Huawei’s mobile phone was bright in 2016, why did Ren Zhengfei say “no” to Yu Chengdong?

On January 6th, 2017, at the CES 2017 exhibition, Huawei brought the flagship mobile phone Mate 9 to the United States. Huawei CEO Cheng Chengdong’s passionate speech shocked the United States and also released the 2016 annual results of Huawei’s consumer business. It is expected that Huawei's consumer business will achieve sales revenue of RMB 178 billion in 2016, up 42% year-on-year; smartphone shipments will reach 139 million units, up 29% year-on-year.

Huawei's mobile phone shipments exceeded 100 million units for the first time in 2015. In 2016, the target was 140 million units, and sales reached 139 million times. The uncompleted rate was less than 1%. It is said that it is mainly due to the drag of capacity, otherwise it is likely to exceed 150 million units after 2016.

According to IDC, global smartphone shipment growth in 2016 is only 0.6%, which means that Huawei's smartphone shipment growth rate far exceeds the industry average. This is undoubtedly a bright transcript!

Yu Chengdong said, "Under the severe situation in the industry, Huawei's consumer business has achieved far greater growth than the industry's growth rate. This is because we have always focused on consumers, focusing on meaningful innovation and continuing to build high-end brand influence. The result of force and global channel and service capabilities."

However, there are rumors in the industry that Huawei CEO Ren Zhengfei expressed dissatisfaction with Yu Chengdong!

According to the Titan Media report, when the reporter interviewed Yu Chengdong at the CES exhibition to prove that "Ren Zhengfei has not criticized his performance is not up to standard", Yu Chengdong said with some sorrow: "The problem of production capacity can always be understood. If you have to say anything, That is to criticize our profitability is still insufficient, profit growth is too slow, too much profit has been earned by channel dealers, we have become working for channel dealers. This is more dissatisfied with Ren."

The profit is not good! Perhaps this is also the reason why Huawei's terminal business has not announced profits.

Huawei smartphones sell so well, where is the profit? Yu Chengdong said, "The normal channel for most mobile phones is 4-6%, up to 8%, but Huawei is 10% more."

On January 13, 2016, Ren Zhengfei first proposed at the Huawei Market Work Conference that “the terminal should dare to exceed the sales revenue of 100 billion US dollars in five years”. For Yu Chengdong, in addition to his own rush, the sales model is still limited by In the case of traditional channels, it can only be beneficial to partners to promote them to run wild.

"The 95% of their profits come from us, but the resources for us are no more than 10%." This is where Yu Chengdong is extremely dissatisfied with the channel.

In explaining Huawei's strategy, Ren Zhengfei said: "The current 4K/2K/4G and corporate government demand for cloud services has brought strategic opportunities to the network and data center. This is our major opportunity window. We must dare to take this strategic opportunity. When the window is open, gather power, intensive investment, saturation attack. Pounce on it, tear it open, develop in depth, and expand horizontally. Our strategic goal is to make the pipeline platform bigger and stronger at a high level."

If Huawei's pipeline strategy is likened to "Avalokitesvara", Huawei's mobile phone is undoubtedly the "Thousand Hands" of Avalokitesvara. Can you quickly expand the pipe? Can you save money from the customer's pocket more conveniently? ... all depends on the sound development of Huawei mobile phones.

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