Huawei founder Ren Zhengfei said to survive as the main agenda of Huawei

In the morning of August 23, the first financial reporter learned from multiple sources that Huawei’s internal forum on the afternoon of the 22nd went online with an article about “the entire company’s business policy to shift from the pursuit of scale to the pursuit of profit and cash flow”Ren Zhengfei, founder of Huawei, mentioned within the article that the global economy will face a recession and a decline in consumption power, and that Huawei should change its thinking and business policy from pursuing scale to pursuing profit and cash flow to ensure that it can tide over the crisis in the next three years.

On the afternoon of August 12 this year, Huawei’s official website went online in a low-key manner with Huawei’s operating results for the first half of 2022. The data shows that Huawei achieved sales revenue of RMB 301.6 billion in the first half of this year, with a net profit margin of 5.0%. Among them, the operator business revenue was RMB 142.7 billion, enterprise business revenue was RMB 54.7 billion, and terminal business revenue was RMB 101.3 billion.

In the first half of last year, Huawei’s carrier business revenue was RMB 136.9 billion, enterprise business revenue was RMB 42.9 billion, and consumer business revenue was RMB 135.7 billion. Looking at the figures of the three main businesses, Huawei’s carrier and enterprise revenues grew by 4% and 27% respectively, but the terminal business declined by 25%.

Huawei’s market share in the $400+ price segment declines from 13% in 2020 to 6% in 2021, according to market research firm Counterpoint Research. Although Huawei still maintains its global third ranking, its sales share has been significantly squeezed by Apple and Samsung, mainly due to the loss of market share caused by the limited 5G capabilities of Huawei’s phones.

Brief comment: In the face of international technology-related sanctions, Huawei’s share of the international market has not only plummeted, but now it has reached the goal of just surviving. This state-owned enterprise, which the Chinese Communist Party boasts of being proud of, is simply unbeatable.