China News Service, Beijing, March 31st, title: Huawei responds to hot issues: it is related to chips, mobile phones, supply chains, car manufacturing, etc.
China News Agency reporter Liu Yuying
On March 31, Huawei released its 2020 annual report. Hu Houkun, Huawei's rotating chairman, answered hot issues such as chips, mobile phones, supply chains, and car manufacturing at the press conference.
What is the impact of US sanctions?
Since 2018, the United States has imposed multiple rounds of sanctions and suppression on Huawei.
Huawei will continue to maintain performance growth in 2020.
Among them, sales revenue was 891.4 billion yuan, a year-on-year increase of 3.8%; net profit was 64.6 billion yuan, a year-on-year increase of 3.2%.
How much will these sanctions affect?
Hu Houkun said that from the experience of the past two years, Huawei, as a multinational company, is highly dependent on the global supply chain, which has been destroyed under geopolitical conflicts.
This also slowed down Huawei's performance growth.
But Huawei was not the only one who suffered.
"Huawei purchases between US$10 billion and US$20 billion from US suppliers each year. Under the impact, they are also victims. Although there will be manufacturers to make up for Huawei’s vacancies, a large part of the orders are supplied by other places. The merchant took it away," Hu Houkun said.
"Consumers have also suffered losses, and there is no winner in the industry," Hu Houkun said. "If a political decision eventually damages different links in the entire industry chain, shouldn't it be corrected in time?"
Can I still buy new Huawei phones?
In 2020, Huawei released two series of flagship mobile phones, P40 and Mate40 equipped with Kirin chips, using the reserved chips.
In early 2021, Huawei released a new generation of folding screen mobile phone Huawei MateX2, showing to the market that Huawei has not given up on mobile phones.
In the fourth quarter of 2020, due to supply, Huawei's mobile phone shipments dropped sharply.
The market believes that although Huawei's mobile phones will be difficult in 2020, as the inventory decreases, 2021 will encounter real challenges.
Hu Houkun said that the current supply situation is still not clear, and it is difficult to predict the next changes in the mobile phone business.
However, the flagship models that are planned to be launched every year will still be launched as planned.
In the next few years, it is believed that Huawei mobile phones can maintain its market leader status.
Does Huawei want to make a chip?
Earlier there was news that Huawei would enter chip manufacturing.
Hu Houkun emphasized that Huawei is positioned as a supplier of IT system equipment and is still very dependent on chips, especially the entire global chip industry chain.
"Huawei’s HiSilicon has strong design capabilities, but it is precisely as an important unit of Huawei that participates in the cooperation model of the global semiconductor industry chain. This type of industry chain based on the global cooperation model should still become the semiconductor industry. "Mainstream development", Hu Houkun said, under this understanding, Huawei will insist on innovation based on open cooperation, and hopes that governments of all countries will help restore the industrial chain and strengthen global cooperation.
Does Huawei build cars?
At present, as the electrification and digital transformation of automobiles have reached a key node, technology companies have "stopped" to build cars.
Huawei also launched Huawei's smart car solution.
"Our position as a supplier of smart auto parts has not changed. This is very clear." Hu Houkun said that he believes that Huawei can compete in several key basic sub-fields of smart electric vehicles in the future through the IT technology it has mastered. Powerful products, such as Internet of Vehicles, Vehicle Cloud, Smart Cockpit, Autonomous Driving, Power Management, etc.
Does Huawei want to raise pigs?
Huawei previously launched a smart pig raising solution.
As other technology companies are involved in the pig industry, there are also rumors that Huawei will enter the pig industry.
"None of this is true", Hu Houkun responded that Huawei's business direction is still focused on ICT infrastructure, based on the two fields of connectivity and computing, and is committed to playing the role of an enabler of social digital transformation. Huawei's strategic direction is not change.
Another focus is on consumer experience, creating a full-scenario intelligent experience. Hu Houkun said that these are Huawei's two business focus directions.
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