Huawei's recent hot topics include the release of its semi-annual report for 2017. Despite the challenges, Ren Zhengfei, the leader of Huawei, remains clear about the situation. His latest speech emphasized the importance of profitable growth and maintaining healthy cash flow. During his visit to Thailand, Germany, Poland, and Russia in June 2017, he reiterated this concept.
Ren Zhengfei shared his thoughts during a discussion at the German representative office: "In the face of a sluggish global economy, operators need to focus on profitability rather than blindly pursuing growth. Otherwise, they risk collapse. Ensuring profitability is crucial to weathering tough times, and later on, you can seize opportunities. Rushing to expand without profitability could be detrimental."
In the terminal business sector, Huawei's smartphone shipments continue to grow but remain behind Samsung. Samsung holds a significant edge in the electronic supply chain, particularly in OLED screens and memory chips. High-end models like the Galaxy S8 have seen a 15% increase in sales compared to the S7. In Q2, Samsung sold 93 million phones, with smartphones accounting for over 85% of total sales. Huawei announced that in the first half of 2017, its smartphone shipments reached 73.01 million units, marking a 21% year-over-year increase and securing a 9.8% share of the global smartphone market.
At a symposium for new employee orientation, Ren Zhengfei encouraged employees to embrace an open mindset and build upon the achievements of their predecessors. He highlighted the importance of continuous improvement, even small advancements, to avoid unnecessary company investment.
Ren Zhengfei's speech also included a story about Chinese character reform. He mentioned Zhou Youguang, known as the "Father of Chinese Pinyin," who played a pivotal role in simplifying the Chinese writing system. Ren emphasized the contributions of numerous individuals in advancing societal progress, urging employees to stand on the shoulders of giants.
Looking back at the history of Chinese characters, two major crises occurred. The first was during the late Qing Dynasty and early Republic of China, where intellectuals sought to simplify the complex classical Chinese. The second crisis arose with the advent of the computer age, which posed challenges to Chinese character input methods. Solutions like the "Wang Code Five Strokes" helped address these issues, paving the way for today's efficient input systems.
Reflecting on these developments, Ren Zhengfei noted the importance of reform and innovation in aligning with technological advancements. He praised the efforts of pioneers like Zhou Youguang, whose contributions have facilitated China's integration into the global economy.
For new employees, Ren encouraged active communication and interdisciplinary collaboration. He emphasized the value of diverse perspectives and constructive feedback in driving organizational growth. Additionally, he highlighted the significance of learning and understanding broader societal issues, suggesting that philosophy serves as a guiding compass in navigating complex challenges.
Books, he noted, remain invaluable resources, offering insights into human knowledge and experience. While not requiring immediate philosophical studies, future leaders should cultivate a broader understanding of people and systems to excel in their roles.
In conclusion, Ren Zhengfei expressed gratitude for the efforts of those who contributed to China's linguistic and economic advancements. He urged new employees to contribute meaningfully to Huawei's future, emphasizing the importance of perseverance and collective effort in achieving sustainable growth.
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