ren: "Out of the Samsung Apple," who said a penalty of 100 yuan

Speaking at the Huawei Consumer Business Group Conference, Huawei CEO, Ren, said the consumer business was doing better than he had imagined, but there was still a lot of room for improvement.

Huawei's mobile phone business is now the third in the world, after Samsung and Apple.

' Don't do worthless blind innovation, ' says Ren, ' and should focus on the best user experience. He also said he wanted to learn from all the good people, who were listed as subjects of study by Ren Mi, oppo and Vivo, as well as Samsung and Apple.

He suggested that Huawei should learn about Xiaomi's marketing model. "We do not absolutely exclude the internet thinking, nor absolute certainty, but a pragmatic mentality, according to different circumstances to choose different weapons." I have only one mind-profit. ”

Before, Huawei Consumer Business CEO Yu Chengdong repeatedly proposed to surpass Samsung and Apple. In this respect, Ren said, "You said to go beyond Apple, I agree, but I mean at a profit and service level beyond the apple, not the number of sales." So the company EMT (Huawei Executive Management Committee) meeting to your terminal set a small target, within three years, service level to catch up with Apple, profit margin to catch Oppo/vivo, so we are satisfied.

Ren also said that Apple, Samsung and Huawei are the stabilizing forces that make up the terminal of the world, and we want harmony, mutual win, competition and cooperation. "Put out the Samsung, the Apple," and so on, whether in public, or private occasions, can not speak at once, who said a penalty of 100 yuan.

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Following is the transcript of Ren's speech

Email address "2017" No. No. 024 Issuer: ren

Speech at the annual meeting of consumer BG

January 17, 2017

First of all, thank you for your achievements in the past year, it is worth affirming. The consumer business in the difficult stage, our main goal is to get rid of the dilemma, how to integrate to make the terminal to today. The consumer business has progressed so much that you have done better than we thought today. But there is a lot of room for improvement, not because of better, you can not listen to others to speak of our shortcomings, nor because we have some problems, lost confidence, what problems, we communicate with each other.

First, consumer business should focus on the best user experience, against the blind innovation without value.

1, the face of customer sales interface, terminal software design must have inheritance, do not have no value of blind innovation.

Faced with different consumer groups have different terminal interface, I understand, but in the face of the same consumer group, some innovation is not necessary. For example, an application in the mobile phone interface location, on the left or right, in fact, there is no scientific basis. If consumers change a new product, they have to find the location of the application, which wastes their time. Some business people looking for applications may cost more than this one, so why should they change their phones? Therefore, we provide consumers with the operating habits must be inherited, your internal reform is the problem of engineers, can not let consumers to learn. Apple device many experiences have inheritance, it is to do optimization and perfect, no obvious value, will not change the original way.

2, hope to reduce the face of the user's development platform, multi-platform design is actually a waste.

Allow your product line has two platforms, let the internal also has the competition, but must have the internal communication. From the P-series to mate series, the phone interface is not the same, to change this situation.

Internal competition is not like "application location left or right" question, should be a matter of substance. For example, the low-end mobile phone has a huge market, oppo/vivo to meet customer demand, we have to consider how to improve the low-end mobile phone threshold line, the high-end machine new technology in the low-end mobile phone reuse, extend the life cycle. Our high-end machine to extend the sales time, reduce sales, the need to reduce the level of some obvious, and better pin hair, can have effect. For example, P9 technology can be used in low-end mobile phones, low-end machine to standardize, simplify, life-cycle maintenance-free, so as to improve the threshold of low-end mobile phones. As long as the communication function is best, the Chinese system is best, is a firewall. Mass production, is to take the circuit board "printing money." In the market competition of low-end mobile phone, through the user experience gradually to feel, such as new products, one or two years after the outdated, the ability to put 1G Internet access to the low-end machine up, still only sell this price, then they will change to Huawei mobile phone when upgrading. This is more competitive than the cost of components, the advantages of production, low-end products can be made into a wall. Why do you have to be a new mobile phone to represent the glory? This is your human resources evaluation system has a problem, or in a technology-oriented, value-oriented, to consumer-centric, effective profit-oriented.

3, focus on the best user experience, the combination of the world's best quality suppliers, forming strategic partners.

consumer business applications Millions of, in fact, we can not develop, then to the community to buy the best. If the best Apple monopoly, we buy the second good. How can we compete with Apple by combining some rotten apps to fight the nets? we want to focus on the best user experience, the combination of the world's best suppliers, forming strategic partners, it is possible to compete.

4, "Want to Rich, first road", the business unit to the process IT department to buy services, rather than to build process it.

The future end of the IT service system is for you to operate, you need to put forward requirements, by the process IT department to achieve support. The company has been added to the wasting cost of this piece, other departments in the "Road" run, how to pay "HMT", you will pay, do not need you to pay more.

Second, allow "one country one policy", different regions, different countries to innovate different countries business model.

Terminal sales and marketing model allows "one country one policy". We have never strictly divided the line and line lines, allowing the online and offline sales models to cross, as long as they can be sold on the line. Because of the convenience of logistics and distribution, China online sales can be vigorously implemented, overseas online sales according to local conditions, based on consumer habits and logistics capabilities to choose.

What are we going to learn from Xiaomi? Learn the marketing model. We do not absolutely exclude the internet thinking, there is no absolute certainty, but a pragmatic mentality, according to different circumstances to choose different "weapons." I have only one mind-profit.

Third, we have to control the inventory, on the other hand to plan core components development, pay attention to the normalization of construction, in order to establish a stable supply system.

1, reasonable control of spare parts inventory to ensure supply safety.

For the terminal, Sanya meeting Spirit only two, one is the profit, the other is the stock, now is still the two article. The reason why Apple phones dare to have such a large inventory, because it is a single style, and we are multi-brand, multi-style, device types involved in a lot, we dare not store so many materials. A mobile phone consists of several components, one component, and perhaps a cell phone can not be produced. I have proposed to "Isan", do not agree with "bepredicted", because after sales, we can not buy parts, how to take responsibility for the customer? Now the customer has a craving for us, but we dare not expand, in fact, can not expand, because the key components are also procured by suppliers.

2, the core components of the development and customization of planning, pay attention to the components of the normalization of construction.

We want to learn from Apple and make plans to develop some core components. We do not necessarily plan, we develop, can also cooperate in the development and production. For example, lens cooperation, we are in the design, the other side also in the design improvements, may be due to legal restrictions can not be supplied to us, but did not abandon the joint development of components. Our procurement of parts and components at a rate of one, 200 million, the volume of procurement has been very large, it should be planned, so as to establish a stable supply system.

The problem of the normalization of components, in the new year, we have to mention the agenda. such as batteries, audio devices, etc. to be normalized, in different terminals can be reused. Not only to enhance competitiveness, improve efficiency, reduce costs, the most important is the normalization, can solve the supply risk, inventory risk. One product is slow, another product can be reused. Mass replication can not only guarantee the stability of the quality, but also reduce the cost.

Four, to excellent manufacturers to learn the best, good at borrowing the advantages of Huawei Platform, cooperation and win.

1, we want to learn from all the good people, learn the excellence in order to make us become stronger.

Over the past decade, Apple has launched its introduces shelf mobile phone, which has invested a negative $5 billion and made a profit of $233.6 billion. you say you want to go beyond Apple, I agree, but I mean to go beyond Apple at a profit and service level, not the number of sales units. so company EMT meeting to your terminal set a small target, within three years, service level catch up with Apple, profit margin catch oppo/vivo, so we are very satisfied.

First, Apple has a great ecological stickiness, at present we still have a certain gap. Foreign education field, banking system, advanced medical system at home and abroad ... Only use the Apple device, with other equipment every time to convert, with this ecology, sales natural good. China's high-end people are accustomed to the possibility of Huawei's Android system is there, outside speculation that we want to do the operating system, but the operating system is not software, but the ecology. We don't, and we can't create it. In the Android ecosystem, we can first the Chinese version of the Android system's user experience to truly extreme, can compete with Apple, this is our first goal, this goal of the stickiness is also very big.

Second, we have to learn Apple's service system, you go to find an Apple store, processing method and the Huawei store is completely different. Not only is after-sales service, I think is the concept of large service. We say "customer-centric", see the customer pocket money, but we take the proper way to make money reasonably. We want to let consumers automatically take out the money, service is also the most important link.

Third, the study of excellence, do not always take our strengths than others shortcomings. You first to Oppo, vivo study of the minutes I did not forward, because you always yer oppo, vivo of the bottom, put it down to prove we "high", in fact, we are also not high. We have to learn its "high" aspect, in the insole of a little higher, it became "handsome". The second time you write the study summary, I think very deep, so the instructions "terminal really great", that is sincere. The third time is extreme, I disagree.

2, the terminal to use the advantages of Huawei's big platform, the use of all the world's good resources, improve combat capability.

First, the terminal is able to develop to today, does benefit from Huawei's big platform advantage. Compared to the technology, the next three years the terminal image technology may be achieved very advanced. Because Huawei has invested a lot of mathematicians in the study of images, it has not yet been used on the web. Company EMT out of the resolution, the image technology to concentrate on the terminal, with three years of time to reflect its high value. Another example is that the French aesthetics is actually very beautiful, and you can make good use of it. Huawei Platform output Some research results for you to use, a little to increase your ability to combat, enhance competitive advantage. You must be broad-minded and receptive, and do not think that it is the king that is sealed up.

Second, the consumer business and our business, carrier business bundle up, seize some of the advantages of resources, in some areas to achieve exclusive, there is an exclusive small market. For example, Huawei Office system can be put into the cloud service, let society use this terminal, also can use small company's office system.

BAT, Amazon, Google ... We should be open to providing cloud services that allow them to access our systems because they understand consumers more than we do, but we have a strong capacity in the Office system. We do not mean to compete with bat, Amazon, Ericsson, who has the advantage, we use who, expand the use of our mobile phones, increase mobile phone sales. Cloud service is not our goal, the sale of mobile phones is our goal.

We also need to strengthen the development of the network security system, some consumers worry about their data in the cloud, it may be exported problems. Therefore, we have made great progress in this system now, but we should also pay attention to the development and use of personal privacy, and even cooperate with the world famous developers. Because on the encryption system, we can never catch up with other people's level.

Third, for the dual-brand issue, the terminal mobile phone with the Huawei brand, the past is beneficial, because the size is small, when you become bigger, Huawei may represent conservative. Huawei's value culture is to repair the "Great Wall", the importance of solid digging foundation, the wall is good, otherwise less than 2000 years, the Wall fell. But the terminal is not necessarily such a culture, so the advantage of time is bound to have the disadvantage. Now that we have chosen to take the two-brand road, we can only continue to move forward, and constantly look at how to adapt to customer needs. If you are in a foreign country, you feel that the two-brand road can not go through, but also brand merger.

3. Harmony, mutual win, competition and cooperation.

Apple, Samsung, Huawei are the stabilizing forces that make up the terminal of the world, we want to be harmonious, win, compete and cooperate. "Put out the Samsung, the Apple," and so on, whether in public, or private occasions, can not speak at once. Who said once on a penalty of 100 yuan, CBG Human Resources department set up a number to save the fine, as your dinner, drink coffee funds. I believe you will not deliberately say so, but may be the media to exaggerate the fact of speculation, we do not use false content to glory. If you have to say something for sale, I understand it, but avoid too many enemies.

Why can't you just burn money like an internet company? Because we have no money to burn. Why is Oppo/vivo a friend of ours? It is to earn money by commodity, we also rely on goods to earn money. Who are our opponents? A company that burns money because it is not customer-centric, wants to monopolize the market by burning money, and then extort customers. Our aim is not to extort customers, but to make reasonable profits and help our customers grow together. So in this value system, we have to establish that Samsung, Apple, Oppo/vivo are actually a business model of friends. But friends are also allowed to compete, which is two different things.

Five, the consumer business to grow reasonably, look for the future direction of development, down and forward.

What does the information society mean? I don't know, I can't feel it. Carrier Business, enterprise network business How to progress, by hand is not touch, all rely on terminal. Of course, I said the terminal is not exactly referring to the phone. You put the network up, carrier BG should also share some money to you, at least share a portion of development costs, this is not the rational allocation of value to enhance competitiveness?

All future business will be authorized, but cash flow management, accounting management, audit management is still a centralized way. It's really great that the consumer BG has a very short time to develop into today's scale. These platforms will make a big contribution to you in the future, but they can also be a diversion. The terminal must have the profit, the profit must have the cash flow. Of course, the consumer business must also be reasonable growth, do not back on the profit target after the layer to pressure, there will be a pressure to deceive the production, there is a lie, or will take the rope to the customer's neck for money. We should be realistic, do not make so much profit to reduce people, the cost down, reduce the staff can be adjusted to the strategic reserves, charging and then on the battlefield, with this scientific development.

So for the future, you have to assume that you have a retreat every six months to determine your direction. Huawei has been able to come to today, that is, more than 20 years has not made a big mistake, although the small mistake every day constantly. So the terminal also do not make big mistake, walk, the more go more and more serious, gradually toward the industry leading.

Thank you again for your year's struggle, and say hello to your family members through your greetings to the global terminal staff. You have fought all over the world all year long, and the families have made great sacrifices, and medal have half of you and half of them. Send a bonus, let the family spend some more, share your happiness. Thank you!

ren: "Out of the Samsung Apple," who said a penalty of 100 yuan