DEV Community

Cover image for Huawei is struggling to survive amid massive US pressure
Kevin M. Mansour
Kevin M. Mansour

Posted on

Huawei is struggling to survive amid massive US pressure

Not long ago, the founder and president of Huawei Ren Jingfei stated and insisted on his position that the ban on the use of smart phone components by American companies, which the company was subjected to by the Trump administration, will not harm its business in the long term.

Rather, he insisted that keeping Huawei on the blacklist - companies that cannot be dealt with - forever would not affect it at all, as he said in an interview back last November, "They can keep us there forever, because we would be fine without them." But this statement was about a month before the outbreak of global panic about the new Corona virus and disrupted production in China and many countries of the world.

But before we judge the man with bad expectation, we must bear in mind that Huawei was very dominant in the smartphone market and was close to surpassing both Apple and Samsung - the two biggest players in this market - in terms of sales and profits.

In early 2019, the company tried to woo the American public towards its products through a group of "full page" advertisements in major American newspapers such as the New York Times and Washington Post as well as the Wall Street Journal and Politico. Huawei called on the American public not to believe all that is said about it and said, "We would like to know us. The American public is better. ”

Then 2020 came with all its and its dues and harmed the Chinese company, starting with the tightening of US sanctions, then the spread of the Corona pandemic globally, and Huawei’s stage slogan shifted from “continued growth” to survival under these conditions.

Acting CEO Guo Ping admitted that at a press conference last September where he said that the company “is in a difficult situation these days. We have put the ongoing aggression by the US government under great pressure ”and at that time reports surfaced that the company intends to reduce its smartphone production by a massive percentage in 2021.

"Now, survival is the goal."

Huawei released its latest financial figures on Friday, in which it shows that the company achieved $ 101 billion in revenue in the first nine months of the year, a 10% increase compared to the same period in 2019, but growth has clearly slowed compared to the 24% increase in revenue in the first three months. From 2019.

Huawei said in a statement Friday that the Corona virus has caused pressure on its supply chains and thus disrupted production processes, and this comes in conjunction with the company's announcement of the new Mate 40 Pro phone.

The company added in the statement that it will do its utmost to find solutions, survive and fulfill its obligations towards customers and suppliers.

First place despite the difficulties

It is surprising that Huawei climbed to the top of smart companies according to the number of smart phones sold, surpassing the Korean Samsung, and analysts attributed this to the unaffectedness of some markets by the spread of Corona and the great control of Huawei in China, and with the return of things to normal, Samsung may return to the top again.

Top comments (0)