Huawei’s five key strategies for the future

At the 18th Global Analyst Conference, Huawei’s vice chairman and rotating chairman Xu Zhijun shared the operation of Huawei in 2020 and elaborated on Huawei’s five key strategic measures in the future. Xu Zhijun shared the performance of Huawei in 2020 on the spot.

In 2020, sales revenue was 891.4 billion yuan, a year-on-year increase of 3.8%, and net profit was 64.6 billion yuan, a year-on-year increase of 3.2%.

He said: “The performance in 2020 is basically in line with our expectations. Because Huawei has adopted a large-scale reserve strategy, the cash flow from operating activities in 2020 will be 35.2 billion yuan, but this is also what we expect.”

According to his statement, 2021 will continue to be a year full of challenges for Huawei, as well as a year of gradual clarity of strategy. After responding to US sanctions last year, there will be time this year to discuss how to go out.

Specifically, Huawei will focus on five areas. The first is to optimize the industrial mix and enhance the resilience of the industrial mix. For example, Huawei will mainly focus on improving software capabilities.

It is understood that two years ago, Huawei decided to invest 2 billion US dollars to invest in Huawei’s software engineering capabilities. After two years of investment, Huawei has improved in software. In the future, it will continue to improve software capabilities and reduce reliance on chips.

“Everyone has also seen our recent continuous adjustments to the cloud BU. We believe that the core of the cloud is software. In the future, we must strengthen the software organization and not have too much involvement with the hardware to achieve the growth of the software industry.” Xu Zhijun said.

In addition, Huawei will continue to increase investment in smart car software to realize the intelligence, automation, and electrification of the automotive industry. Xu Zhijun said that Huawei is to help companies build good cars, and Yu Chengdong has been busy helping companies sell good cars recently.

The second is to redefine 5.5G and lead the continuous evolution of 5G; the third is to focus on users and continue to create a seamless experience in all scenarios, based on Hongmeng OS, and continue to serve the two ecosystems of hardware and software.

Xu Zhijun said that Hongmeng OS is a full-scene distributed system, and it is currently expected that more than 40 mainstream brands will be equipped with Hongmeng OS in 2021.

The fourth is to help all walks of life reduce personnel consumption and realize a low-carbon society. The last one is to work hard to solve supply continuity.

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