Huawei
As the world's largest manufacturer of 5G communication equipment, Huawei is extremely competitive in both quality and price. Therefore, although it has not officially entered the US market, there are still individuals or enterprises in some remote rural areas who use Huawei's equipment. The price of this part of the equipment is not high, a total of about 700 million US dollars.
First, in 2019, the Federal Communications Commission (FCC) decided to replace the $700 million equipment for security reasons, and the original scheduled replacement cost was calculated according to the $700 million at the time of construction. However, when the actual tender was ready to be implemented, it was found that $700 million was not enough, so in order to continue the implementation of the decree, the subsidy was increased to 1 billion.
It is expected to replace Huawei equipment for $1.9 billion
But as the formal replacement begins in 2021, the $1 billion proposal was opposed by operators on the grounds that it would cost to dismantle it, and then rearrange the new network equipment at the same cost, adding up to just $1 billion. In order to continue the demolition plan, the US Congress gritted its teeth and increased the subsidy from $1 billion to $1.9 billion – this time to double you, right?
The final cost soared to $5.6 billion
But by the time the 2022 filing process is over to submit final cost estimates, the FCC and The State will see the final figures and their jaws dropped — Nokia and Ericsson's final offer is $5.6 billion. From 700 million to 5.6 billion, a full difference of 8 times, what kind of equipment requires such a high price.
When the FCC asked Nokia and Ericsson why the price was so high compared to Huawei, they used the fact that their devices had more features and were more secure, and said that the price of $5.6 billion was already very favorable.
Huawei communication equipment
At this time, the replacement of Huawei equipment is also deadlocked, after all, 5.6 billion US dollars is not a small amount, such as Xiaomi's net profit in 2021 is only 2.5 billion US dollars, so who will pay for the 5.6 billion equipment demolition costs has also become the focus of all parties. At the same time, when to dismantle, how long to dismantle, how long to build new equipment has also become a problem that has to be considered.
Global communications equipment manufacturer market share
The $5.6 billion offer also shows why Western tech companies are so terrified of the rise of domestic companies such as Huawei. In the past, Western technology companies relied on technological leadership to obtain high profits, which can be said to be reprehensible, because it is indeed making money by ability.
But when domestic technology companies led by Huawei began to rise and compete in the global field, many technology giants, including Nokia and Ericsson, found it difficult to defeat Huawei with normal means. Therefore, many measures, including supply cuts and equipment blockades, have been adopted to prevent the products of domestic technology companies from participating in global competition, thereby maintaining high profits.
Huawei
In fact, the Huawei incident is just the beginning, with the progress and development of domestic science and technology, more and more companies will inevitably begin to catch up or even surpass, the consequence is that domestic revenue gradually rises, while Western income gradually declines. After all, the global market is only so large, and when new competitors emerge, it means that there are former rulers who have declined.
Today, Huawei's average annual salary is 700,000 yuan, Google's average annual salary is 1.98 million yuan, Facebook's average annual salary is 1.96 million yuan, Twitter's average annual salary is 1.56 million yuan, Nvidia's average annual salary is 1.46 million yuan, and Microsoft's average annual salary is 1.18 million yuan... From the perspective of salary, domestic technology companies still have a long way to go.
Ren
Huawei's founder's decision to attract talent at all costs, and even the average salary of 700,000, has caused many doubts, but now Ren's vision is still excellent. 700,000 annual salary in China is indeed a high salary, but Huawei is a company that aims to compete in the world, although there is still a distance from the top Google in terms of salary, but Huawei can already be said to be the ceiling of the domestic technology industry. It is precisely because of the attraction of talents that Huawei can get more technical reserves and eventually participate in global competition.
Huawei
Huawei is strong, but we can't have just one Huawei. Only when more companies rise to challenge traditional tech giants and seize their market share can they provide more high-paying jobs. When more and more companies can provide 700,000 annual salaries, it is also a happy thing for ordinary people.