Core Insights - Huawei and SAIC have launched the first model of the Shangjie brand, the Shangjie H5, priced below 200,000 yuan, marking a significant entry into the family car market [2][3][4] - The HarmonyOS 5 ecosystem has shown remarkable growth, with over 17 million devices connected as of September 20, 2023, indicating strong adoption across various product categories [2][7][8] Product Launch - The Shangjie H5 is priced starting at 159,800 yuan, with the high-end version featuring Huawei's ADS 4 priced at 179,800 yuan, breaking the previous price barrier of 200,000 yuan for Huawei's smart driving family [3][4] - The vehicle received over 160,000 pre-orders, with 10,000 orders placed within the first hour of its launch [4][5] Market Strategy - Huawei's executive Yu Chengdong highlighted the challenges of producing low-cost vehicles, stating that the company has historically struggled with profitability for cars priced below 300,000 yuan [3][5] - The collaboration with SAIC is credited for achieving cost control and supply chain advantages, enabling the competitive pricing of the Shangjie H5 [3][5] Ecosystem Development - Despite slower progress in the automotive sector, the overall HarmonyOS ecosystem is rapidly expanding, with a significant increase in device adoption from 10 million to 17 million in just over 50 days [7][8] - The HarmonyOS 5 version has been designed to operate independently of Unix and Linux, enhancing its appeal and functionality [7][8] Future Prospects - Huawei aims to develop a robust developer ecosystem, with over 30,000 HarmonyOS applications currently in development, targeting a goal of 100,000 applications by 2025 [8][9] - The company has initiated the "Tiangong Plan," committing 1 billion yuan to support AI ecosystem innovation, indicating a strategic focus on enhancing the HarmonyOS platform [9][10]

Core Insights - The article discusses the transformation of the Zhijie brand into its 2.0 phase, marked by a strategic partnership between Huawei and Chery, involving over 10 billion yuan and a 5,000-person R&D team to enhance the brand [2][8][20] - The launch of the upgraded S7 and R7 models signifies a pivotal moment for Zhijie, showcasing improved features and a new logo, with pre-sales exceeding 20,000 units within 8 hours [4][9][19] Strategic Adjustments - Zhijie has transitioned to an independent electric vehicle company from the Chery system, gaining autonomy in decision-making and strategic direction [6][8] - Huawei will take a leading role in strategic decisions and management for Zhijie, while Chery will continue to support as a priority project [8][20] Product Development - The new S7 and R7 models are equipped with advanced driving assistance hardware, including Huawei's 192-line lidar and multiple radar systems, enhancing safety and functionality [4][9] - The company has established a new R&D center in Wuhu, increasing its R&D personnel to 5,000 and investing over 10 billion yuan, while also upgrading its manufacturing processes to achieve 100% automation in key areas [11][13] Market Positioning - Zhijie aims to strengthen its competitiveness in the smart vehicle market, having already surpassed the Model Y in sales with the R7 model [9][19] - The brand's strategy includes leveraging Huawei's technology and market experience to enhance customer experience and service quality [15][20] Future Outlook - The introduction of the S7 and R7 models is just the beginning, with plans for additional models, including a large SUV (R9) and an MPV, expected to launch in the near future [19][20] - The transformation of Zhijie represents a broader trend in the Chinese electric vehicle industry, moving from electrification to a focus on intelligent features and user experience [20]

Core Viewpoint - The article discusses the transformation of the Zhijie brand, marking its entry into the 2.0 phase of development, driven by a strategic partnership between Huawei and Chery, with significant investments in R&D and product upgrades [2][12][31]. Group 1: Strategic Partnership and Investment - On August 7, Huawei and Chery signed a strategic cooperation agreement, committing over 10 billion yuan and a 5,000-person R&D team to enhance the Zhijie brand [2]. - The partnership aims to leverage Huawei's technological expertise and Chery's manufacturing capabilities to create a more competitive electric vehicle brand [12][31]. Group 2: Product Launch and Market Response - The new models, S7 and R7, were launched with pre-sale prices starting at 258,000 yuan and 268,000 yuan, respectively, featuring a new logo and upgraded comfort features [3][6]. - The pre-sale saw over 20,000 orders within 8 hours, indicating strong consumer interest and signaling a shift in the brand's market positioning [6][7]. Group 3: Technological Advancements - The S7 and R7 models are equipped with advanced driving assistance hardware, including Huawei's 192-line lidar and multiple radar systems, enhancing safety and driving experience [5][12]. - The new models are part of a broader strategy to integrate Huawei's cutting-edge technology into Zhijie's offerings, aiming to provide a superior user experience [12][31]. Group 4: Organizational Changes and R&D Focus - Zhijie has transitioned to an independent electric vehicle company, allowing for more agile decision-making and strategic direction led by Huawei [10][12]. - The company has established a new R&D center in Wuhu, increasing its R&D personnel to 5,000 and investing over 10 billion yuan in development [16][31]. Group 5: Manufacturing and Supply Chain Enhancements - The Zhijie super factory has undergone upgrades to achieve 100% automation in key production processes, ensuring high-quality standards [20][22]. - The supply chain has been restructured to align with other premium brands under Huawei, enhancing product quality and competitiveness in the 20-30 million yuan price range [21][22]. Group 6: Future Product Strategy - The article highlights the importance of flagship products for Zhijie's market success, with plans for new models, including a large SUV (R9) and an MPV, expected to launch in the near future [30][31]. - The strategic focus on product innovation and market responsiveness is seen as crucial for Zhijie's growth in the competitive electric vehicle landscape [26][31].

Core Insights - The partnership between Huawei and Chery is deepening with the launch of the Zhijie brand and the establishment of dual design centers in Shanghai and Shenzhen, marking a significant strategic shift towards electric vehicles in China [1][2] - The new Zhijie R7 and S7 models, equipped with advanced technologies, are seen as a critical step in the brand's transformation and ambition to capture a larger market share [2][14] - The restructuring of the Zhijie project aims to enhance decision-making efficiency and resolve previous internal conflicts between the two companies [5][6] Group 1: Strategic Developments - Zhijie has officially launched its dual design centers in Shanghai and Shenzhen, indicating a commitment to product innovation and market responsiveness [1] - The decision to focus entirely on the Zhijie brand, abandoning the Star Era brand, reflects Chery's strategic prioritization of Zhijie as its core business [4][5] - The introduction of the new models is part of a broader strategy to penetrate various market segments, including the high-demand MPV market [4][6] Group 2: Product Innovations - The new Zhijie models will feature high-end technologies such as 192-line laser radar and advanced driving assistance systems, showcasing a commitment to quality and innovation [2][13] - The "pure blood HarmonyOS" concept is being implemented in the new models, emphasizing a fully integrated technological approach [2][14] - The new models are designed to simplify user choices by standardizing key features across all variants, addressing previous customer complaints about configuration options [13][14] Group 3: Operational Efficiency - The restructuring of Zhijie into an independent subsidiary aims to streamline operations and improve efficiency in decision-making processes [5][6] - The establishment of a dedicated R&D base in Wuhu is intended to enhance the development of innovative technologies and support the brand's long-term growth [7][10] - The integration of a unified supply chain and automated manufacturing processes is expected to improve production efficiency and product quality [9][10] Group 4: Market Challenges and Responses - Zhijie has faced significant challenges, including delivery issues and fluctuating sales, which have prompted a reevaluation of its operational strategies [8][10] - The brand's initial success was marred by production delays and supply chain disruptions, leading to a reassessment of its market approach [8][10] - In response to market pressures, Zhijie is focusing on building trust with consumers through improved communication and customer service initiatives [9][10]

Core Viewpoint - The collaboration between Huawei and Chery through the launch of the Zhijie brand and the establishment of dual design centers in Shanghai and Shenzhen marks a significant strategic shift, aiming to reshape the landscape of China's smart electric vehicle market with a focus on Huawei's full-stack technology and the "pure blood HarmonyOS" approach [1][4][5]. Group 1: Strategic Developments - On August 7, the Zhijie brand strategic cooperation agreement was signed in Shenzhen, and the dual design centers were officially opened, indicating a new starting point for the Zhijie brand after internal adjustments and market fluctuations [2]. - Chery has fully committed to the Zhijie brand, abandoning the Star Era resources, which is expected to enhance Zhijie's market position and eliminate internal competition for resources [8][10]. - The launch of the new R7 and S7 models, referred to as the "Double 7 New Models," is seen as the first step in brand rejuvenation, featuring advanced technology such as 192-line laser radar and the Huawei ADS 4 driving assistance system [5][26]. Group 2: Product and Market Strategy - Zhijie plans to expand its product lineup beyond the Double 7 models, with intentions to introduce a large SUV (R9) and the first MPV model under the HarmonyOS driving system, reflecting ambitions to penetrate broader market segments [7]. - The "Double 7 New Models" are positioned as a critical product for achieving the "third generation of maturity," with a focus on high-end specifications and user experience, aiming to compete directly with established players like Tesla [25][26]. - The strategy includes a "no optional extras" approach, where key features are standardized across all models to simplify user decision-making and enhance customer satisfaction [25][26]. Group 3: Operational and Structural Changes - The restructuring of the Zhijie project has transitioned from a divisional model to an independent subsidiary, allowing for more efficient decision-making and a clearer delineation of responsibilities between Huawei and Chery [13][14]. - The establishment of a dedicated R&D base in Wuhu, along with the relocation of the engineering team, aims to enhance research efficiency and align with Huawei's operational standards [15][11]. - The collaboration has evolved from initial disagreements over control to a more integrated partnership, with Huawei taking the lead in product quality and operational management while Chery provides strategic support [16][13]. Group 4: Challenges and Adaptations - Zhijie's journey has faced significant challenges, including delivery issues and market fluctuations, which have prompted a reevaluation of operational strategies and a focus on rebuilding trust with consumers [18][20]. - The brand's initial high order volume for the S7 was met with delivery delays due to production capacity issues, leading to a reassessment of supply chain resilience and user response mechanisms [18][20]. - The transition from a reliance on Huawei's brand strength to a more user-centric approach marks a critical evolution in Zhijie's operational strategy, emphasizing direct user engagement and efficient manufacturing processes [20][21].

Core Viewpoint - Huawei's Pura 80 series represents a significant advancement in imaging technology while maintaining the same pricing strategy as its predecessor, Pura 70, aiming to compete directly with Apple in the high-end smartphone market [2][3][4]. Pricing Strategy - The Pura 80 series continues the "add more without raising prices" approach, with the Pura 80 Pro starting at 6499 yuan, Pro+ at 7999 yuan, and Ultra at 9999 yuan, reflecting a commitment to high value [2][3][11]. - Last year's Pura 70 series faced sales challenges due to pricing, leading to a price drop after seven months, which improved sales significantly [11]. Technological Advancements - The Pura 80 series features a one-inch main camera sensor across all models, with significant improvements in imaging capabilities, including a 200% increase in real-time data processing and a 41% enhancement in AI HDR performance [7][16]. - The Pura 80 Ultra introduces a unique "one lens dual long-focus structure," which allows for advanced imaging capabilities, although it presents manufacturing challenges [9][8]. Operating System Integration - All models in the Pura 80 series are equipped with HarmonyOS 5.1, enhancing user experience and integrating advanced features such as AI-driven recommendations for photography [4][16]. - The new operating system has led to a 36% improvement in overall performance and a 47% increase in operational smoothness compared to the previous generation [17]. Market Positioning - Huawei's market share in the high-end segment (over $600) has grown to 38%, showing a 69% year-on-year increase, while Apple has seen a decline [18]. - The company aims to strengthen its ecosystem through the HarmonyOS, targeting 100,000 applications as a sign of ecosystem maturity by 2025 [18].

Core Viewpoint - Huawei's Pura 80 series represents a significant advancement in imaging technology while maintaining the same pricing strategy as its predecessor, Pura 70, aiming to compete directly with Apple in the high-end smartphone market [2][3][4]. Group 1: Product Launch and Pricing Strategy - Huawei officially launched the Pura 80 series on June 11, featuring three models: Pura 80 Pro starting at 6499 yuan, Pura 80 Pro+ at 7999 yuan, and Pura 80 Ultra at 9999 yuan [2]. - The Pura 80 series continues the "add more without raising prices" strategy, which reflects Huawei's confidence in the product's capabilities and aims to enhance channel performance [3][10]. Group 2: Technological Innovations - The Pura 80 series features significant advancements in imaging technology, including a one-inch main camera sensor and the introduction of the "one lens dual focus" periscope telephoto lens in the Ultra model, which is a first in the industry [7][8]. - Huawei has invested heavily in R&D, with a total of 12.49 billion yuan over the past decade, and 1.797 billion yuan in 2024 alone, accounting for 20.8% of its annual revenue [6]. Group 3: Market Position and Sales Strategy - The Pura 80 series aims to leverage the high school examination season to boost sales, with promotional activities targeting students and their parents [11][12]. - Huawei's market share in the high-end segment (over $600) reached 38% in Q1 2025, showing a 69% year-on-year growth, while Apple’s market share declined by 9% to 43% [17]. Group 4: Software Integration and Ecosystem Development - The Pura 80 series is equipped with the HarmonyOS 5.1, enhancing user experience and integrating various smart devices within Huawei's ecosystem [4][15]. - The new HarmonyOS features, including an upgraded AI assistant, aim to improve user interaction and expand the ecosystem's capabilities [16].