The Counterattack Begins! Following Alibaba, Huawei’s India Revenue Target Is Rumored To Be Cut In Half And Plans To Lay Off 70%
I believe you have seen these two pieces of news in the past few days. Registered users of WeChat India’s mobile phone account have been unable to log in normally. A court in New Delhi, India, summoned more than ten people including Alibaba founder Jack Ma...
The reason behind this incident has to start on June 29. At that time, relevant Indian authorities announced the ban on 59 Chinese applications such as TikTok, WeChat, Eggplant Express, and UC browser on the grounds of security issues. There was another uproar.
Today, following Alibaba's layoffs, Huawei's counterattack is coming! According to the latest foreign media reports, several people familiar with the matter said that Chinese telecom equipment manufacturer Huawei has cut its 2020 revenue target in India by as much as 50% and plans to lay off 60%-70% of its staff, but does not include R&D and global services. Center staff.
According to industry insiders, India has now joined the ranks of the United States and Britain. According to sources, India has banned Indian state-owned operators from purchasing equipment from Huawei and ZTE, and without affecting consumer services, has informally promoted private telecom operators to gradually replace Chinese equipment.
It is understood that Huawei India’s revenue in 2017 was US$1.2 billion, but later due to the “anti-China business” and the impact of the tight financial situation and declining demand of the Indian telecommunications company, its revenue fell year after year. According to people familiar with the matter, Huawei currently has set its 2020 revenue in India at between 350 million and 500 million U.S. dollars. It is important to know that the previous target is about 700 to 800 million U.S. dollars.
People familiar with the matter also revealed that Huawei employs close to 700 employees in India, as well as hundreds of employees hired by third-party companies. However, because telecom operators have no new projects or clear new business, Huawei intends to reduce the number of employees involved. Network support, on-site deployment, outsourcing and sales departments; in fact, this is not the only Chinese supplier affected. According to reports, another Chinese equipment manufacturer, ZTE, has also been affected by recent events. The number of employees in India has been reduced by nearly 30% to nearly 600.
So here comes the question. In the face of all the above situations, India is facing the big advantages or the disadvantages? I want to tell us the answer through the data. First of all, there is no doubt that Huawei's current achievements in the 5G field are unmatched. According to the latest data from the market research organization Dell'Oro, in the first quarter of 2020, in the 5G communications equipment market, Huawei ranked first with a market share of 35.7%; and in the number of 5G patent applications, Huawei is also far ahead. Among the 21,571 5G standard patent applications in the world, Huawei occupies 3147. In terms of 5G commercial contracts, although Huawei has not disclosed the latest data, it is certain that it is still in the forefront of the industry.
In addition, Huawei still occupies 40% of the global 5G infrastructure construction. For India, its largest operator, Reliance Jio, uses Samsung’s 4G network, while the other two major operators Bharti Airtel and Vodafone’s suppliers include Huawei, and Huawei’s equipment occupies three of Bharti Airtel’s existing network. One in 40% of the Vodafone network.
It can be seen that India is dependent on Huawei to a certain extent, and from the perspective of 5G strength and technology, Huawei is ahead of other industry competitors. I think that in the case of the global development of 5G networks, anyone All hope to have such a powerful partner. Therefore, if Huawei really withdraws, it will cause a big blow to the communications industry in India.
Because of some objective event factors, Chinese mobile phone manufacturers' business in India will inevitably be affected to varying degrees. Therefore, it can be predicted that in addition to Huawei, other domestic mobile phone manufacturers will also take action.
What is your opinion?