Core Insights - Huawei has formed a strategic partnership with Nanning Watch Factory to produce smartwatches that combine traditional watchmaking techniques with modern technology, featuring the HarmonyOS [1][3] - Nanning Watch Factory gained popularity with its "Guihua" watches, which saw a surge in demand due to their vintage appeal and limited availability, despite being out of production [2][3] - Huawei's smartwatch sales have surpassed Apple's in the Chinese online market, achieving a market share of 31.9% with a year-on-year growth of 24.3% [4] Company Overview - Nanning Watch Factory, established in 1970, is the only professional watch manufacturer in China's ethnic minority regions, known for its high-quality mechanical watches and craftsmanship [2][3] - The factory is fully owned by Nanning Industrial Investment Group, which emphasizes the company's long-standing reputation and expertise in the watchmaking industry [2][3] Market Performance - In 2024, the wearable device market in China sold 57.04 million units, with Huawei leading the smartwatches segment, while Apple's sales declined by 24.6% [4] - Huawei's global wearable device sales reached 26.5 million units in 2024, marking a 54.2% year-on-year increase, positioning the company as the third-largest player globally [4] Technological Integration - The collaboration will result in smartwatches that integrate health monitoring, fitness tracking, and mobile payment features while maintaining traditional aesthetics [3] - The HarmonyOS is expected to enhance the market presence of both Huawei and the new smartwatch offerings, crossing a significant market share threshold [4][5] Future Outlook - Huawei aims to strengthen the HarmonyOS ecosystem, targeting 100,000 applications as a sign of maturity by 2025 [5] - The integration of AI functionalities into smartwatches is anticipated to drive market growth, as the industry adapts to new technological advancements [5]

Core Viewpoint - Huawei has formed a strategic partnership with Nanning Watch Factory to produce smartwatches that combine traditional watchmaking techniques with modern technology, featuring the HarmonyOS [1][5]. Group 1: Partnership Details - The collaboration will result in the launch of smartwatches that integrate traditional craftsmanship with smart features such as health monitoring, fitness tracking, and mobile payment [5]. - Nanning Watch Factory, established in 1970, is the only professional watch manufacturer in China's ethnic minority regions and has a rich history in watchmaking [4][5]. - The partnership aims to revitalize the Nanning Watch Factory by leveraging Huawei's technological capabilities, promoting innovation in the watchmaking industry [5]. Group 2: Market Performance - Huawei's smartwatch market share has been increasing, surpassing Apple in online sales in China last year [2][6]. - In 2024, Huawei's online smartwatch sales in China grew by 24.3%, capturing a market share of 31.9%, while Apple's sales declined by 24.6% [7]. - Globally, Huawei's wearable device sales reached 26.5 million units in 2024, marking a 54.2% year-on-year growth and securing a 13.7% market share, ranking third worldwide [7]. Group 3: Product Features and Market Trends - The upcoming smartwatches will feature a blend of mechanical aesthetics and smart functionalities, catering to consumer preferences for both traditional craftsmanship and modern technology [5]. - The HarmonyOS ecosystem has surpassed 1 billion devices, indicating a strong growth trajectory and a goal to enhance the ecosystem with 100,000 applications by 2025 [8]. - The Chinese smartwatch market is expected to rebound in 2024, with the integration of generative AI and hardware opening new growth avenues [9].