Chapter 41 Technology research and development regardless of cost

Nowadays, in the process of globalization, there is more and more such a trend: only by relying on the power of scientific and technological progress and innovation can the accumulation method of social wealth of the whole country be rapidly changed; only by mastering the power of core technology can the status of the whole nation and country be quickly changed .A country that relies on and imitates other people's technology will never be recognized by the world. Huawei is famous for "daring to spend money" in technology research and development.Huawei's technological advantages are also closely related to its continuous, large-scale, and cost-free R&D investment model.Huawei insists on high R&D investment to enhance its independent innovation capability. In the past 20 years, its annual R&D investment has accounted for 10% of sales revenue, and its R&D investment is mainly used in cutting-edge technology, core technology and basic technology research.Huawei even wrote "10% of sales for research and development funds" into the "Huawei Basic Law" issued in 1998, in order to maximize the growth of the enterprise at a certain profit level: "We must achieve and maintain a higher level than the industry. The average growth rate and the growth rate of major competitors in the industry, in order to enhance the vitality of the company, attract the best talents and achieve the best allocation of the company's various operating resources. In the electronic information industry, either become a leader or be Elimination, there is no third way to go."

In the context of the global economic downturn, Huawei still insists on increasing R&D investment. In 2009, R&D expenses reached RMB 13.3 billion, a year-on-year increase of 27.4%. In the face of pressure, Ren Zhengfei made an oath: "At the juncture of the survival of the national communication industry, we must do our best to develop from the bottom up in fair competition, and never retreat or bow our heads"; "We will not be defeated by those powerful companies. "; "Ten years later, the world's communications industry will be divided into three parts, and Huawei will account for one part."With these beliefs, Ren Zhengfei's management appears tough and almost paranoid.

As a high-tech enterprise, Huawei has always adhered to the commercial success of the market as its orientation since its inception. All investment and management improvements are closely centered on the commercial success of the product market. Only technological innovation.This kind of blindly arrogant innovation is tantamount to suicide for companies without funding sources. With the development of communication technology and changes in the communication market, Huawei has followed closely with its self-developed technologies and products. In 2004, Huawei introduced a WCDMA distributed base station to the market. Compared with traditional base stations, operators can save 30% in annual operation/operation and maintenance costs, including site rent and electricity charges, bringing value to customers while reflecting The competitiveness of the product has been improved, and it has won the praise and choice of customers.

On January 7, 2011, the 44th International Consumer Electronics Show (CES) opened in Las Vegas, USA. Huawei released a variety of new terminal products at the exhibition. According to Yu Chengdong, vice president and chief marketing officer of Huawei, Huawei has unveiled a variety of mobile phones and tablet products such as IDEOS series X5, X6, and S7 at this exhibition. Among them, IDEOS X5 is the key first product and one of the flagship products of Huawei's terminal IDEOS series. , it is positioned as a mid-to-high-end business machine and advocates the concept of "simple business". It is equipped with Android2.2 operating system, equipped with a 3.8-inch touch screen and a 5-megapixel camera. It will be shipped in many countries in the Asia-Pacific region in the first quarter of 2011. It will be launched in China in the spring; referring to another flagship product IDEOS S7, Yu Chengdong said that the S7 has been launched in Europe, Australia and other markets one after another, and has even been favored by Best Buy, the largest consumer electronics retailer in North America, as its main new product. During the Christmas season, S7 became the best-selling product of the season.

In the Chinese market, in 2010, Huawei's mobile broadband shipments exceeded 5 million units; Huawei's converged terminal shipments exceeded 15 million units, and the market share of both continued to maintain the first place; the cumulative market share of mobile phone products ranked among the top five in China, More than 15 million units, of which the share of Android smartphones is absolutely leading in China.