Earlier this week, Counterpoint Research had revealed that Huawei had dropped out from the Top 5 smartphone brands market share in China as of Q4 2021. Compared to its 23% market share in Q4 2020, the company now only holds 7% of the smartphone market in China, shrinking to three times smaller than the previous year. Despite this, Huawei’s value as a company as a whole did not decline. Instead, the company’s value has now grown into becoming the top 10 most valuable brands of 2022.
On Twitter, Huawei recently retweeted a report from Brand Finance, one of the world’s leading brand valuation consultancies headquartered in London. In the Twitter post, Huawei mentions that despite many unforeseen challenges faced by the company, it had managed to improve its rankings in the world’s most valuable in 2022. For reference, the company was ranked the 15th most valuable brand of 2021, however in 2022, the company managed to jumped 6 spots and became the 9th most valuable brand of 2022 among 500 other international brands. Huawei was to be valued at 71.2 billion USD.
As for the report from Brand Finance, it can be accessed via brandirectory.com. From the report, it was concluded that Apple is the most valuable brand of 2022, with an estimated valuation of 355.1 billion USD. Coming in as runner ups are the 3 other US tech giants, namely Amazon valued at 350.3 billion USD, Google at 263.4 billion USD and Microsoft at 111.9 billion USD.
As for other tech companies, Samsung is ranked 6th valued at 107.3 billion USD, Facebook is ranked 7th valued at 101.2 billion USD and Verizon was ranked 10th most valuable brand of 2022 valued at 69.6 billion USD.
So how did Huawei manage to increase its brand value despite facing supply issues because of the US sanctions? Well, although Huawei’s smartphone market share fell drastically, Huawei’s other businesses are facing exponential growth. Ever since Huawei got restricted by the US sanctions, the company has been branching out into other businesses, such as Smart TVs, Smartwatches and Smart Electric Cars as well.
Huawei collaborated with the famous car manufacturer, Seres, to launch its premium hybrid electric smart car series, AITO, with the first model being the AITO M5. Huawei Executive, Richard Yu mentioned that by diversifying Huawei’s product catalog to include cars, its retail business could survive in China, as the profit margins per unit for cars are generally higher than its premium smartphones. Richard also boldly claims that “With the appeal of the Huawei AITO M5 smart cars and paired with its countywide sales network, Huawei will be able to sell 300,000 smart cars in 2022.”
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