Huawei founder Ren Zhengfei warns against complacency as annual sales cross US$100 billion, says rivals could catch up in two years if it does not stay sharp

Huawei Technologies plans to reform its traditional network equipment business after its consumer products group became the biggest contributor to record sales last year, part of an ambitious goal of tripling total group revenue within five years.

The world’s No 1 telecoms equipment provider will focus on reforming its carrier business unit this year because that business segment has “first and foremost” been under attack by the US, Huawei founder and chief executive Ren Zhengfei said in an internal meeting on March 29.

“Eric Xu Zhijun said our company has only led the world in telecoms equipment products for one to two years. If we don’t have special products, if we don’t have products that are sharp and irreplaceable …[our competitors] will catch up in two years,” said Ren, according to a transcript of the meeting shared by Huawei’s official online community. Xu is one of Huawei’s rotating chairmen.

Huawei’s move comes after its consumer business saw a surge in sales last year, reflecting gains that Chinese smartphone brands have made both at home and abroad.

Last week, privately-owned Huawei reported a 19.5 per cent jump in annual revenue to 721.2 billion yuan (US$107 billion) in 2018, capping a year in which it came under siege as the US government sought to block use of the company’s 5G gear in mobile networks around the world. Revenue for Huawei’s carrier business was roughly flat at 294 billion yuan, while its consumer business revenue surged 45 per cent to 348.9 billion yuan.