As for Huawei, in the first half of 2022, revenue decreased by 5.9% over the same period in 2021, the profit margin decreased to 5%, while last year it was 9.8%.
According to experts, senior analyst at Counterpoint Research, the Huawei founder’s message provided a realistic view of the economic outlook and offered a suitable business strategy, demonstrating rare honesty.
“Rarely do companies directly point out the problem that people are expecting.
An influential figure has broken the silence,” Lam said.
Ren isn’t the only tech leader to speak out about the current predicament.
Pony Ma Huateng, founder of Tencent Holdings, recently opened a series of lively discussions on social media when talking about the difficulties of China’s technology industry in the context of “Zero Covid”.
Meanwhile, Lei Jun, the founder of Xiaomi, gave a remarkable speech in early August during the new product launch event.
He recounted his past efforts to encourage people to be resilient in the face of future challenges.
Wang Xing, founder of online delivery service platform Meituan, also cited an ancient piece of poetry, which analysts said was a move to oppose the country’s policy of tightening operations with the technology sector.
Huawei founder Ren Zhengfei’s internal message was exposed and circulated on Chinese social media about future forecasts.
“The next 10 years will be a painful period in history, the world economy going into recession …
Huawei needs to reject any overly optimistic forecasts and make survival its most important goal for the next three years,” Ren said in a letter to employees this week.
According to the SCMP, the content of the letter is attracting great attention and becoming the topic of discussion throughout social networks.
On Weibo, the letter and related information became a hot search topic, topping the rankings.
Sina said as soon as Ren’s content was shared, China’s stock market plummeted. “Huawei’s founder’s perspective not only warns of a bleak future for the technology industry, but also affects the entire economy in the future.
That’s why the content of the article immediately caused a stir,” the page commented. Some experts say that when a giant like Huawei speaks out, it means that the problem is already very serious.
Ren said this period would be “more dangerous” than the “Huawei winter” of 2000.
The company must take existence as the main goal, collapse the business model and cut down on unnecessary things. The employees must be especially mindful of future difficulties.
