In the past year, Huawei's mobile phone business suffered heavy losses due to the suppression of the United States, and its annual revenue fell sharply by 28.9%, from 891.4 billion yuan to 634 billion yuan. However, it is understood that Huawei's operator business is still relatively stable, and this is Huawei's starting communication business.
As early as the 4G era, Huawei surpassed giants such as Ericsson and Nokia to become the world's largest supplier of communication equipment. In the 5G era, Huawei has taken the lead and mastered the right to speak. The United States also wants to suppress Huawei's business, but most of Huawei is independent technology, and its dependence on American technology is very low.
Therefore, the United States has used the existence of "security issues" as an excuse and through pressure to let other countries not use Huawei's 5G to carry out the "go to Huawei" plan.
However, more than 2 years later, Huawei is still strong, surpassing rivals such as Ericsson, Nokia, and Samsung, and ranking the world's largest communication equipment manufacturer with a market share of 26%. It is understood that Huawei has signed more than 3,000 commercial contracts for 5G industry applications. There is no doubt that many countries do not believe the words of the United States.
The U.S.-Uk "Go to Huawei" program is slow
In the 4G era, the United States is wary of Huawei and has not given any orders. It is only in some township markets in the United States that due to the high cost, Ericsson and others are unwilling to do it, so they handed it over to Huawei. After entering the 5G era, the United States wants to completely remove Huawei and requires that Huawei communication equipment in the countryside be dismantled.
Who knows the progress was slow, until the United States released $1.9 billion in subsidies to start implementing. However, the performance of the newly built 5G base stations in the United States is far inferior to Huawei's 5G, and operators are bluntly saying that it is difficult to recover costs.
The reason why Huawei can seize the European market is because Huawei's equipment and technology are more cost-effective than Ericsson and Nokia. It is understood that compared with major competitors, Huawei's cost of communication equipment is about 20%-40% lower.
Most countries in Europe have small populations and scattered residences, so the construction cost will be relatively high, and the offers of giants such as Ericsson and Nokia will be much higher than Huawei.
As a follower of the United States, the United Kingdom announced as early as 2020 to ban Huawei 5G, and also to dismantle the previous Huawei equipment, formulated by January 2023, so that the proportion of Huawei equipment used in the UK 5G will be reduced to 35%, but this plan has been postponed for another six months. It is understood that it will not be completely removed until 2027.
To dismantle Huawei's communication equipment, it will take time and money. Removing Huawei altogether costs more than $2 billion.
Obviously, Huawei not only has good technology, but also has a low price, but the United Kingdom and the United States do not use it. Now I want to demolish it, and the progress is very slow, a bit of a fish.
Huawei began to fight back, demanding up to 20.3 billion yuan in compensation
So far, the United Kingdom and the United States have not come up with real evidence for the security problems of Huawei's 5G. British executives also admitted that even sending "undercover agents" to Huawei did not find any "security issues". However, due to the large number of followers in the United States, many countries still ban Huawei.
The European country of Sweden banned Huawei's 5G without any evidence, so Huawei began to fight back, filing a complaint with the World Bank's International Investment Dispute Resolution Center (ISCID), saying that Sweden's move violated trade fairness and Huawei was treated unfairly, resulting in a claim of $2.7-3.2 billion, or up to 20.3 billion yuan.
In addition, although the United States has banned Huawei 5G, the US operator Verizon has secretly used Huawei's 5G patents, which is really a bit shameless. I didn't want to cooperate, but I coveted the technology and stole it. Huawei also did not swallow its anger, but demanded 7 billion yuan in patent fees.
Huawei should indeed be tough and not have illusions about the United States and other countries, because they will not change their minds, and they only want to suppress or even crush. Huawei is already the first in the market in 5G patents, which are Huawei's advantages and confidence, and there is no need to worry at all.
Won 2 more 5G orders
The blockade of the United States has not stopped Huawei's progress, but has won the most 5G orders. Many countries also know that the so-called "security problem" is an excuse to suppress it. Who will not get along with the best technology, the most economical 5G equipment suppliers? After all, if you save money and get a better 5G network, why not?
Just on March 4, Huawei won two more 5G orders. Turkey announced its cooperation with Huawei and signed a memorandum of understanding (agreement) on 5G, followed by the Brazilian operator TIM, which also chose Huawei as a partner, and signed a 5GCity agreement.
Huawei's leading position in 5G once again proves the importance of autonomous technology. If the mainland has taken the lead in chip manufacturing, then Huawei mobile phones will not fall into this situation. All enterprises should learn from Huawei, abandon the "comprador" mentality, and invest heavily in technology research and development. Over-reliance on foreign technology is always at risk of getting stuck in the neck.
Even so difficult, Huawei still invested 124 billion yuan in research and development funds in 2021, ranking fifth in the world. Huawei's death in high-end technology has led to today's leading position in 5G technology. A technology powerhouse, more Huawei needs to appear.