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Huawei warns that things will get worse

by on31 December 2021

Uncertain business environment

Troubled Huawei Technologies is worried about "serious challenges" in 2022, amidst an uncertain business environment, "politicisation of technology", and further "deglobalisation."

The Chinese tech vendor is expecting to close the year with $99.45 billion in revenue, a 28.88 per cent dip from 2020.

Its carrier business had stayed "stable" and its enterprise unit saw growth, said Huawei's rotating chairman Guo Ping, in his new year message Friday to employees.

He added that digital transformation in global economies had become a major growth engine and there were new opportunities in green and low-carbon technologies, but warned of uncertainties in the year ahead,

Chinese tech giant is looking to its other connected devices including laptops and smart TVs to fill the gaps lost when the US shut down its smartphone business. It believes its wide product portfolio will stand in good stead against its cloud peers such as Alibaba and Tencent.

"An unpredictable business environment, the politicisation of technology, and a growing deglobalisation movement all present serious challenges," Guo said.

 "Against this backdrop, we need to stick to our strategy and respond rationally to external forces that are beyond our control."

Huawei would push ahead with its focus on infrastructure and smart devices, and look to respond more quickly to customer needs with shorter "management chains".  This meant creating "integrated teams" and "domain-specific subsidiaries", he said.

Specifically, Huawei in 2022 would look to streamline its business decision-making processes by giving more autonomy to local offices. This would see these outfits assuming the authority to make certain decisions previously held by its Shenzhen headquarters.

Further tweaks to its organisational structures could see business integration across its local offices worldwide. Huawei has business operations in more than 170 markets, including 14 offices in the Asia-Pacific region outside of China.

The main objective of its organisation-wide transformation efforts was to enhance operational efficiencies and customer service delivery, Guo said.

Huawei would increase its investment in HarmonyOS and EulerOS, but Guo gave no details on what these entailed.

EulerOS is pitched as Huawei's infrastructure platform that supports both on-premises and cloud computing services. It runs on Huawei's version of Linux OS.

HarmonyOS currently supports more than 220 million Huawei devices and there are more than 100 million devices developed by third-party vendors that currently run on HarmonyOS, according to Huawei.


Last modified on 31 December 2021
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