\tHuawei founder and CEO Ren Zhengfei (pictured) plotted a major restructure of the business intended to stave off the threat of US sanctions on its supply chain and production, Bloomberg reported.<\/p>\n
Citing an internal memo, the news agency said Ren\u2019s plan involved a wide-reaching shake-up of all Huawei businesses, but with a specific focus on its smartphone unit which faces a potential shortfall in components and software due to a US trade ban.<\/p>\n
The document showed Ren wants urgent action, stating the restructure must happen within the next three-to-five years and create an \u201ciron army\u201d to tackle the US threat, Bloomberg reported. Huawei\u2019s consumer business, in particular, faced a long \u201cpainful\u201d journey, he said.<\/p>\n
Although the US subsequently eased restrictions around shipping components and software to Huawei, the threatened action had already spurred the Chinese vendor into action, culminating in the unveiling of in-house operating system HarmonyOS [1] late last week. However, Ren cautioned it would take time to build an app ecosystem [2] around the new platform, which could limit its ability to replace Android in the short term.<\/p>\n
The US is also on the brink of implementing a block on government agencies [3] purchasing Huawei equipment mandated in a defence spending bill adopted in August 2018.<\/p>\n
Soldier on
\nAlthough the US campaign against Huawei is yet to have a major financial impact, revenue increased 23 per cent year-on-year [4] to CNY401.3 billion ($56.9 billion) in H1, Ren previously warned the blocks would take around $30 billion off its top-line over the next two years and result in a $100 billion reduction in 2019 revenue.<\/p>\n
The executive said shots fired by the US at Huawei\u2019s smartphone business \u201cunfortunately hit the oil tanks\u201d, Bloomberg reported, suggesting a strong showing [5] by the vendor in the second quarter could peter out over the coming months.<\/p>\n
Still, Ren remained confident in Huawei\u2019s long-term survival, reiterating that the US would ultimately lose out by not using the vendor\u2019s 5G technology, Bloomberg stated.<\/p>\n[1] https:\/\/www.mobileworldlive.com\/featured-content\/home-banner\/huawei-makes-its-os-play\/
\n[2] https:\/\/www.mobileworldlive.com\/apps\/blog-apps\/blog-who-would-supply-apps-for-a-huawei-os\/
\n[3] https:\/\/www.mobileworldlive.com\/featured-content\/top-three\/huawei-hits-out-at-latest-us-block\/
\n[4] https:\/\/www.mobileworldlive.com\/featured-content\/top-three\/us-restrictions-fail-to-halt-huawei-revenue-growth\/
\n[5] https:\/\/www.mobileworldlive.com\/devices\/news-devices\/smartphone-decline-slows-as-huawei-surprises\/<\/p>\n","protected":false},"excerpt":{"rendered":"
Huawei founder and CEO Ren Zhengfei (pictured) plotted a major restructure of the business intended …<\/p>\n
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