the strength of the brand, as well as the real numbers, as well as a variety of foreign suppression, the side of the Huawei's situation, the discerning person will be a moment to see to understand, even if the other brands have all kinds of contempt and pick and choose, but everyone's inner heart or subtext know Huawei is Huawei, the other brands or need to take the time to catch up.
From the customized machine labeling production to now have their own cell phone brand, from the telecom equipment manufacturers to produce cell phone parts, to assemble the whole machine, step by step to come over is not easy, but now have seen its efforts, that is, the phone has been a lot of consumers in the hands of the gradual replacement of Apple, although it may also take time, but we still see the happy change and change.
From Apple's phone manpower a, to today's an Apple a Huawei, and other cell phone brands, this change is witnessed, of course, Apple is still that Apple, but Huawei is no longer the previous Huawei, we can see the entire cell phone brand's efforts, but also includes the millet ov the people, but at present it seems that the strength of Huawei is still dominant, even if some people do not so recognized, but sales revenue and profits there is very good. However, sales revenue and profits there are obviously placed, our brand can not be in the thin, can not be no brand effect, mention itself is synonymous with low-end, which is more or less a little embarrassing, but we are changing this image.
Change is happening, I hope to continue, beyond Apple and Samsung is our hope, and do not want this is a luxury.
On April 21, Huawei released its first quarter 2020 operating results, realizing sales revenue of 182.2 billion yuan, an increase of 1.4% year-on-year, with a net profit margin of 7.3%. Still far ahead of Xiaomi.
The strong rise of Huawei's cell phone in recent years has made many netizens think that Huawei is a simple cell phone manufacturer, in fact, it is not, Huawei started with the manufacture of communication equipment, Huawei has been y cultivated and developed in the field of communication equipment for many years, and now it has mastered the world's first 5G technology, in fact, Huawei has two major revenue businesses: one is communication, and the other is cell phone.
2019 is the most difficult year for Huawei, in May 19, the United States upgraded its restrictions on Huawei, listed Huawei as a list of entities, restricting U.S. companies from trading with Huawei. In this way, Huawei's overseas market suffered a major blow, but the domestic market is the more pressure, the more ferocious support for Huawei. The U.S. has helped Huawei do the best advertising in China, and now many people buying cell phones are called a patriotic expression.
Huawei's self-developed Kirin cell phone chip has also entered a mature stage, and in terms of performance, it can also compete with the Qualcomm Snapdragon cell phone chip, and is only used in their own phones. At the same time, Huawei has released several 5G cell phones, and received unanimous praise, and in the domestic high-end cell phone market continues to erode the share of Apple's cell phone market.
In August 2019, Huawei officially released its self-developed cell phone operating system Hongmengos, a microkernel-based distributed operating system for the whole scene, which will be adapted to cell phones, tablets, TVs, smart cars, wearables and other multi-terminal devices, and its birth opened the prologue to a permanent change in the global pattern of the operating system, and is applied to many of Huawei's products. This is a product that Huawei is invincible, and will account for a large portion of Huawei's revenue in the future.
There are only a handful of 5G technology and equipment suppliers in the world, and Huawei's 5G technology and equipment has been at the forefront of the world's construction of 5G base stations globally, and more and more countries are taking the initiative to invite Huawei to participate in the construction of 5G. So it's not surprising that Huawei has this kind of revenue.
Summary
Huawei is not only a Fortune 500 company, but also a creative enterprise, and the ability to continue to innovate is the basis of Huawei's survival, but also brought Huawei a lot of returns. Some say that Xiaomi, which is in the startup phase, has already jumped to become the world's fourth largest cell phone manufacturer, so it is still hard to say whether Xiaomi can surpass Huawei in the future. Do you think it's possible for Xiaomi to overtake Huawei in the future?
Unexpectedly, Huawei's revenue is much higher than Xiaomi's, because the two volumes themselves are different. What's not expected is that Huawei is still able to have a net margin of 7.3% despite being suppressed by the US, which is very good.
It's really quite shocking that Huawei managed to do so well in the first quarter, because there are two things that are both very bad for Huawei:
1. Being suppressed by the US has led to a rapid decline in sales of Huawei's high-end phones abroad.
2, Huawei's main business is still offline, so the epidemic still has a big impact on Huawei.
In this case Huawei still has 182.2 billion in revenue, a year-on-year growth of 1.4%, 7.3% profit margin, can only say that it is really powerful.
We all know that although the revenue of the cell phone business has accounted for a large part of Huawei, but Huawei's other core businesses are also industry-leading, so the difference between the two revenues should be large.
Furthermore, even compared to the cell phone business, millet is still mainly rely on red rice low-end cell phone volume, high-end cell phone sales are not high. And Huawei even 5000 yuan price point, but also to ensure sales, so the cell phone business of the two revenue is not comparable, even if the millet main online, and not affected by the epidemic a lot of cases.
Finally, Xiaomi's current marketing strategy is always touching Huawei, to increase their own heat, but every time is to be hit in the face, I really hope that Xiaomi can do a good job of the product, the product is good consumers will naturally buy, the product is not recognized by the consumer, but to increase their own heat to attract some of the unknown situation of the user, it is not the pit people.