Huawei Retail Cash Dries Up, As Senior Management Register With Head Hunters
Huawei’s splash cash has dried up for consumer electronics retailers and carriers in Australia as sales slump and senior staff register their resumes with head-hunters.
ChannelNews has been told by one executive recruitment Company that they already have four senior Huawei executives listed on their books and that despite letters and emails from their Chinese masters moral at the Australian consumer operation is “low”.
This time last year Huawei’s Australian operation was spending millions on marketing for their smartphones they were also “splashing the cash with retailers” said one employee.
Huawei founder Ren Zhengfei warned in an internal memo the company is at a “live or die moment” and advised underutilized employees to form “commando squads” to explore new projects.
Workers who fail will have their salaries cut every few months and may lose their jobs, the billionaire wrote with one Australian employee quipping to ChannelNews “He obviously has not read Australian employment laws”.
Globally the consumer division is, according to Huawei itself, its growth engine.
Accounting for 45% of its revenue last year, the business that sells phones and other gadgets has been key to the Company’s growth but after being banned initially in the network market by the Australian Federal Government and then having to tackle a ban in US Companies supplying components as well as software the Company is now desperately trying to develop a survival program that has resulted in the Company scrambling to create a potential Android substitute.
They are so desperate that company has switched to 24-hour shifts working as many as 10,000 developers across three shifts and three offices to eliminate the need for American software and circuitry.
Huawei ended up hurrying its HarmonyOS out this month, just to demonstrate it can code its own operating system, though it convinced very few people that it has anything approaching an Android alternative waiting in the wings.
Despite a series of 90-day reprieves, the latest of which came yesterday, the uncertainty caused by US sanctions has already cost the company a great deal.
Even if Huawei is eventually brought in from the cold, the impact of this summer’s upheaval will be widespread and painful claims Bloomberg. The most immediate of Huawei’s losses is the international smartphone market. The company’s internal estimates show it expects to sell 60 million fewer phones in 2019 than it would have done without the U.S. impositions.
In 2018, Huawei grew its mobile shipments by 34% to 206 million, according to IDC data, and in the first quarter of 2019 its pace accelerated to a 50% improvement while rivals Samsung Electronics and Apple both saw shrinking sales. By the second quarter, partially affected by U.S. sanctions, Huawei’s growth had been slashed to 8.3%.