Huawei Technologies Co. has suffered much from various bans and sanctions imposed on the company by the US. It has completely lost its smartphone market and fallen from its ultimate height. However, the company has learned from years of suffering and has now gained strength enough and is now ready to pay more for talent, aiming to lead the race in next-generation telecom technologies after 5G.
This latest statement came from the company’s founder and Chief Executive Officer Ren Zhengfei when he was having an internal discussion last month. The founder also dismissed the notion that the U.S. blacklist has defeated the Chinese telecommunications giant. “There has been no chaos within the company. Instead, the company is now more united than ever, and has even attracted more talent.”
However, looking at Huawei’s recent financial results one can only say that despite having a positive attitude, the company is pretty much struggling. The Shenzhen-based company has posted a 38% decline in sales in the second quarter, which is also the company’s sharpest revenue drop since Washington cut it off from key chipsets and American technologies from semiconductor design tools to Google’s latest Android system for smartphones.
In July however, the company managed to secure a major 5G equipment procurement deal from a top Chinese telecom operator suggesting that the company, despite many sanctions and setbacks is still strong in its core telecom gear business.
It also released a marquee smartphone but failed to arm it with fifth-generation, or 5G, capabilities due to lack of chip supply. It has since then been trying to find a new source of profit to maintain operations and is seeking to create new businesses in smart mining and electronic vehicles.
In its effort to stay afloat the company has even sold its smartphone brand, Honor, to a Chinese consortium last year for an unspecified amount. However, the founder of the company puts his faith in the company’s research team to help Huawei recover from what may be the strongest sanctions the U.S. has ever placed on a single company.
“Built on this R&D system, we will not only lead the world in 5G, more importantly, but we will also aim to lead the world in wider domains.”