Huawei Optimizing Portfolio To Boost Business Resilience

Eric Xu, Huawei’s Rotating Chairman while delivering a keynote speech at Huawei’s 18th Global Analyst Summit on Wednesday, said, Huawei is optimizing its portfolio to boost business resilience to cope with the uncertainty brought by geopolitical tension, the resurgence of Covid-19, and U.S. bans.

“Business resilience is our guiding principle. We want to boost the resilience of our entire business, and since last year we have been working to optimize our portfolio with this goal in mind,” Xu said.

Huawei’s 2020 annual report shows the company’s sales revenue in 2020 rounded off at CNY891.4 billion, up 3.8% year-on-year, and its net profit reached CNY64.6 billion, up 3.2% year-on-year.

Xu said one of the priorities is to further strengthen Huawei’s software engineering capabilities

“We’re on the lookout for new business opportunities in the software sector. When we find the right fit, we will step up investment to increase the percentage of software and services in our revenue mix,” he notes.

In November 2018, Huawei decided to invest USD$2 billion into upgrading its software engineering capabilities. So far, the Chinese-tech company is “pleased with the results thus far”, according to Xu.

Autonomous driving software is one of the main focuses of the company software investment plan —which the company believes is at the center of entirely unmanned driving.

“With intense investment in autonomous driving software, our hope is to drive these trends forward as they facilitate the integration of the automotive and ICT industries, which in turn creates long-term strategic opportunities for Huawei. Once unmanned driving becomes a reality, we will see disruption in practically all adjacent sectors and trigger the most disruptive industry transformation the world will see in the next 10 years,” Xu explained.