The big digital China / Asia news this week was the expansion of the US entity list ban to include TSMC. In theory, Huawei cannot get advanced semiconductors from American companies directly or by having them manufactured with American equipment at companies such as TSMC.It’s a big deal.This was the political bombshell everyone was waiting […]
In this podcast, Jeffrey Towson discusses Huawei’s financial performance in 2019, as well as the recent fraud scandal at Luckin Coffee. He argues that Huawei’s strong financial performance is a sign of its resilience, and that the Luckin Coffee scandal is a reminder of the risks of investing in Chinese tech stocks. For example, he notes that Huawei’s revenue grew by 19% in 2019, despite the US government’s restrictions on its business.
Huawei released their 2019 financial results last week. And I had the opportunity to interview Karl Song, the VP of Corporate Communications, prior so I knew what was coming (but I got embargoed). You can see that interview here. And it was fascinating. Step back and consider what a truly crazy year Huawei had. Has […]
In this podcast episode, Jeffrey Towson discusses four options for how Huawei can respond to the US tech ban on its smartphone business. These options include fixing the supply chain, becoming a digital platform, ignoring Europe, and trying to build an anti-US alliance for smartphone operating systems. Towson argues that Huawei’s best option is to become a digital platform, as this would allow it to continue to innovate and grow its business even in the face of the US tech ban.
The Wall Street Journal (paywall) reported on a new initiative by the US government to create a competitor in telecommunications equipment. The companies involved include Dell, Microsoft and AT&T. They are calling it a 5G alternative but that is not really accurate as this technology changes fast (3G, 4G, 5G, 6G, etc.). This is about […]
I keep an eye out for digital phenomena where China / Asia is on the frontier. We’ve seen this sort of digital leadership in mobile apps, mobile payments and e-commerce. And after meeting with head of smart cities at Huawei, I am convinced we are seeing the same phenomenon in smart cities. Below is my […]
In this class, Jeffrey Towson discusses four options that Huawei could have taken to respond to the US tech ban. These options include fixing the supply chain and staying the course, becoming a digital platform, ignoring Europe and focusing mostly on China, and trying to build an anti-US alliance for smartphone operating systems. Towson argues that Huawei should have focused on becoming a digital platform, as this would have allowed the company to continue to innovate and grow.
Jeffrey Towson met with Huawei Chairman Guo Ping for lunch and learned three important lessons. First, Huawei invests heavily in human resources. Second, Huawei is agile and adaptable. Third, Huawei benefits from economies of scale.
Ok. My last take-away from my visit to Huawei HQ. Thanks if you’ve hung in this long. Take-Away #5: Huawei Is Digging In for a Long-Fight. And They Are Probably Going to Win. Chairman Liang Hua ended the press conference by saying they are both “fighting for survival” and “seeking growth”. That is a pretty […]
This Part 3 of my take-aways from my visit to Huawei HQ in Shenzhen. I got to talk with management and tour some facilities. But the key event was the press conference where Huawei released their post-US export ban financials. First, this was a pretty cool press conference. They put out their half year revenue […]