Huawei has just revealed its last year’s revenue and with that, it has entered the same league as Google and Microsoft, surpassing the $100 billion milestone. The two companies had reported a revenue of over $100 last year and with a 20 per cent annual rise in the profits, Huawei has also entered the multinational technology companies in the US$100 billion club.
Image Source: news.cgtn
Although
Huawei has been facing some issues in running the business in the
other countries, and came under siege by the US government for the
functioning of its 5G network in the country last year, the recorded
revenue shows that if the company would be functioning fully in the
US, it would have earned much more profits.
Huawei
is the third largest smartphone maker, and most of the revenue it
earned was from its smartphone sales. The smartphone division of the
company has made a 45 per cent of share in the profits. The company
is also the biggest telecommunications equipment seller in the world,
and this very division contributed almost 50 per cent in the profits.
Although
the contribution of the carrier technology division of Huawei fell by
a 1.3 per cent and contributed the least, this is considered as an
effect of the US opposing other countries use the Huawei equipment in
their telecommunications networks.
Along with the US, Australia has already banned the use of Huawei equipment. And, due to the Huawei’s cybersecurity practices, UK and EU are also considering banning the use of the company’s equipment in next-generation networks.
The company is blamed for spying for the Chinese government by the US government, which the company has been denying saying that its products are no threat to the national security of other countries. Still, the company has confirmed that it has signed a few contracts for its 5G networks in Europe, the Middle East, and Asia-Pacific.
The
recorded revenue shows the fastest growth of the company in the last
two years, and with the new contracts, the company may see some more
growth in the coming future.
Yashica is a Software Engineer turned Content Writer, who loves to write on social causes and expertise in writing technical stuff. She loves to watch movies and explore new places. She believes that you need to live once before you die. So experimenting with her life and career choices, she is trying to live her life to the fullest.
The national security is a critical issue and the Australian government has given this reason to ban the world’s third largest smartphone company Huawei from its 5G network project. The news of banning Huawei started hitting the headlines in the month of June this year, and finally, on the last Thursday, it was officially imposed on Huawei.
Noticeably, as a result of the friction between the US and China, U.S. had also banned Huawei in its lucrative market over national security concern. Now this time, Australian intelligence agencies have also raised the same matter by saying that Beijing can force the Chinese companies to share sensitive data with them.
According to the reports, Australia’s acting Home Affairs Minister Scott Morrison said that the Government’s priority would “always be the safety and security of Australians”. Another government official stated, “Huawei owns political committees and they have to serve the Chinese intelligence agencies, under the Communist law if requested”.
Huawei Australia has denied all the connection with the political parties and has given an assurance that all the shares of Huawei are owned by its employees and the Chinese Government has nothing to do with its functioning. It also came on to twitter saying, ”This is an extremely disappointing result for consumers. Huawei is a world leader in 5G. Has safely & securely delivered wireless technology in Aust for close to 15 yrs”.
The ban on Huawei is only for Australian 5G network. It is already supplying equipment for the 4g network in Australia and will continue to do so. Along with Huawei, some other Chinese companies are also banned from the Australian 5G network, including ZTE.
Yashica is a Software Engineer turned Content Writer, who loves to write on social causes and expertise in writing technical stuff. She loves to watch movies and explore new places. She believes that you need to live once before you die. So experimenting with her life and career choices, she is trying to live her life to the fullest.
Revolutionary ideas are changing the way we live (of living) our lives. Humans have surpassed their genius and brought innovations which are making this world a better place. As they say, there’s no age limit for you to take charge of your life and invent something that would bring a revolution in the world. While most of today’s innovative start-ups are coming from youngsters the story of Huawei is something entirely different. The Chinese tech giant came into existence when its founder was in his forties. His determination led him to start a company which now is valued over $140 billion.
Early Life
Born on October 25th, 1944 in Anshun, China, Ren Zhengfei to a school president father and schoolteacher mother. His father worked as an accounting clerk in a government arms factory. Ren completed his secondary school and went on to attend Chongqing University in 1960. From there, he joined People’s Liberation Army research institute, to work as a military technologist in the IT unit. Due to his innovations and achievements, he was recognized at various levels and was selected to attend the National Science Conference in 1978 as a PLA delegate.
He retired from the army in 1983 after nine years when the Chinese government discontinued the whole engineering unit. After retiring, Ren went on to work with Shenzhen South Sea Oil Corporation. But soon left the job in 1987 as it was not as satisfactory work as per his talent. By the time he left Shenzhen, he had capital of about sh10 million.
The Beginning of Huawei
Ren founded Huawei Technologies Co. Ltd the same year as he left Shenzhen. With the initial investment of 21,000 yuan (about $5000) Huawei’s first business was to sell telephone exchange equipment from Hong Kong. He took the position of Chief Executive Officer and lead the company to make it the world’s third top smartphone selling brand after Apple and Samsung.
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Huawei focuses on manufacturing different components required for the electronic gadgets. Almost every electronic gadget is made with components made by Huawei. Apart from smartphones and small components, Huawei dominates the market in producing the highest mobile devices like routers, broadband, and 4G network devices. Huawei became the first firm to roll out 5G network across the world.
Ownership
Unlike other big firms, Huawei’s ownership is held by its 85,000 employees. All the employees hold a percentage of the company’s share. That leaves only 1.4% share stake with Ren Zhengfei valued at $450 million, as of 2010. Ren still remains the founder of Huawei and is respected by the employees.
Joe Kelly, Huawei’s VP for international media relations, says, “Zhengfei relinquished ownership of the firm to employees to guarantee its continuity and attract talent.” The company’s campus at Shenzhen in Guangdong province is surrounded with trees and makes a beautiful sight for the workers.
Unique Working Style
Huawei is probably the only company to follow a unique leadership style. Most of the decisions are made by the engineers in the company. Company’s day to day activities are run by three different executives, each one of them retains the position of CEO every six months on a rotational basis. Ren introduced this strategy which was inspired by the migration of the birds. Kelly further added, “Birds migrate in a ‘V’ formation, and engineering shows that the bird at the apex takes the heaviest burden.”
ally, this rotation system helps the company from facing bad politics. Often workers in a corporation tend to follow a certain person, which might create an imbalance among the company’s workforce. But, the rotation system gives equal chance to each one of the leaders to show their talent and take the company forward.
Investment in Research
Huawei is an active investor in innovative research projects and invests 10% of its annual revenue into R&D. The research department holds over 10,000 patents and keeps innovating each year than the previous one.
Ren is an active supporter of Communist Party of China. The company is growing rapidly and Forbes has estimated Zhengfei’s wealth at $2.1 billion. Although he is a billionaire, Zhengfei prefers a low profile lifestyle and even travels on the public transport. He lives with his daughter Cathy Meng who is also the CFO of Huawei.
Harshal Pawar is an avid reader, a TV show addict, and a writer. He has a personal blog brainwork.wordpress.com where he jots down his articles and poetry about love and life.
He is currently pursuing film-making and wishes to bring the words written on a paper to the screen. More of all he is a scorpio.
