Millet is in the Gao to the future, Huawei is pursuing profit

Absrtact: Recently, Huawei confirmed to the media that Zhu Ping, who returned overseas, will replace Weijun as the president of Huawei Terminal China, and said that Zhu Ping has become familiar with China's business in March. Huawei, which is mainly based on smartphone sales, has recently had frequent personnel changes, except

Huawei recently confirmed to the media that Zhu Ping, who returned overseas, will replace Weijun as the president of Huawei Terminal China, and said that Zhu Ping has become familiar with China's operations in March. Huawei, which is the main business of smartphone sales, has recently made frequent changes in personnel, and, in addition to Zhu Ping's appointment as the new president of China, Huawei has also appointed Xuzhichang as president of Huawei's terminal US operations, before Ming as general manager of U.S. operations.

Although Huawei has explained these personnel changes are normal reasons, Weijun retirement is due to health reasons, the United States personnel changes belong to the normal round post (in the Huawei cadre years rotation once is customary), but there are still analysis to the previous ren "instructions" associated. "Huawei consumer BG should stick to its own path and I am me," said Ren, founder and president of Huawei, at a luncheon with Huawei's consumer BG management team. Do not blindly labeled Apple, Samsung, Millet! I hope that the consumer BG do not bubble up after the victory, do not go away. So the electric dealer also does not say that the sales, must say can achieve how much profit. ”

It is still difficult to say how Zhu Ping, who is familiar with the more high-end overseas markets, has much to do with Ren's latest speech on "profit-less", but as the helm of Huawei's promises, Ren's instructions have greatly influenced the direction of Huawei's terminal development. "Glory" brand independence, its intention is to balance the electrical and public channels of products, to solve the glory and Huawei other products of the conflict between the right and left. To an independent "glory" brand in the electric business channels and millet, the charm of the Internet mobile phone companies such as "Die Knock", in sales, the Glory must be successful, six months sold 4 million. But in the result, now look, after the internet a test of water, actually calculate the account, but did not meet the "can make money" requirements. Ren on the low profit "millet mode" is in fact not satisfied with, "a mobile phone only earn 30 yuan", "online hype, the line to increase sales" (Huawei Terminal CEO Yu language), such a play is not Huawei's dishes.

Small profits but quick turnover "millet mode" is now successful, but whether the final success is still controversial, because Millet needs to constantly expand the product line, tell a variety of product stories, in order to continuously expand sales, once the sales stop growing, "millet mode" is very easy to go wrong, this is probably what Ren said "bubble", ren urgent shout Stop, It may be because he feels that the pattern is unsustainable, or because Huawei is more difficult to do. Unlike millet, Huawei terminals also have more sales of carrier channels, "glory" small profits but quick turnover is difficult to do no impact on channel sales, in addition, Huawei and millet costs and the market is also different, in order to compete for high-end mobile phone market around the world, Huawei's investment in terminal research is very high, or even more than the end of the annual profit, The cost is mainly from Huawei's traditional carrier business subsidies, in this case, the low profit or even unprofitable "millet mode" after some practice, ultimately, Ren identified as unacceptable, Huawei does not want to continue to participate in playing the game.

Millet is in Gao, want is the future, Huawei pursues is the profit, Ren to the glorious "correction" certainly has its reason. But it takes time to prove who is right and who is wrong.

The enthusiasm of Huawei's terminal strategy to cool water splashing shows that even ren is stones and less confident about how the company should respond to the impact of the Internet and initiate change, which is not uncommon among Chinese entrepreneurs, including the latest speech by Haier Zhang, In the face of the uncertain future driven by new Internet thinking, they are anxious and hesitant to face it bravely. "Many employees do not listen to us, including senior cadres," said Ren in an unprecedented media interview in Shenzhen on June 16, "so the rich experience and vision of old entrepreneurs will continue to be useful in the new wave?" is po old, or is home an old, such as a treasure?