Huawei pivots back to smartphones amid electric vehicle slowdown

Huawei is executing a strategic pivot to refocus on its smartphone business following a slowdown in the electric vehicle sector. The company recently launched its Mate 90 series, which features proprietary chips utilizing LogicFolding architecture. This internal technology allows the firm to achieve high performance without relying on the advanced lithography processes of international foundries.

This shift comes as Huawei faces declining momentum in the automotive market, where vehicle deliveries utilizing its technology dropped by 29% in September. The company is also facing intense competition in the EV space from players like BYD. By prioritizing smartphones, Huawei aims to consolidate its technological independence and reclaim market share in China, even as the broader domestic smartphone market experiences a downturn.