This is despite the fact the company launched a device during the recent Mobile World Congress in Barcelona.
He was responding to a question during the firm's analyst summit in Shenzhen, at which he was asked if smartphones are dying because of wearable tech.
Mr Xu said: "I've never figured out why we need to wear smartwatches when everything we need is on our phones."
Mr Xu, who is one of three rotating CEOs at Huawei, each serving six months at a time, is also reported by Forbes to have said: "I'm not a man who wears watches, and I've never been optimistic about this market.His comments have not come as a surprise to some in the industry.
"Smartwatches are a solution looking for a problem, rather than being a game-changer," Ben Wood, an analyst at tech consultancy CCS Insight told the BBC.
Mr Wood also praised Mr Xu's honesty, saying: "It's one view of just one of the three chief executives at Huawei."
The smartwatch sector has been dominated by tech firms such as Apple and Samsung.