Ren Zhengfei, founder and president of Huawei, said at the 2016 market working conference that “revenue of Huawei Device shall exceed $100 billion in five years”, and at the same time, it should maintain reasonable profits and make sure the inventory risks are under control.
Huawei Consumer BG develops at a rapid and surprising speed,it only took one year to achieve $20 billion revenue, equaling to one-third of Huawei’s total revenue.
During his speech, Ren made arrangements for future development of its three business groups, and the performance target of Consumer BG is relatively clear-- revenue of Huawei devices shall exceed $100 billion in the next five years and Huawei Consumer BG should consider carefully about the structure, organization and operation pattern.
"We must drive the sales of mid-low end devices by being based on mid-high end brand construction," he said.
Ren pointed out that under the protective umbrella of intellectual property rights, Huawei should accelerate the layout of device business in 170 countries (except Brazil). The relevant regions and representative offices should set up device sales and service organizations as soon as possible in countries with weak device sales organizational ability.
For the relationship between Huawei Consumer BG and Huawei's original global branches, he proposed that device organizations can get involved in the line management of strategically focused markets and the original representative offices should share their successful experiences. For the non-strategic market, local representative offices can manage it so that Huawei Consumer BG won’t cost valuable energy in these markets. Instead, Huawei should focus on potential important markets and expand them as soon as possible.
Data shows that shipments of Huawei devices reached 20 million, 32 million, 52 million, 75 million and 100 million respectively from 2011 to 2015. Revenue of Huawei Consumer BG in 2015 exceeded $20 billion with a year-on-year increase of nearly 70%, and it achieved breakthroughs in smart devices, wearable devices, automotive business, consumer chip business and other business.
Richard Yu, CEO of Huawei Consumer BG said that sales of Huawei devices will exceed Apple in one or two years, but it still needs more time to win in the high-end market.
"In the next 3-5 years, most of the mobile phone vendors will disappear due to the fierce market competition. Huawei Consumer BG will not only be one of the surviving vendors but also step into a new history stage and become the most important vendor in the world if it keeps steady development in 2016 and 2017.” In his new year speech, Yu said that Huawei Consumer BG will aim for greater success in the next two years, and 2016 will become the historical turning point in determining whether it can change the industrial structure and grasp the rising global strategic opportunities. Huawei Consumer BG will take a series of steps in the market, internal, brand and ecological chain.