What happened to Huawei, which has been sanctioned by the United States for many years, now?
According to the 2021 annual report released by Huawei not long ago, Huawei achieved sales revenue of 636.8 billion yuan last year, although this figure decreased by 28.6% year-on-year, but the company's net profit increased by 75.9% to 113.7 billion yuan.
What does this mean?
It shows that the impact of the US crackdown is indeed very large, and the scale of revenue has shrunk, but the company seems to be more profitable. When Biden hears the news, will he be more demented?
Taking Huawei's smartphone business as an example, because of the sanctions, Kirin chips can only use inventory, in order to continue to dun, smart phones can only be limited to listing, resulting in this piece of operating income almost halved.
The operator business on which the company started has also declined to a certain extent due to sanctions and limited industry growth.
Huawei's two pillar industries declined, but the company's business has grown, and more importantly, the company's profitability and cash flow acquisition ability have been improved.
Compared with the friend ZTE in the same city, ZTE was seriously injured after being hit by US sanctions, Huawei seems to have trained a "dipped clothes eighteen falls", the company's operation has not been affected in the slightest, just imagine if there is no US sanctions, its revenue last year will not exceed trillion yuan?
Why is Huawei so aggressive?
Perhaps this is related to its corporate culture, as we all know, Huawei's corporate culture is wolf culture, this culture, not only cruel to opponents, but also to themselves, so it has cultivated a strong ability to survive.
First, the cruelty to the opponent: you have the "floor" price, I have the "hell" price
Huawei often says, "We have no way out, the only way out is victory."
In the face of such a Huawei, any opponent must be snuggled and unable to sleep; competitors do not need to provoke Huawei, otherwise they will be almost crazy.
In the communication equipment market and the terminal market, the most common means of competition between enterprises is price war, not only the "floor" price of zero profit, but even the "hell" price of loss, so that the opponent is invincible.
In 2005, ZTE successfully won a contract for the construction of a 1 million-line GSM network in The Nepalese market, Huawei's sphere of influence. This was the largest order in Nepal's communications industry at the time.
Huawei was extremely dissatisfied with this and once reported ZTE to the Commercial Office of the Chinese Embassy in Nepal.
Because in this tender, Huawei's offer is $12 million, while ZTE's price is $3.9 million,
Huawei believes that ZTE is bidding below the cost price and is suspected of unfair competition.
However, ZTE explained that there are long-term and short-term differences in the commercial price strategy in the bidding, and it is not based on Huawei to judge that ZTE's pricing is lower than the cost without knowing the networking plan and market strategy.
Three years later, at the China Telecom CDMA tender, ZTE encountered a blow from Huawei.
It is understood that at that time, China Telecom's bidding budget was about 10 billion yuan, and ZTE's quotation was 7 billion to 8 billion yuan.
And Huawei? The price that shocked the industry was quoted - 690 million yuan!
According to media estimates, according to the gross profit margin of 40-50%, Huawei will lose 5 billion yuan.
Huawei's approach once triggered a debate in the industry that "competition for profit or morality" has been raised. Although ZTE still got the largest share of the industry's order in the end, Huawei grabbed a piece of cake from ZTE through low quotations.
In addition to ZTE, UTStarcom, a PHS manufacturer that was once popular in the 21st century, was also hit hard for "provoking" Huawei.
PHS is actually a high-power version of cordless telephones, using the line of a landline telephone, but because it is a one-way charge, it is much cheaper than a mobile phone, so it was very marketable at that time.
However, Ren Zhengfei believes that PHS technology is a backward technology that will soon be eliminated, and only 3G technology represents the future.
Huawei did not launch the PHS project and missed phS's huge profits in China.
UTStarcom and ZTE, which came later, became the suppliers of China Telecom PHS, in fact, the suppliers did not need to develop and produce their own, they only needed to buy PHS machines from Kyocera of Japan, and then label their own trademarks.
UTStarcom sells PHS, makes money to earn hand cramps, and wants to expand its business, intending to bundle and sell softswitch, optical networks and wireless products based on PHS's high profits, which is undoubtedly competing with Huawei.
Originally Huawei saw ZTE making money on PHS, nest a belly fire, UTStarcom this trouble, Ren Zhengfei immediately made a decision, invested two hundred million, engaged in PHS!
Anyway, it is only an OEM, no need for any other research and development and material investment, plus the operation channel is originally Huawei's superior resource, which has more say than UTStarcom.
It is said that Ren Zhengfei has only one requirement for the PHS business department, and it is not allowed to make high profits or lose money. In November 2003, Huawei launched its own PHS, and promised the operator that the PHS was broken and replaced, and at the time of shipment, according to the damage rate, an additional number of mobile phones were given to the operator.
With the listing of Huawei's PHS, UTStarcom's good days have come to an end. In 2003, its net profit was as high as $200 million, plummeted to $70 million in 2004, and by 2005 and 2006 it was in the red, losing $487 million and $482 million, respectively.
Second, be cruel to yourself: women should be used as men, and men should be used as warriors
For Huawei, its most valuable asset is talent.
In the introduction and use of talents, Huawei's best trick is to throw money!
It is as if there is no problem in the world that cannot be solved with money, and if it is not solved, it will continue to throw money.
On April 25, Huawei launched a new round of "Genius Youth" recruitment program to recruit talents with special achievements in science and engineering related fields and aspire to become technology leaders around the world.
Huawei can give talented teenagers, in addition to the big bull mentor, global platform and resources, there are 5+ times the salary.
According to media reports, Huawei's annual salary for talented teenagers is basically one million yuan, and the highest is more than 2 million yuan.
Huawei has been quite ruthless in "starting" with talents since the establishment of the company.
One of its early executives wrote a book after leaving office, in which he revealed that he left school in 1993 to Huawei, and the salary in the school was more than 400 yuan, while when he arrived at Huawei, he started with 1500 yuan, and gave half a month's salary after only one day shift that month.
The executive's salary rose to 2600 yuan the next month, and then every month, and by the time he left 8 years later, his net worth had exceeded 10 million yuan.
Who doesn't love such a Huawei?
However, there is no free lunch in the world, and the benefits are often proportional to the payment.
Being able to enter huawei means getting a high income and a gorgeous identity, but to get this income and ensure this job, you have to pay more than ordinary people's efforts.
A former Huawei HR said that Huawei has a point of view in the use of talent, that is, to give employees 3,000 blocks, perhaps only 30% of the ability, and if you give 5,000, it may play 100%, or even 120%.
Huawei employees not only have high annual salaries, but also company stock options, which is also where Huawei is attractive to talents. Employees at Huawei are not working for Ren Zhengfei, but for their own future.
Therefore, in the early days of Huawei, salespeople can wait for a customer, waiting for more than 8 hours in the cold wind;
In places where African birds do not lay eggs, the only entertainment is to pick chickens in the yard, and finally run the chickens alive to exhaustion;
Also in Africa, huawei has to face gunfire and disease threats; (For a time, Huawei is said to have set up a "malaria award" for employees who got malaria in Africa.) ）
In the developed market in Europe, in order to be able to enter the supplier system, we can provide customers with free product experience;
……
So all this, the outside world believes that Huawei is squeezing employees, so why are Huawei's employees willing, and the team is getting bigger and bigger, more than 200,000 people last year?
It can only be said that at present, in China's manufacturing industry, only Huawei can and dare to use employees in this way, give employees high salaries, and pay shares (if they leave, they can really cash in).
Entering the hometown of Nengjin, retreating can be food and clothing worry-free, employees have no shackles in life, and they can naturally devote themselves to fighting on the front line, so don't worry about Huawei's cruelty to their own people, that is Zhou Yu beating Huang Gai - one willing to fight, one willing to be beaten.