Huawei founder and CEO Ren Zhengfei warns of a coming financial crisis - and reveals the company has been learning from Trump.
Entries in Huawei (34)
The security phobia surrounding Huawei has disguised the inventiveness and resilience of the Chinese firm. Last year it clocked a third of all telecom vendor revenues and despite the slowdown in operator spend it's confident of doubling total B2B sales by the end of the decade.
The Huawei Mobile Broadband Forum in Hong Kong this week heard a lot about getting the most out of LTE-A with technologies like carrier agg and C-RAN, and operator presentations virtually all stressed the importance of fibre. There was also plenty of talk about partnering between telcos and content firms, and getting ready for 5G. Here's a few random notes.
About that robust Huawei 1H result: it’s mostly about the device.
After the vendor yesterday reported a 30% boost in first-half sales to 175.9 billion yuan ($28.3 billion), the consumer group today issued its own mini-statement.
Like the company, it’s on a considerable roll, only more so. Revenue for the division increased a hefty 69% year-on-year to 56.3b yuan. It now accounts for 32% of the total, up from 24% this time last year.
Devices have become a big part of Huawei, and perhaps never more so in this period. Of the 40.1b yuan extra topline revenue, almost three-fifths came from the device team. While that includes tablets, wearable and smart home gear, smartphones are far and away the biggest part. Smartphone revenue rose 87% to 44.9b yuan, which the company attributed to a “focus on mid to high-end handsets.”
Unit numbers are impressive, too, with shipments up 39%. Huawei had an 8.8% market share in April, according to Gfk, while Gartner ranked it fourth in Q1 behind Samsung, Lenovo and Apple.
Perhaps the big message here is not just the financials but that Huawei has now become a smartphone as well as a carrier equipment heavyweight. Handset quality, like market share, has been building since it decided four years ago to go after the device market.
So is the brand. In a media briefing Huawei reminds that last year it became the first ever Chinese brand on the Interbrand top 100, and it ranks 79th on the BrandZ chart of valuable brands.
The device group is well ahead of its $16b revenue target for 2015. It's now aiming for $20b.
In his first appearance in a public forum in the west, Huawei boss Ren Zhengfei denies he is mysterious, but also describes himself as knowing nothing about technology or finance. The 70-year-old CEO said his biggest challenge was coping with Huawei’s fast growth, and gave a graphic illustration of his demanding management style.