Development Strategies of Huawei, 2020 and Beyond

Development Strategies of Huawei, 2020 and Beyond

  • Market Intelligence & Consulting Institute
  • June 2020
  • Telecommunications
  • 35 pages

Report Description

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In December 2018, the US government requested the Canadian police to arrest Meng Wanzhou pursuant to the extradition treaty between Canada and the United States. In May 2019, the US government restricted US firms from selling components and technology to Huawei and put Huawei in a difficult situation. In 2020, following embracing cooperate restructuring and supply chain strengthening strategies, Huawei has been attempting to maintain revenue growth and survive from global backlash against Huawei, especially the United States and its allies, while maintaining its leading position in the global communications market in the 5G era. This report provides an overview of Huawei in terms of revenue performance and market presence; points out three major challenges amid the US-China trade war and COVID-19 pandemic; examines countermeasures of the company in response to US government charges against Huawei, COVID-19 pandemic, and difficulties facing its business groups over the years.  

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Table of Contents

1.Introduction of Huawei 

1.1 Maintained Double-Digit Revenue Growth in 2019 Despite US Sanctions 
1.2 Huawei Has Telecom Customers in All Markets Outside of the US 

2. Challenges Facing Huawei 
2.1 US Restrictions on Supply and Demand Hamper Huawei’s Market Expansion 
2.1.1 Supply-side: Barriers on Huawei’s Acquisition of Critical US software and hardware components Increase
2.1.2 Demand-side - Restrictions placed in the name of national security on the purchase of Huawei equipment by US companies with alternatives suggested 9
2.2 COVID-19 Epidemic May Negatively Impact Huawei in Two Ways 
2.2.1 Mobile Carriers Delaying Their Network Upgrades and Reducing Their Annual Capital Expenditures 
2.2.2 Many Countries Have Questioned China’s Handling of the Epidemic and Huawei May Be Caught in the Backlash
2.3 Slow Growth in Two Major Business Groups with Better Performance Needed in Europe and East Asia 

3. Countermeasures of Huawei 
3.1 Response to US Government and COVID-19 
3.1.1 Actively Counter US Government’s Accusations through Litigation and Public Statements 
3.1.2 Consolidation of Relations with Friendly European Nations
3.1.3 Huawei Aims for Becoming International Leader in Communications Technology 
3.1.4 Improving the Self-Sufficiency in Critical Software and Hardware 
3.2 Response to Issues Facing Business Groups 
3.2.1 Consolidation of 5G Orders for Chinese Market 
3.2.2 Corporate Restructuring to Create New BU for Cloud&AI and Smart Car 
3.2.3 Continued Rollouts of New Products into Main Product Lines 

4. MIC Perspective 

Appendix  

List of Companies 

List of Tables

Table 1 Huawei Revenue and Profit Performance, 2013 ~ 2019 
Table 2 Annual Revenue Growth of Huawei by Business Group and Geographic Region, 2013 ~ 2019 
Table 3 Huawei’s Response to US Government Sanctions 
Table 4 Leading US/Chinese ICT Vendors’ Lobbying Amount in the EU 
Table 5 R&D Spending of the Top Three Mobile Communications System Vendors, 2015 ~ 2019 
Table 6 Key Investments of Hubble Technology, 2019-2020 
Table 7 Outcome of Huawei Bids on China Mobile 5G Projects 

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