Huawei released its 2017 annual report, which perfectly realized the expectation of Huawei's rotating CEO Hu Houkun in the New Year's speech on New Year's Day in 2018 - the annual sales income was 600 billion yuan.
According to the report, Huawei's performance has grown steadily, achieving global sales revenue of 603.6 billion yuan, up 15.7% year-on-year; net profit of 47.5 billion yuan, up 28.1% year-on-year. In 2017, Huawei continued to invest in the future, with R&D expenses reaching 89.7 billion yuan, a year-on-year increase of 17.4%. In the past decade, R&D expenses exceeded 394 billion yuan.
Looking at Huawei's performance figures alone may not be intuitive enough. The horizontal comparison can see what the 603.6 billion yuan represents.
In May 2017, Alibaba announced its FY2017 results (April 2016 to March 2017). Alibaba's full-year revenue for FY2017 was 158.273 billion yuan, which means that Alibaba's annual revenue is about Huawei. 1/4.
In March 2018, ZTE also announced its fiscal year 2017 financial report. The company achieved revenue of 108.82 billion yuan in 2017, which is 1/6 of Huawei.
Just two days ago, at the Xiaomi new product launch conference, Lei Jun announced that Xiaomi’s revenue in 2017 exceeded 100 billion yuan, which is also 1/6 of Huawei’s.
Where are the 600 billion yuan?
The vast majority of Huawei's revenue structure comes from carrier services and consumer services.
(Huawei's 2017 earnings report announced revenue composition)
In 2017, in the carrier business field, Huawei's innovative solutions tapped the potential of the existing network and seized opportunities such as video, IoT and cloud communication to achieve sales revenue of RMB 217.8 billion, a year-on-year increase of 2.5%.
In the business field, we intensified innovation in the fields of cloud computing, big data, enterprise parks, data centers, and Internet of Things, and promoted widespread application in various industries, achieving sales revenue of RMB 54.9 billion, a year-on-year increase of 35.1%.
In the consumer business field, Huawei and glory double brands are on the same page, and the market scale is growing rapidly. Huawei (including glory) smartphones shipped 153 million units a year, achieving sales revenue of RMB 237.2 billion, a year-on-year increase of 31.9. %.
In the cloud business field, the company established Cloud BU, launched 14 cloud services and more than 50 solutions in 14 categories, released EI (Enterprise Intelligence) enterprise intelligence, and developed more than 2,000 cloud service partners.
Look at the vents through Huawei's strategy
At the same time as the financial report was released, Hu Houkun, the rotating chairman of Huawei, also expressed his views on the future direction. He said:
We are standing at a new starting point, and the opportunities and challenges of the future are coming at a faster pace. Perseverance and open innovation can help us to be invincible. In the next ten years, Huawei will continue to increase its investment in technological innovation with an annual scale of more than 10 billion US dollars, actively open and cooperate, attract and cultivate top talents, and strengthen exploratory research to better enable digital and intelligent transformation. . Looking forward to 2018, emerging technologies such as the Internet of Things, cloud computing, artificial intelligence and 5G are accelerating to scale commercial use. We must not only grasp the trend of technological innovation and business transformation, but also pay attention to the real challenges faced by customers in the process of digital transformation, help customers solve problems, achieve commercial success, and bring the digital world to everyone, every family, every Organizations, building a smart world of the Internet of Everything.
At the beginning of this year, Huawei also released the company's future strategy after its 30th anniversary: ​​Huawei determined to bring the digital world to customers, bring the digital world to everyone, every family, every organization, and build a smart world of Internet of Everything.
It is not difficult to see that the keywords in this new blueprint are “interconnected†and “intelligentâ€, and “intelligent†is artificial intelligence. In addition to Huawei's traditional operators and Internet of Things services, “interconnected†also represents the emerging 5G. technology.
artificial intelligence
Huawei Noah's Ark Lab has been one of the leading laboratories in the field of AI research, but there has not been much progress in the past; however, in the second half of 2017, Huawei began to exert its strength in the field of artificial intelligence applications.
In September 2017, Huawei released the world's first artificial smart phone chip Kirin 970. The domestic AI chip startup company Cambrian participated in the development of this chip, providing 1A intelligent processor and its upper software.
In March of this year, Huawei released HiKey 970, an artificial intelligence development platform. The platform has powerful AI computing power and powerful NPU hardware acceleration capability, which helps AI development and the mobile AI application ecosystem built by joint developers.
At the same time, in a speech in October 2017, Ren Zhengfei said that artificial intelligence technology will be used to transform Huawei's process management future; on the other hand, Huawei should rapidly expand the artificial intelligence combat team, attach importance to the enabling engineering department, and rapidly expand artificial intelligence. The team of capable people.
Huawei, which is the operator of the operator, has a natural advantage in the AI ​​platform service on the infrastructure, which may also become an important growth point for Huawei's performance in the future.
5G technology
Huawei is battling the 5G position as a breakthrough in the strategy of "building a smart world of Internet of Everything".
In 2017, Huawei's 5G pre-commercial system has entered the developed world in many information industries, with 10 core cities in London, Berlin, Beijing, Shanghai, Tokyo, Milan, Dubai, Vancouver, Toronto, Seoul and the world's leading regions. Operators such as BT, Deutsche Telekom, China Mobile, China Telecom, China Unicom, Vodafone, ETIsalat, LGU+, Telus, Bell, etc. have implemented 5G pre-commercial network deployment.
In 2018, Huawei will launch a full set of 5G network equipment solutions for large-scale commercial enterprises, supporting global operators to deploy 5G networks, bringing the mobile Internet to a new level, opening up the era of all things connected, and taking on the historical mission of digitalization in all walks of life.
In addition, Huawei said it will launch a 5G-supported Kirin chip in 2019 and simultaneously launch a 5G-enabled smartphone.
It can be seen from Huawei's strategy that 5G technology has entered the pre-commercial stage, and after the complete replacement of 5G, the new connection will inevitably bring new business opportunities, which may become the next stage of startups and related fields. The company's new growth point.
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