What They Say
Caixin Global of China reported a memo from Huawei’s founder Ren Zhengfei to the firm’s employees in which he said that the focus should be on profits and cash flow instead of revenue to ensure the company’s survival over the next three years. He wrote:
“With survival the main principle, marginal businesses will be shrunken and closed. The chill will be felt by everyone.”
What We Think
I guess that he wasn’t smiling like his official portrait when he sent this mail! These have been tough times to be Huawei. However, it hasn’t been all gloom and doom. Although smartphone sales have been down, Canalys reported that the firm’s share of the Chinese PC market had gone from 3.4% to 7.1% in just one year in Q2 2022. (BR)
