Huawei is one of the companies that is struggling to work around the restrictions enforced by the US government. Because of the new guidelines, the China-based company is finding it almost impossible to procure supplies from its suppliers based in the United States. It is heavily dependent on the supply of these components for its 5G rollout and overall production process.
The fact that Huawei was one of the foremost companies to deal with this crisis is exemplified by the fact that it ended up selling its smartphone brand Honor to sustain itself. The smartphone brand is now owned by Shenzhen Zhixin New Information Technology Co., Ltd. Despite the change in ownership, the top management at Honor unchanged, and no effects were observed on the way the company carried out its operations. Tough times call for tough decisions but letting go of a popular brand like Honor must not have been an easy decision for Huawei.
After selling off Honor, Huawei is now focusing its energies on carrying out developmental activities in other areas like home electronics production, mining, pig farming, and a lot more. It hopes that planned investment in these areas will help it get over its losses in due course of time. The silver lining is that unlike its smartphone business, it does not face any major restrictions in these areas. Now, the onus is on the company to make the right decisions and get back on its feet.
One of the major plans the company seems to have made to emerge stronger from the crisis is to enter into a new space. It is being said that Huawei is interested in entering the electric vehicle market and has already put together plans to make a dedicated investment in that direction. Huawei, which is widely recognized as the largest tech equipment maker in the world, is reportedly having discussions with China’s Changan Automobile and a couple of other companies about the possibility of manufacturing electric vehicles in their production units.
While there are strong rumors about the company developing an investment model, there has been no confirmation about the same from Huawei. Interestingly, the company has made a statement saying that it does not intend to manufacture Huawei branded electric vehicles. It has also denied the fact that it is having discussions with automakers.
Many companies, as a part of their social responsibility, are stepping up to fight the many challenges posed by climate change. That is one of the reasons why automobile manufacturing companies are putting their weight behind producing electric vehicles which are touted to be more eco-friendly than conventional cars or combustion-driven vehicles. There has been a rising demand for electric vehicles and perhaps, that is the reason why Huawei plans to get into this space as well.
On the business front, Huawei is expected to launch a series of premium quality 5G-enabled smartphones this year. These phones will feature the company’s in-house operating system.