Huawei can make wearable devices without using cutting-edge chips applied to smartphones
Huawei's smartphone business has been blocked due to the U.S. restrictions on exports of cutting-edge semiconductor , and the company has been working to increase sales in the Japanese smartwatch market.
But Huawei's Japanese branch recently released a round smartwatch for business users.
"Because Japanese consumers have a unique and keen vision, this smart watch can be accepted in Japan, so it will achieve greater success worldwide," said Yang Tao , head of the company's equipment department.
affordable is a big selling point of Huawei smartwatch . This new smartwatch product is priced at 27,280 yen (US$203), while the competing Apple Watch starts at 37,800 yen, while some Huawei smartwatches are priced at less than 10,000 yen.
Compared with the typical three-piece set of Apple products, Huawei's product line includes about 15 products, from business watches to fitness bracelets.
"We will consolidate our market advantage by launching new products in the thin strip category," said Yang Tao.
After the United States issued an export ban in 2020, restricting the company from obtaining advanced chip , Huawei has obviously shifted its product focus to smartwatches that can be made from off-the-shelf semiconductors. Unlike smartphones, smartwatches do not need to use advanced chips to run, and it’s all about improving performance every year.
"The chip used in smartwatches is different from the chip used in smartphones because one of the key requirements is energy efficiency," said Hideaki Yokota, director of research at the MM Research Institute in Tokyo.
According to the MM Research Institute report, the sales of Japanese smart watches in the 2021 fiscal year reached a record 3.43 million, and increased by by 49.6% year-on-year. As consumers become more health-conscious during the pandemic, Japan's smartwatch consumer market is also growing.
Apple dominates the market with a share of more than 60%, but Huawei ranks third with a share of 10.3%, with sales of 353,000 units, about triple from 122,000 units in fiscal 2020.
Xiaomi also shines in Japan, surpassing Samsung Electronics to rank fifth. Xiaomi’s Smart Band 7 is a best-selling product in the Bic Camera electronics store in Ikebukuro, Tokyo. The product can measure heart rate and blood oxygen levels, and can also monitor sleep modes, but it costs only 6,990 yen, and one of the advantages of this product includes its battery life for two weeks after a full charge.
"has less features than the Apple Watch, making this product more power-saving," said Hideaki Yokota.
Meanwhile, Apple’s goal is to stand out by releasing high-end models suitable for outdoor use. A product launched in September can operate from -20 to 55 degrees Celsius and has improved waterproofing, with a starting price of 124,800 yen, more than double the price of the existing model.
, a subsidiary of Google , focuses on corporate customers (Chinese products are still struggling in this field), and as of November, more than 600 companies have adopted Fitbit watches.
Japanese manufacturers are not idle either. Last year, Casio released the G-shock watch running Google operating system for the first time.
But Japanese smartwatch manufacturers are not ranked in the rankings, and they "can't catch up because foreign smartphone manufacturers quickly launched smartwatches that are worth the money," said Hideaki Yokota.
According to the MM Research Institute, Japan's smartwatch market is expected to nearly double its level in fiscal year 2021 to 6.39 million units by fiscal year 2026. As Apple and Chinese companies (mainly Huawei and Xiaomi) strengthen their influence in the overall electronics market in Japan, Japanese manufacturers will face greater pressure on original products and services.
Huawei and Xiaomi are now struggling to bundle smartwatches with smartphones. Apple touts how its Apple Watch works in conjunction with the iPhone, but Huawei and Xiaomi are not strong in Japan’s smartphone market. Since smartphones are the core product of the electronics ecosystem, smartphone weaknesses may weaken smartwatch sales.
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Author: Linggu Weibu
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