Aug 30, 2024 03:14 PM
TECH
Tech Roundup: Huawei Takes a Bite of Apple’s Market Share, Nvidia Plunges Despite Big Earnings
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Shoppers examine mobile phones at a Huawei store in Qingdao, Shandong province, on Aug. 10. Photo: VCG
Welcome to the Tech Roundup — a briefing of the top technology news making headlines in China and the rest of Asia.
Huawei growth spurt after taking a bite of Apple’s market share
Huawei Technologies Co. Ltd.’s revenue grew for the sixth straight quarter after its smartphones gained market share in China at Apple Inc.’s expense.
The Chinese networking and electronics leader posted a revenue of 239 billion yuan ($33.5 billion) in the June quarter, up 33.7% from a year earlier, according to calculations based on the company’s six-month financial figures.
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- Huawei's revenue grew 33.7% to 239 billion yuan ($33.5 billion) in Q2 2023 despite an 18.6% drop in net profit.
- Didi invested 670 million yuan in AutoAI, taking a 16.46% stake, while NavInfo’s stake diluted to 27.01%.
- Nvidia reported strong earnings yet saw an 8.4% share drop; Meituan's shares rose 9.7% after beating quarterly estimates and announcing a $1 billion buyback.
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Who’s Who
- Huawei Technologies Co. Ltd.
- Huawei Technologies Co. Ltd. reported a revenue increase for the sixth consecutive quarter, with its June quarter revenue reaching 239 billion yuan ($33.5 billion), a 33.7% rise from the previous year. However, its net profit fell by 18.6% to 35.5 billion yuan due to prior one-time gains from divestments. Huawei's increased smartphone market share in China contributed to its growth, primarily at the expense of Apple's market share.
- Honor Device Co. Ltd.
- Honor Device Co. Ltd. was a mobile-maker sold by Huawei Technologies Co. Ltd. to a consortium in 2020. The sale contributed to Huawei's one-time gains from divestments, affecting its financial figures in subsequent years.
- Didi Global Inc.
- Didi Global Inc. is investing 670 million yuan in AutoAI (Nanjing) Technologies Co. Ltd., taking a 16.46% stake to become its second-largest shareholder. This investment marks Didi’s move away from carmaking to streamline its business, specifically by focusing on smart cockpit development through its smart transportation arm.
- NavInfo Co. Ltd.
- NavInfo Co. Ltd. is a digital mapping company involved in smart transportation. Didi Global invested 670 million yuan in an affiliated firm of NavInfo, AutoAI (Nanjing) Technologies Co. Ltd., to advance smart cockpit development. NavInfo, the largest shareholder of AutoAI, will also invest an additional 100 million yuan, diluting its stake from 30.29% to 27.01%.
- AutoAI (Nanjing) Technologies Co. Ltd.
- AutoAI (Nanjing) Technologies Co. Ltd. is an affiliated firm of digital mapping company NavInfo Co. Ltd., engaged in smart cockpit development. Beijing-based Didi Global Inc. is investing 670 million yuan in AutoAI, becoming its second-largest shareholder with a 16.46% stake, while NavInfo remains the largest shareholder with a 27.01% stake after additional investment.
- Meituan
- Meituan shares surged nearly 10%, the largest intraday gain in six months, after surpassing quarterly results estimates and announcing a $1 billion buyback. Despite economic downturn concerns, Meituan's resilient restaurant delivery business is outperforming competitors like Kuaishou Technology, ByteDance, and Alibaba in its main market.
- Nvidia Corp.
- Nvidia Corp. reported another blockbuster earnings quarter despite U.S. export restrictions, with growing sales in China. However, its shares fell 8.4% to $115.02 in after-hours trading as investors were unimpressed by profit and revenue growth compared to last year's surge. Tech companies worldwide anticipate its next-generation Blackwell chips to further accelerate AI development.
- IBM Corp.
- IBM Corp. recently faced criticism for abrupt layoffs in its China R&D units. These layoffs tarnished the company's reputation for valuing employee welfare, a perception rooted in Western corporate culture. The lack of preparation and haste in the process left many employees feeling disrespected and shocked.
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What Happened When
- 2020：
- Huawei sold mobile-maker Honor Device Co. Ltd. to a consortium.
- 2021：
- Huawei sold parts of its server business.
- Early March 2024：
- The previous biggest intraday gain for Meituan's stock before the 9.7% climb.
- June 2024：
- Huawei Technologies' revenue posted a revenue of 239 billion yuan ($33.5 billion) in the quarter, up 33.7% from a year earlier.
- Wednesday, August 28, 2024：
- Didi Global Inc. invested 670 million yuan in an affiliated firm of digital mapping company NavInfo Co. Ltd.
- Wednesday, August 28, 2024：
- Nvidia Corp. reported another blockbuster earnings quarter.
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