On the afternoon of March 31, Huawei released its financial report, achieving global sales revenue of 642.3 billion yuan, a year-on-year increase of 0.9%, similar to the situation of other technology giants.
Net profit was RMB35.6 billion, down 68.7% year-on-year. Compared with other giants, the effect of cost reduction and efficiency increase is not prominent. Last year, Ren Zhengfei's statement that "the cold breath is transmitted to everyone" was indeed prescient.
However, its R&D investment reached a staggering 161.5 billion yuan, accounting for 25.1% of the annual revenue, the highest in history, and the cumulative investment in R&D expenditure in ten years exceeded 977.3 billion yuan, just one step away from trillions. True. Technology driven, well deserved.
At the same time, Ren Zhengfei reiterated that Huawei will resolutely not build cars within 5 years, and will only do "divine assistance" to improve the "silicon content" of automobiles.
The concurrency of the two pieces of information is to give Huawei a firm "personality" to the market, or a technology-oriented, appropriate technology solution provider.
1. Do not make cars
The car building competition is setting off a price war, Tesla, Wei Xiaoli is red, traditional car companies are also joining this red sea, at this time Huawei personally down, high investment, high risk, low return, long cycle, for the current profit decline, the cold is flourishing Huawei, especially not counted.
And once Huawei builds a car, many car manufacturers in the past may abandon their on-board radar, intelligent cockpit and other services, and cannot use their own money to feed competitors, which is a truth that everyone understands.
What's more, now, Huawei has difficulties as an automotive solution provider - the chairman of a large car group said: Huawei has become the "soul" of the car, and we only have the "body". This is unacceptable to us, and this soul must be in our own hands.
At this time, it was also announced that the construction of cars would only make the already difficult automobile business more difficult, and the hanging bottle was energized - numb.
2. What to focus on?
At present, the terminal business that has been severely sanctioned, the revenue of the terminal business has decreased by 11.8% year-on-year. Two years have evaporated 1/4, obviously the future still depends on operators, cloud computing and other B2B services, is the most realistic choice.
Its advantage is not only in the technical foundation, but also in the depth of understanding of the industry. For example, when encountering large customers, a company with dozens or even hundreds of people will be specially established, and the job is to clearly understand the customer's upper and lower structure and business situation, and each project link has mature play guidance.
In addition, Huawei has established a system to keep profits for technology partners (software and hardware service providers, consultants, etc.) and let them grow together in HUAWEI CLOUD business.
But overall is still the old saying, the market is not merciless, only the strong can conquer, Huawei wants to live, "cold breath transmitted to everyone" is just the beginning, find a way to kill a blood road in a more and more restricted and more rigid market, is Huawei's only way out.
There is no ultimate success, no fatal failure, precious is the courage to keep going. Prime Minister Churchill's words may be more suitable for today's Huawei.