Core Viewpoint - Huawei has made a significant comeback in the Chinese smartphone market, reclaiming the top position with a market share of 18.1% in Q2 2025, marking its return to the forefront after a challenging period due to sanctions and market competition [5][6][14]. Market Dynamics - The Chinese smartphone market has faced a decline, with Q2 2025 showing a 4% year-on-year decrease in shipments, totaling 68.96 million units, ending a six-quarter growth streak [11][12]. - Despite the introduction of national subsidies, the expected boost in consumer demand has been limited, leading manufacturers to control inventory levels and rely on promotional events to clear stock [10][11][12]. Competitive Landscape - In Q2 2025, Huawei's competitors, including Vivo, OPPO, Xiaomi, and Apple, experienced a decline in shipments, with only Xiaomi showing a slight growth of 3.4% [13][19]. - Honor, once a strong competitor benefiting from Huawei's challenges, has seen its market share drop to approximately 12.8%, failing to rank among the top five smartphone brands [19][20]. Historical Context - Huawei's market share peaked at 46% in Q2 2020 before sanctions led to a significant decline, forcing the sale of its sub-brand Honor [25][26]. - The company has been on a recovery path since 2023, driven by the successful launch of the Mate 60 series and a resurgence in its product lineup [27][28]. Product Strategy - Huawei's strategy includes a focus on high-end smartphones and the introduction of innovative products like foldable phones, where it holds a dominant market share of nearly 50% in China [30][31]. - The company has also been expanding its product offerings, including the launch of the HarmonyOS 6, which aims to enhance AI capabilities and user interaction [43][44]. Future Challenges - Despite regaining the top position, Huawei faces challenges in returning to international markets due to ongoing sanctions and a highly competitive domestic landscape [33][34]. - The smartphone market is entering a phase of saturation, with increased competition from domestic brands targeting the high-end segment [34][35]. - The industry is also experiencing pressure in the foldable smartphone segment, with a 14% year-on-year decline in shipments in Q2 2025 [40]. AI Integration - The rise of AI smartphones is seen as a critical area for future growth, with Huawei aiming to innovate in this space, although it has yet to establish a leading position [41][46]. - The development of AI capabilities within HarmonyOS is part of Huawei's strategy to redefine user interaction and enhance the smartphone ecosystem [44][45].

Investment Rating - The report indicates a positive outlook for the electronic industry, suggesting an "Overweight" rating for the sector, expecting it to outperform the market index by more than 10% in the next six months [32]. Core Insights - The electronic sector has shown a cumulative increase of 4.14% over the past two weeks, outperforming the CSI 300 index by 0.67 percentage points, ranking 17th among the Shenwan industries [2][9]. - Google's Q2 performance exceeded expectations with revenue of $96.43 billion, driven by strong demand in advertising, search, and cloud services, indicating a robust AI commercialization process [27]. - The report highlights a significant increase in AI-related activities, with Google's capital expenditure guidance raised from $75 billion to $85 billion for the year, reflecting strong cloud computing demand [27]. Market Review and Valuation - The SW electronic sector's PE TTM (excluding negative values) is at 47.64 times, placing it in the 94.90% percentile for the past five years and 80.20% for the past ten years, indicating high valuation levels [9][14]. - The electronic sector has seen a year-to-date increase of 8.04%, outperforming the CSI 300 index by 2.60 percentage points, ranking 19th among Shenwan industries [2][9]. Industry News - The report notes a 2.4% year-on-year decline in China's smartphone shipments in Q2 2025, attributed to seasonal factors and inventory adjustments by OEMs [18]. - Counterpoint's market tracking indicates that Huawei maintained its leading position in the Chinese smartphone market with an 18.1% share, up from 15% year-on-year, driven by strong sales of its mid-range nova 14 series [18]. Company Announcements - Notable announcements include a projected net profit increase for Huadian Technology and Shenghong Technology, with expected growth rates of 44.63%-53.40% and 50%-56% respectively for the first half of 2025 [18][25]. - The report also mentions plans for overseas listings by Lixun Precision and other companies, aiming to enhance their global strategic positioning [25][28]. Industry Data - Global smartphone shipments reached 295 million units in Q2 2025, reflecting a 1.03% year-on-year growth [19]. - The report provides pricing data for liquid crystal panels, showing a decline in prices for various sizes in July 2025, indicating potential cost pressures in the display segment [22].

Investment Rating - The report indicates a positive outlook for the electronic industry, suggesting an "Overweight" rating for the sector, expecting it to outperform the market index by more than 10% over the next six months [32]. Core Insights - The electronic sector has shown resilience, with a cumulative increase of 4.14% over the past two weeks, outperforming the CSI 300 index by 0.67 percentage points [2][9]. - Google's Q2 performance exceeded expectations, with revenue of $96.43 billion, driven by strong demand in advertising, search, and cloud services, indicating robust growth in AI commercialization [27]. - The report highlights a significant increase in AI-related activities, with Google's capital expenditure guidance raised from $75 billion to $85 billion for the year, reflecting strong cloud computing demand [27]. Summary by Sections Market Review and Valuation - The SW electronic sector's PE TTM (excluding negative values) is at 47.64 times, placing it in the 94.90% percentile for the past five years and 80.20% for the past ten years [9][14]. - The electronic sector has ranked 17th among all industries in the past two weeks and 19th year-to-date, indicating a competitive performance [2][9]. Industry News - The report notes a 2.4% year-on-year decline in China's smartphone shipments for Q2 2025, attributed to seasonal factors and inventory adjustments by OEMs [18]. - Significant advancements in AI capabilities were reported, with Google's AI Overviews reaching over 2 billion monthly active users, and the Gemini platform achieving 450 million monthly active users [27]. Company Announcements - Notable earnings forecasts include Huadian's expected net profit of 1.65 to 1.75 billion yuan for H1 2025, representing a year-on-year increase of 44.63% to 53.40% [18]. - Shenghong Technology anticipates a net profit increase of 50% to 56% for H1 2025, reflecting strong operational performance [18]. Industry Data - Global smartphone shipments reached 295 million units in Q2 2025, marking a 1.03% increase year-on-year [19]. - The report provides detailed pricing data for LCD panels, showing a decline in prices across various sizes, indicating potential cost pressures in the supply chain [22]. Weekly Perspective - The report emphasizes the importance of upcoming earnings disclosures in the tech sector, which could further influence the AI industry chain positively [27]. - Recommendations include focusing on companies within the server ODM and PCB/CCL supply chains, which are expected to benefit from the ongoing AI demand [27]. Key Stocks to Watch - The report highlights several companies for potential investment, including Luxshare Precision, which is well-positioned to benefit from AI strategies of major clients [28]. - Other notable mentions include Pengding Holdings and Shenghong Technology, both of which have strong market positions in PCB manufacturing [28].

Core Insights - In Q2 2025, China's smartphone shipments declined by 2.4% year-on-year, attributed to seasonal factors and demand front-loading due to subsidies [1] - Huawei maintained its leading position for the second consecutive quarter, increasing its market share from 15% to 18.1% year-on-year, driven by strong sales of the mid-range nova 14 series and significant price reductions on high-end models [1] - Vivo ranked second in shipments, supported by its strong offline channel network and the successful performance of its Y series in lower-tier cities, along with a surge in demand for the newly launched S30 series during back-to-school promotions [4] - OPPO successfully launched the Reno 14 series before the 618 shopping festival, continuing the strong sales momentum of the Reno 13 series, while its sub-brand OnePlus achieved notable growth by focusing on the gaming experience [4] - Xiaomi recorded the second-fastest growth rate in Q2 2025 with a market share of 15.7%, maintaining growth through price reductions on popular models like Redmi K80 and Xiaomi 15, despite not launching new mid-range products during promotions [5] - Apple performed strongly during the 618 shopping festival due to unprecedented price cuts on the iPhone 16 series, particularly the Pro models, although this may pressure sales of the iPhone 17 base model in the second half of the year [5] - Honor is responding to intense market competition by expanding its product lineup, with the mid-range HONOR 400 series launched at the end of May showing promising initial results [5] Industry Outlook - The demand for smartphones in China remains weak, aligning with previous expectations from Counterpoint, although promotions and subsidies have provided some support for stable sales [6] - Counterpoint anticipates a year-on-year growth in the Chinese market for 2025, albeit at a slower pace, with summer promotions and the early release of flagship products in Q3 expected to boost sales and lay a solid foundation for Q4 performance [6] - The industry will continue to monitor the evolving global market landscape, particularly regarding tariff policies, rising component costs, and changes in consumer demand [6]

Core Viewpoint - The Chinese smartphone market experienced a year-on-year decline of 2.4% in Q2 2025, influenced by seasonal factors and demand front-loading due to subsidies [2][3]. Market Performance - Huawei maintained its leading position with a market share increase from 15% to 18.1% year-on-year, driven by strong sales of the mid-range nova 14 series and significant price reductions on high-end models [2]. - Vivo ranked second in shipments, supported by its strong offline channel network and the successful performance of its Y series in lower-tier cities [6]. - OPPO's Reno 14 series launched before the 618 shopping festival, continuing the strong sales momentum from the previous series, appealing particularly to young female consumers [6]. - Xiaomi achieved a market share of 15.7%, with growth driven by price reductions on popular models like Redmi K80 and Xiaomi 15, despite not launching new mid-range products during the promotional period [6]. - Apple saw strong performance from the iPhone 16 series, particularly the Pro models, due to unprecedented price cuts, although this may pressure sales of the iPhone 17 in the latter half of the year [7]. Future Outlook - The demand for smartphones in China is expected to remain weak, consistent with previous forecasts, but sales stability is supported by promotions and subsidies [8]. - Counterpoint anticipates a slowdown in growth for the Chinese market in 2025, with summer promotions and early flagship releases in Q3 expected to boost sales and lay a solid foundation for Q4 performance [8]. - The company will continue to monitor the evolving global market landscape, particularly regarding tariff policies, rising component costs, and changes in consumer demand [8].

Group 1 - The 618 shopping festival has commenced, coinciding with the upcoming Dragon Boat Festival, leading to increased consumer spending [1] - HarmonyOS versions of major e-commerce applications such as JD, Taobao, Pinduoduo, Vipshop, and Dewu have launched promotions for the 618 event, achieving cross-platform consistency [1] - Features like "price drop alerts" and "bump to share" enhance the shopping experience on the nova 14 series, allowing users to easily share product links and receive timely notifications on price changes [4][6] Group 2 - The HarmonyOS e-commerce applications offer improved functionalities and a smoother user experience, making it easier for users of nova 14 and other HarmonyOS 5 devices to enjoy discounts [8] - Users can access exclusive benefits such as a JD PLUS membership and free shipping through the "Harmony Gift" package available on the nova 14 series [8]

Core Viewpoint - Huawei's MateBook Fold is the world's lightest and largest commercial foldable laptop, featuring an 18-inch display and a thickness of only 7.3mm when unfolded, weighing just 1.16kg, combining aesthetics, portability, and immersive viewing experience [1][2]. Design and Materials - The MateBook Fold is available in three colors: Forged Black, Sky White, and Cloud Water Blue, with Forged Black showcasing a unique dual-material and dual-texture design, enhancing both aesthetics and durability [3]. - The device utilizes a carbon fiber SMC (Sheet Molding Compound) process, which enhances impact resistance by three times compared to traditional materials [4]. - The carbon fiber SMC production involves a high-pressure molding process that creates unique textures, emphasizing the product's luxury and artistic attributes [6]. Manufacturing Process - The production of the unique cloud pattern on the device requires 63 processes, including high-temperature and high-pressure molding, as well as precision engraving and imprinting [8]. - Huawei invested 1-2 years in developing a custom high-impregnation carbon fiber material to achieve the desired aesthetic details and eliminate defects such as dry fiber and pinholes [8].

Core Viewpoint - Huawei's HarmonyOS is gaining traction in the Chinese market, with significant advancements in both technology and market share, as highlighted by recent product launches and educational initiatives [1][2]. Group 1: Product Launches - Huawei launched the MateBook Fold, the world's first HarmonyOS foldable laptop, priced at 23,999 yuan, and the MateBook Pro, the first HarmonyOS laptop, starting at 7,999 yuan [1]. - The introduction of HarmonyOS computers signifies a breakthrough for domestic operating systems in the personal computer sector, marking the beginning of the HarmonyOS era for smart terminals [1]. Group 2: Market Position - According to Counterpoint Research, HarmonyOS is projected to capture a 19% market share in the Chinese smartphone operating system market by Q4 2024, surpassing Apple's iOS for four consecutive quarters, making it the second-largest mobile OS in China [2]. Group 3: Educational Initiatives - Huawei's Executive Director and Head of the Terminal BG, Yu Chengdong, engaged with students at Tsinghua University, encouraging them to join the HarmonyOS developer community and emphasizing the importance of core technology for the maturity of an operating system [1].

Core Viewpoint - Huawei returned to Chengdu for the launch of the nova 14 series and HarmonyOS computers, marking a significant milestone in the brand's journey and reflecting Chengdu's growing market importance [2][3]. Group 1: Product Launch and Significance - The nova series has evolved significantly since its inception, with the nova 14 being described as the "strongest product in history" [3]. - The HarmonyOS computer represents a major breakthrough for Huawei, marking the full entry into the HarmonyOS era for its terminal products [6][7]. - The launch event highlighted the importance of collaboration with developers to build a robust ecosystem around HarmonyOS [7]. Group 2: Chengdu's Market Dynamics - Chengdu has seen a surge in its economic strength, attracting 820 new flagship stores in the past year, indicating a vibrant consumer market [2][8]. - The city's software industry is a key component of its electronic information sector, projected to achieve a revenue of 785.19 billion yuan in 2024, with a year-on-year growth of 11.4% [8]. - Chengdu's consumer electronics sales for Huawei's 3C products reached 4.68 billion yuan in 2024, with significant contributions from mobile phones and computers [9]. Group 3: Emerging Trends in Consumer Behavior - Chengdu is becoming a hub for "first-release" products, with brands increasingly choosing the city for their launches, reflecting its growing consumer power and cultural appeal [10][12]. - The city aims to enhance its "first-release economy" by promoting new technology products and establishing itself as a center for fashion and innovation [13][14]. - The establishment of the "Scene Innovation Department" aims to facilitate the testing and optimization of new products in real-world scenarios, driving market demand and innovation [16].

Core Viewpoint - Huawei has launched the nova 14 series and HarmonyOS computers, showcasing innovative products like the HUAWEI MateBook Fold, which is the world's lightest and largest commercial foldable computer, aiming to provide more choices in the computer operating system market [1][3]. Product Launch Highlights - The HUAWEI MateBook Fold features an 18-inch foldable screen, weighs only 1.16 kg, and is 7.3 mm thick when unfolded, offering a highly portable experience [3]. - The HUAWEI MateBook Pro, equipped with HarmonyOS 5, weighs 970 grams and is 13.5 mm thick, setting a new performance benchmark for lightweight laptops [5]. - The nova 14 series emphasizes design and functionality, featuring a unique star ring design and various color options, appealing to younger consumers [9]. Technical Specifications - The HUAWEI MateBook Fold boasts a 3.3K high resolution and a peak brightness of 1600 nits, enhancing the visual experience [3]. - The nova 14 series includes advanced imaging technology with the red maple lens and upgraded Da Vinci portrait engine 3.0, enabling high-quality photography even in low-light conditions [10]. - The nova 14 series supports Beidou satellite communication, allowing users to make calls and send messages without ground network access [12]. Pricing and Availability - The HUAWEI MateBook Fold is priced at 23,999 yuan for the 32GB+1TB version and 26,999 yuan for the 32GB+2TB version [7]. - The HUAWEI MateBook Pro starts at 7,999 yuan, with various configurations available [7]. - The nova 14 series starts at 2,699 yuan for the base model, with the Pro and Ultra versions priced at 3,499 yuan and 4,199 yuan, respectively [13].