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Huawei Consumer Business Looks ‘Grim’ ‘Painful’ Future CEO Warns

The future of Huawei Technologies consumer business in Australia is under a cloud despite what their local CEO keeps telling journalists.

Sources inside the Australian operation have told ChannelNews that things are looking “grim” at the local subsidiary and that staff are already shopping resumes around.

Yesterday Ren Zhengfei the 74-year-old former China People’s Liberation Army officer turned to military language when in a leaked letter he said that the Companies consumer business faces a “painful long march,” and that US sanctions were hurting the Company.

He is urging management to create an “iron army” that can take on the US Federal Government who have been responsible for bringing Huawei’s business outside of China to its knees.

“Two bullets fired at our consumer business group unfortunately hit the oil tanks,” Ren said in his letter, without elaborating.

Major structural shifts are around the corner as sanctions threaten the survival of its cash-cow smartphone business, Ren Zhengfei warned in an internal memo seen by Bloomberg and verified by a Huawei spokeswoman.

What is of immediate concern in Australia is what will happen to owners of existing Huawei smartphones when owners are denied access to upgrades from Google and firmware updates for US made components.

China’s biggest technology company is grappling with where to go after it was blocked from buying US made or patented technology, cutting off vital components from suppliers such as Qualcomm, Google’s Android operating software AMD and Broadcom.

In Australia the Federal Government has already banned the Company from being a supplier to carriers and Government departments with several staff telling ChannelNews that they are already looking for a “new job”.

At the weekend Huawei rolled out a program aimed at delivering a new ‘HarmonyOS’ in an effort to replace Android on their hardware devices.

They also reported slower sales growth in the second quarter compared to the first as the ban started to bite, especially into a consumer business encompassing smartphones and laptops.

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