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Huawei president Ren Zhengfei: We aim to achieve USD 100 billion sales revenue in 5 years

Ren Zhengfei

The president of Huawei Ren Zhengfei on Wednesday told Huawei’s Consumer Business Group to aim high and achieve USD 100 billion revenue in five years in an internal meeting, reported Sohu IT on Thursday.

Huawei’s Consumer Business Group operates three of Huawei’s key products including smartphones, mobile broadband devices and home devices. The division’s CEO Richard Yu announced in December that Huawei has achieved 100 million shipments, ranking top in China and tailing Apple and Samsung globally.

The Consumer Business Group has become the “most profitable business” of Huawei, earning more than USD two billion in one year, one third of Huawei’s total revenue. Starting from a revenue of USD two billion in 2015, its revenue will have to grow at an annual rate of over 30% to achieve USD 100 billion in five years.

Below are excerpts and highlights from Ren’s speech.

1. First vertical growth, then horizontal expansion
We have to go deep enough before expanding, or we are very likely to deviate from our focus.

We should speed up the establishment of sales groups in 170 countries (except Brazil) while respecting intellectual property rules. We aim to make over USD 100 billion in revenue in five years. Thus, we need to make serious considerations in our business structure, organization and patterns. We will always bear in mind that our business should be based on the success of our mid- and high-end products, which will in turn boost the sales of low-end products.

Strategic opportunities are ahead of us. Smart cities, the digitalization of power utilities and internet banking all require cloud computing services from governments and enterprises. We should seize these opportunities.

There will be a separation between the power to manage resources and the power to command in the future. The power to command shall be transferred to the hands of the excellent fighters at our frontiers so they can flexibly make decisions.

We are meant to train our soldiers to be professional in their respective businesses. They are not required to be well-rounded and to switch from one field to another.

2. Single out excellence, no matter what background it has
Elites are not only those at the top of the pyramid. Talent exists in every field and every class. We welcome young people with all kinds of degrees. Because there are many who work in fields that are irrelevant to what they learned in school. Directors should have a big picture in mind and place veterans with merit in higher positions. Those veterans get what they deserve, and positions are available for new talent.

We should aim to recruit no less than 5000 fresh graduates every year. Huawei welcomes young people with great passion and ambition, and also those who prefer to make their dedications quietly.

Commanders should keep their eyes on the outcome. More accurately, on success. Everything serves the end goal of providing timely and precise support and service. Those in command should be able to see the imperfections in a success, and the reasons in a failure.

3. Go ahead without hesitation once the direction is determined
In the next 20-30 years, we may experience a large, unprecedented technological revolution that is beyond our imagination. Although we don’t know what to expect, we have to make our way ahead into realms that no one has set foot in. We should never find excuses for cowardice.

The time for Huawei to take the lead is coming. Once we are there, we should actively assume responsibility for society. We shall not set barriers in the name of self-protection. We shall not be self-centered either. Instead, we should remain open to cooperation, like 3GPP, Apple and Google.

(All photos from Baidu Images)

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