Ren Zhengfei: 90-day "temporary permission" is meaningless because we are ready

Ren Zhengfei: 90-day "temporary permission" is meaningless because we are ready

On May 21, Ren Zhengfei, founder and president of Huawei, said in an interview with the media that 90 days does not make much sense because we are already prepared and do not need this 90 days. The official website of the U.S. Department of Commerce announced on May 20 that it would give Huawei and its partners a 90-day "temporary license." The announcement stated that this temporary arrangement is to "give relevant departments and companies time to make adjustments."

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On May 15, local time in the United States, the Bureau of Industry and Security (BIS) of the U.S. Department of Commerce added Huawei to its Entity List, which means that Huawei will face tremendous pressure from U.S. suppliers to "cut off supply."

On May 16, Huawei said in a statement that it opposed the decision of the Bureau of Industry and Security (BIS) of the U.S. Department of Commerce. This is not in the interests of any party, will cause huge economic losses to U.S. companies that cooperate with Huawei, affect tens of thousands of jobs in the United States, and also undermine cooperation and mutual trust in the global supply chain. Huawei will seek relief and solutions for this matter as soon as possible and take positive measures to reduce the impact of this incident.

On May 17, Huawei announced the launch of its "spare tire" plan. He Tingbo, president of Huawei's chip company HiSilicon, said in an open letter that Huawei had already created a spare tire plan for the assumption of extreme survival. "All the spare tires that were created have become regular overnight."

On May 18, Ren Zhengfei said in an interview with Japanese media in Shenzhen that Huawei will continue to develop its own chips. "Even if there is no supply from Qualcomm and other US chip suppliers, Huawei will have no problem because we are ready for it."

Currently, Huawei is the world's second largest Android phone manufacturer, second only to Samsung in terms of shipments. On April 22, Huawei released its first quarter 2019 operating results, showing that Huawei's sales revenue in the first quarter was 179.7 billion yuan, a year-on-year increase of 39%. In 2018, Huawei's sales revenue was 721.2 billion yuan, a year-on-year increase of 19.5%, and its net profit was 59.3 billion yuan, a year-on-year increase of 25.1%.

According to the 2018 global mobile phone sales data released by IDC, Samsung's market share in 2018 was 20.8%, down 8%, but still ranked first in the world. Apple's market share was 14.9%, down 3.2%, ranking second. Huawei's market share reached 14.7%, up 33.6%, ranking third. Market analysts believe that in 2019, Huawei's mobile phone shipments will surpass Apple and become the world's second largest mobile phone manufacturer.

In terms of operator business, affected by non-market factors, Huawei's operator business revenue in 2018 was 294 billion yuan, a year-on-year decrease of 1.3%.

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