bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

helpersCheckIsPostiesArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

moreOnThisArticles

urlAlias

commentCount

authorLocations

authors

corrections

sponsorType

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

socialHeadline

headline

flag

firstTopic

glossary

flattenTypeIds

publishedDate

additionalInfoBoxes

quizIds

images

image

relatedLinks

relatedNewsletters

__typename

createdDate

sponsor

paywallTypes

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

Zen Soo

Ren Zhengfei, founder and chief executive of Huawei Technologies, said the company should learn from Apple to set higher prices so that “competitors will be able to survive”, as the Chinese firm remains on the defensive against US accusations that its products could be used for spying.
Huawei, the world’s largest telecommunications equipment supplier, has long been criticised for undercutting rivals by offering its products at cheaper prices to win contracts. Now, Huawei is refuting claims that it would sell 5G mobile network gear below market prices.
“We will not try to squeeze the market by lowering our prices,” said Ren, according to a transcript of his interview with CNN in March.
“In spite of all the pressure we are currently under, we still sell our products and solutions at high prices to maintain good order in the market.”
Huawei fights back against claim in research paper that it is government funded and controlled
Huawei’s network gear sales to telecoms carriers have come under pressure in recent years as the 4G market has matured and as the US drummed up its campaign against the company, which is accused of supplying equipment that could be used to aid Chinese intelligence activities.
The US has applied pressure on its allies in Europe, such as Germany and the UK, to exclude Huawei from upcoming 5G network roll-outs. Huawei, which has gone from a scrappy upstart in Shenzhen selling telephone switches to become the global front-runner for 5G mobile systems in three decades, is largely cut off from selling its equipment to the large US telecoms market.
Earlier this month, Huawei said it was expecting growth of at least 10 per cent for its carrier business this year, as mobile network operators prepare to launch commercial 5G mobile services in 2020.
Huawei has already secured 40 contracts to build and operate 5G mobile networks around the world, according to rotating chairman Ken Hu Houkun last week during the company’s Global Analyst Summit at its headquarters in Shenzhen.
Malaysian PM Mahathir Mohamad’s visit to Huawei in Beijing seen as sign of ‘endorsement’
Those include 23 contracts in Europe, 10 in the Middle East, six in the Asia-Pacific and one in Africa.
Ren said the US pressure on Huawei “makes him the most excited” because the situation has prompted the company to be “united as one” to “make better products”.
“This has eased the burden on me, personally, because our people are working harder than ever before,” he said. “They’re out there clamouring louder than I am, so I can relax a bit and have more time to speak highly of the US.”
He also described Huawei as the “poorest tech company in the world” because it reinvests much of what it makes in research and development.
We will not try to squeeze the market by lowering our prices
Ren Zhengfei, Huawei founder
In July last year, the company announced an increase in its annual research and development spending to between US$15 billion and US$20 billion.
While he did not believe that Huawei’s survival was at risk, Ren said the US will not benefit from restricting American technology companies from selling their products to Huawei.
“Huawei is the third largest buyer of chips in the world,” he said. “Without us, the financial reports of many US companies will worsen, resulting in huge fluctuations in the stock market.”
Still, Huawei has “other options” to buy components from, so it would not be affected by any potential US export ban, according to Ren.


Huawei chief spells out China hi-tech resilience

Trump cannot hope to solve a China ‘problem’ he has misdiagnosed

Tech war: Nvidia CEO says Huawei has everyone ‘covered’ if US chip ban on China stays

Chinese tech champions from Tencent to Unitree boost European ties amid US trade war

Huawei Technologies

Founder Ren Zhengfei says Huawei should learn from Apple – and set higher prices

Huawei Technologies founder and chief executive Ren Zhengfei says the company, the world’s largest telecommunications equipment supplier, will not try to squeeze the global market by lowering prices on its products. Photo: Agence France-Presse

Huawei Technologies founder and chief executive Ren Zhengfei says the company, the world’s largest telecommunications equipment supplier, will not try to squeeze the global market by lowering prices on its products. Photo: AP

Five Eyes spies play down split as ‘Huawei leak’ roils UK government

Britain will allow Huawei a restricted role in building parts of its 5G network, a report says. Photo: AFP

epa07499485 A handout photo made available by the UK Parliament shows British Prime Minister Theresa May (C) with David Liddington (L) Minister for the Cabinet Office and Chancellor of the Duchy of Lancaster, and Philip Hammond (R) the Chancellor of the Exchequer after she delivered her Brexit Brussels summit statement in the House of Commons in Westminster, central London, Britain, 11 April 2019. Media reports state that Theresa May defended in Parliament the new deadline of 31 October 2019 set for Britain's exit from the EU following the EU heads of State summit in Brussels on 10 April 2019. EPA-EFE/JESSICA TAYLOR / UK PARLIAMENT / HANDOUT MANDATORY CREDIT: UK PARLIAMENT JESSICA TAYLOR HANDOUT EDITORIAL USE ONLY/NO SALES HANDOUT EDITORIAL USE ONLY/NO SALES

FILE PHOTO: Satellite dishes are seen at GCHQ's outpost at Bude, southwest England June 23, 2013. REUTERS/Kieran Doherty/File Photo

Huawei fights back against claim in research paper that it is government funded and controlled

The Logo of Huawei is seen at its showroom in Shenzhen, China, in March. Photo: Reuters

A surveillance camera is seen in front of the Huawei logo outside its factory campus in Dongguan, China, in March. Photo: Reuters

Malaysian PM Mahathir Mohamad’s visit to Huawei in Beijing seen as sign of ‘endorsement’

Malaysian Prime Minister Mahathir Mohamad, centre, is accompanied by Huawei Technologies founder and chief executive Ren Zhengfei, third from right, and other officials as he visits the company’s Executive Briefing Centre in Beijing on Thursday. Photo: AP

Huawei Technologies founder and chief executive Ren Zhengfei, right, explains the company’s 5G network products to Malaysian Prime Minister Mahathir Mohamad, left, in Beijing on April 25, 2019. Photo: AP

UK PM Theresa May to ban Huawei from providing ‘core’ parts of Britain’s 5G network

Small toy figures are seen in front of a displayed Huawei and 5G network logo in this illustration picture, March 30, 2019. REUTERS/Dado Ruvic/Illustration

Jeremy Fleming, director of Government Communication Headquarters (GCHQ), United Kingdom's intelligence, security and cyber agency, delivers his address at the 35th IISS Fullerton Lecture on the topic of 'Cyber Power' in Singapore on February 25, 2019. (Photo by Roslan RAHMAN / AFP)

Huawei will be allowed to supply some ‘non core’ technology to British phone companies. Photo: Bloomberg

Tech

Big Tech

Business

China Business

World’s largest telecoms equipment supplier expects higher prices to help ‘maintain good order’ in global market


Ren Zhengfei says Huawei will sell its products at high prices ‘to maintain good order’ in the global telecoms network equipment market.


China technology

Infrastructure