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  • Sahriar Shuvo - Tech Journalist

Huawei released the 2020 Annual Report. Rotating Chairman Ken Hu declared a surge in business

Until 2020, Huawei had a rough slack in business. The Trump administration blocked Huawei’s efforts of regular business in the smartphone market. It was resulting in the company losing shares in the European markets. As a sum of the outcome, Huawei failed to land any significant 5G carriers after the company promoted the new “HarmonyOS”, a native and intelligent operating system for their platform.

2020 Annual Report Briefing

Deputy & Rotating Chairman Mr Hu Houkun (Ken Hu) declared the business year a success. Even after failing periods of landing clients and potentially losing some business. It was held on 31st March, this year. “We are always obligated to demonstrate our true and authentic business results,” said Ken Hu.

After the US-led sanctions arrived on Huawei’s corridor, things were not looking good for them. Many businesses fell or lost the steadiness after that kind of event. But we saw a different story from their side. The company was solely dependent on its domestic customers. As the pandemic hit, even they had nothing else to conquer but to take in the fact that the business needs to survive. From 2016 to 2020, the report says, Huawei raised from ¥521.6 billion to ¥891.4 billion in these five years. It was within ¥603.6 billion in 2017 and ¥721.2 billion in 2018 margin respectively. But from 2019 at ¥858.8 billion, we can find no major surge here. While it’s not bad, it’s not the best-case scenario for a large enterprise like them. Instead, we can confidently say, Huawei’s business model kept it afloat for the years after taking all the hits.

Huawei manufactures smartphones and smartwatch, TV, network and storage appliances, security software’s like firewall, routers, servers, a wide variety of computer electronics, and much more.

The annual report says the ‘1+8+N’ business strategy drove the company. Here the one goes for the smartphone category, while eight refers to appliances like glasses, watch, headphones, TV, audio etc. The “N” refers to smartphones, mobile offices, visual entertainment systems and a few others. Shao Yang, Chief Strategy Officer of Huawei, briefed that they intended the one device to control all. And this sourced the business model. While it received tons of controversies, we can certainly see the results.

While the American market denied some business proposals, the company dropped negative 24.5% in the share market. While most of us know about the company’s product selling business model, they also hold access t over 100,000+ patents that are active belonging to a 40,000+ patent family. Each patent can rise to multimillion-dollar or billion-dollar companies. Being a respected member of the fortune 500 companies, the enterprise does regular business with over 700 cities.

Pandemic Plans

With business over 170 countries and regions, Huawei raised online support at pandemic times, put more effort into cloud computing, online learning and e-shopping, and even telework support.

A readable version of the Annual Report is provided with in-depth details of all the changes and controversial topics that helped to thrive in the tech world. Huawei is adding more partners with ICT within the IETF to standardise many technologies like IPv6 and SRv6. It will help bring more balance and effective ways to spread the 5G network.

In the press conference unveiling the annual report, Hu said they continuously looked for ways to reach more customers. It was supplying them with daily drivers and computing products. Even the chip shortage in the European market resulted in Biden to order semiconductor supply chain review. They still received license’s from AMD, Intel and Microsoft at the time. Overall, the report showed Huawei’s growth even with all the bumps and stops. If Huawei can achieve success in the EU markets like before, there is a chance for a change in stance.





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