Revenue declines but Huawei is still holding a huge amount of cash, the cloud will be the main spearhead in the future
According to Huawei’s newly released 2021 annual report, the Chinese giant asserts that despite the decline in revenue, the revenue-to-cash ratio is very good with current net cash of 241.2 billion. USD, securing future-oriented R&D investments.
With this huge amount of cash, Huawei will continue to invest in research and development, mainly in 3 areas: system architecture, software management, and finally, basic scientific research. In addition, Huawei will also continue to invest in building a more stable supply chain to ensure the continuity and competitiveness of future products.
Huawei admits it is difficult to make its own chips
Huawei admits that after the US embargo, the smartphone business has faced many difficulties, especially the supply of processor chips for smartphones. Huawei has also designed and manufactured its own chips, but expanding the line is complicated and takes time.
“Our smartphone business has been hit pretty hard because, for chips used in smartphones, it requires large payment capacity, low power consumption and small size. making it difficult for us to access such chips,” said a Huawei representative.
Therefore, Huawei is looking for solutions to ensure the smartphone business can develop sustainably. But maybe these will just be the solutions to help sustain to survive. Instead, Huawei thinks the wearables business is more promising, with very good growth.
Cloud computing will be the spearhead, similar to Microsoft’s orientation
Three years ago in Shanghai, Huawei announced it would enter the cloud computing market. By 2021, Huawei Cloud has successfully become a top 5 cloud service provider globally. In Asia Pacific and North America, Huawei’s cloud computing has the fastest growth.
Huawei’s next goal is to become the No. 2 cloud service provider globally. By deploying more data center and network infrastructure around the world, thereby providing seamless experiences for users anywhere in the world.
Huawei’s 2021 financial report shows that 60% of revenue comes from corporate customers. Therefore, Huawei will also continue to focus on enterprise services using 5G technology, computing technology, and cloud technology. This is also the direction that Microsoft has chosen and brought a lot of success.
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