Huawei's internal personnel turmoil
Huawei has recently undergone major personnel changes, Yu Chengdong will step down as CEO of Huawei's device business and become chairman of the terminal business, and He Gang, the former chief operating officer, will take over as the new CEO. This realignment is considered a normal management appointment and is intended to allow Yu to focus on overall strategy development and emerging business areas.
Yu Chengdong has led Huawei's consumer business unit since 2012, and under his leadership, Huawei has grown from a small brand to a major global smartphone supplier. Known for his slogan "Far ahead", he has repeatedly publicly declared that Huawei's phones will be far ahead of competitors such as Apple and Samsung. In recent years, Huawei's mobile phone performance in the international market has been suppressed by the US government, and it has been placed on the entity list and cannot access Google mobile services. Despite this, in the domestic market, Huawei mobile phones still maintain a strong performance.
Yu Chengdong stepped down as CEO of the terminal
It has been pointed out that Yu Chengdong's previous promotional slogan of "far ahead", as well as the safety questions of Huawei's smart car brand Wenjie M7, may be one of the reasons for this adjustment. Last year, Yu Chengdong hyped up "far ahead" at the new product launch conference, which aroused doubts in the industry. Huawei's smart car brand Wenjie M7 has also received widespread attention and criticism due to potential safety hazards.
Ren Zhengfei said in an internal letter that the adjustment is so that Yu Chengdong can focus on overall strategy development and emerging business areas, such as smart cars. Yu Chengdong will continue to serve as the chairman of the intelligent vehicle solution BU and the director of the IRB of intelligent terminals and intelligent automotive components.
According to industry insiders, the adjustment aims to optimize the management structure and inject new vitality into Huawei's future development. Yu Chengdong has long focused on the mobile phone business, and this adjustment will help him devote his energy to emerging fields and open up space for the younger generation of managers.
He Gang took over as the new CEO
Yu Chengdong was replaced by He Gang, the former chief operating officer of Huawei's terminal BG. He Gang has been working at Huawei for nearly 20 years and has been engaged in terminal product and operation management for a long time, and is regarded as Yu Chengdong's right-hand man. It is believed that He Gang's assumption of the post of CEO will help maintain the continuity and stability of Huawei's terminal business.
He Gang's challenges are no small. In the domestic market, although Huawei's mobile phones are still performing strongly, they are also facing fierce competition from Xiaomi, OPPO, vivo and other manufacturers. In the international market, Huawei mobile phones are facing greater difficulties, not only unable to access Google mobile services, but also under pressure from the US government.
Reason for adjustment
"Far ahead" slogan
Yu Chengdong's propaganda slogan of "far ahead" is considered to be one of the important reasons for this adjustment. Last year, Yu Chengdong hyped up "far ahead" at the new product launch conference, which aroused doubts in the industry. It has been pointed out that this kind of overconfident slogan may not only arouse consumer disgust, but also stimulate the morale of competitors.
In the smartphone sector, manufacturers such as Apple and Samsung have been strong competitors to Huawei's phones. Although Huawei phones occupy a leading position in the domestic market, in the global market, the gap between them and Apple and Samsung is not obvious. The slogan "Far ahead" is considered a form of overconfidence and ostentation, which is not in line with Huawei's usual low-key and pragmatic style.
Ask the M7 security question
Another reason that may lead to this adjustment is that Huawei's smart car brand Wenjie M7 has been questioned for safety. Last year, there were media reports that the M7 had safety risks and could get out of control under certain circumstances. The report sparked widespread concern and criticism.
As a smart car brand under Huawei, the security issues of the M7 will undoubtedly have a negative impact on Huawei's brand image. Some believe that this may also be one of the reasons why Ren Zhengfei decided to adjust Yu Chengdong's position to reduce his influence in the auto business.
There is also a view that the security doubts of the M7 may be just the fuse, and the real reason is that Huawei needs to optimize the management structure to inject new vitality into future development. This incident highlights the need for Huawei to strengthen management and control in emerging business areas.
Industry impact
Huawei's mobile phone domestic market is strong
Despite the personnel turmoil, Huawei's mobile phone performance in the domestic market remains strong. According to the statistics of Fang Data Agency, in the quarter of 2023, Huawei's mobile phone shipments in the domestic market accounted for 42%, far ahead of other brands.
This is mainly due to the fact that Huawei mobile phones have been deeply cultivated in the domestic market for many years and have established strong channel advantages and brand influence. Huawei's technical advantages in photography, aviation and other aspects have also attracted the favor of a large number of domestic consumers.
Huawei's mobile phones are also facing fierce competition from Xiaomi, OPPO, vivo and other manufacturers in the domestic market. These manufacturers occupy a certain share in the low-end market, and their performance in online channels is outstanding, which has brought certain pressure to Huawei's mobile phones.
Competitors such as MediaTek are not afraid of threats
In the field of chips, MediaTek and other manufacturers have performed well in the Chinese market with their strong camera capabilities, and they are not even afraid of the threat of Huawei. MediaTek's flagship chip, Dimensity 9200, launched last year, has been favored by many mobile phone manufacturers for its outstanding performance in photography and gaming.
In addition to MediaTek, chip manufacturers such as Qualcomm and Samsung are also increasing their investment in the Chinese market. They are not only innovating in technology, but also working hard in marketing and channel building to try to get a piece of the pie.
For Huawei, chip shortcomings have always been a pain point in its mobile phone business. Due to the sanctions imposed by the U.S. government, Huawei cannot obtain chips from American manufacturers such as Qualcomm, and can only rely on self-developed Kirin chips. While the Kirin chip performs well, it still lags behind its competitors when it comes to camera and gaming performance.
It is expected to cause industry shocks
This personnel turmoil within Huawei is expected to affect the pattern of the entire mobile phone industry to a certain extent. As one of the world's largest mobile phone manufacturers, any change in Huawei could trigger industry shocks.
On the one hand, Yu Chengdong's departure may have a certain impact on the operation of Huawei's mobile phone business. Although the new CEO, He Gang, is Yu's right-hand man, he needs a process to take full control of the business. During this period, Huawei mobile phones may slow down in some areas.
On the other hand, other mobile phone manufacturers may take the opportunity to increase their offensive against Huawei. Domestic manufacturers such as Xiaomi, OPPO, and vivo may increase their investment in online channels in an attempt to eat Huawei's market share. International manufacturers such as Apple and Samsung may increase their marketing efforts in the Chinese market and seek breakthroughs.
Huawei's internal personnel turmoil will bring some uncertainty to the entire mobile phone industry, but it may also give rise to new opportunities and changes. As an industry leader, Huawei's changes will inevitably trigger shocks and restructurings across the entire industry chain.
Huawei's internal personnel turmoil, especially Yu Chengdong's resignation as terminal CEO, will have a profound impact on the company and the entire mobile phone industry. The reasons for this change may include Yu Chengdong's slogan of "far ahead" and the safety of Huawei's smart car brand Wenjie M7, but more importantly, the need to optimize the management structure and inject new vitality.
In the domestic market, although Huawei's mobile phones are still performing strongly, they are also facing fierce competition from Xiaomi, OPPO, vivo and other manufacturers. In the international market, Huawei mobile phones are facing greater difficulties, not only unable to access Google mobile services, but also under pressure from the US government.
MediaTek and other chip manufacturers have performed well in the Chinese market, which has put some pressure on Huawei. The entire industry landscape is changing, and the personnel turmoil within Huawei will undoubtedly exacerbate this trend.
Huawei needs to invest more in emerging areas such as smart cars, while maintaining the steady development of its mobile phone business. The new CEO, He Gang, will not only inherit Yu Chengdong's successful experience, but also lead Huawei to open up new tracks.