Huawei’s Richard Yu to lead cloud, AI units as telecoms giant pushes into new growth markets
- The latest move by Huawei shows how it continues to double down on new growth areas amid its struggles with US trade sanctions
- The Shenzhen-based company is China’s No 2 cloud services provider and a national champion in AI
Hou will be transferred to head Huawei’s digital power service, a unit under the Shenzhen-based company’s carrier business group that deals with telecommunications network operators.
“AI and cloud computing are the key growth areas in China over the next few years,” said Kitty Fok, managing director of tech research firm IDC China. “Putting more focus and investments in AI and cloud computing is an important strategy for Huawei to capture future opportunities.”
Huawei, the world’s largest telecoms equipment maker and China’s biggest smartphone vendor, had no further comment on Thursday about the management reshuffle.
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Cloud computing services enable companies to buy, sell, lease or distribute a range of software and other digital resources as an on-demand service over the internet, just like electricity from a power grid. These resources are managed inside data centres.
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“Yu’s co-management of the consumer, cloud and AI businesses will enable Huawei to link up its front-end [smartphones, personal computers and other devices] with its back-end services [cloud and AI],” IDC China’s Fok said.
Dubbed “Big Mouth Yu” by Chinese netizens because of his tendency to speak publicly, Yu has been vocal about Huawei’s ambition to become the world’s smartphone market leader, even when the Chinese company was a minnow in a big pond.
After taking charge of the business, he stopped providing cheap customised handsets to carriers in China, upgraded smart devices to the mid-tier and high-end segments, and abandoned the ultra-low-end of the smartphone market, which was unprofitable, according to a 2012 Weibo post from Yu.