Huawei Technologies, Shenzhen’s biggest industrial enterprise, needs two years to resume growth and it will most certainly not die, says its pugnacious founder, Ren Zhengfei. This is despite suffering an attack at the hands of the US government that Ren says he had not expected to be as vicious as it turned out to be, resulting in around US$30 billion of lost sales opportunities.
As reported by SCMP, which has a video clip of Ren that is highly watchable, Huawei did US$107 billion of sales last year. Ren said the US attack will wipe out US$30 billion of growth over the next two years, and it had already resulted in a 40% plunge in smartphone sales. Do the math, dear reader: Either Ren doesn’t know his own income statement, or Huawei would have been, prior to the attack, about to launch itself into the stratosphere with new products that were due to come online in 2019-2020. We can only assume he had been thinking about 5G.
Huawei is a private company, even though it accounts for 10% of the entire Shenzhen economy, so there is no pressure on Ren to live up to these claims. Let’s see how he does.