According to Bloomberg News, Huawei founder and CEO Ren Zhengfei recently sent a letter to all employees. In his letter, he said that Huawei should “reorganize” within three to five years and create an invisible “iron army” that will help to cope with US sanctions. After Huawei was listed on the US Department of Commerce on May 16th, US companies such as Google, Qualcomm, Micron and Intel stopped establishing business with Huawei. Affected by this, some suppliers in other countries have also reduced their business dealings with Huawei.

As a result, Huawei may not be able to use the Android system, Micron’s memory chips, ARM Holding’s chip design and other so-called “American products.” However, Huawei has already launched its own Hongmeng OS. If necessary, it will be an Android replacement in the future, and Huawei’s HiSilicon will design its own processor and modem chip (manufactured by TSMC).  However, the Huawei HiSili Department is still using the software purchased by the United States to design and develop its own chips. Therefore, the current situation facing Huawei is still very serious. However, Huawei has developed the Kirin 990 processor, which is expected to be powered by Huawei Mate 30 series devices.

Although the US ban still affects Huawei, Huawei’s mobile phone shipments in the first half of this year are still up against the trend by 24%.

Although the Trump administration once listed Huawei on the entity list for reasons of national security, Bloomberg’s report pointed out that some people believe that the reason why the United States “rejects” Huawei is that it lags behind Huawei in 5G deployment. The next-generation communication technology represented by 5G will bring many possibilities for the establishment and expansion of new services, and the government can continue to revitalize the national economy with 5G technology. Regarding the US ban, Ren Zhengfei said that “the United States does not use the most advanced 5G technology. This may make it fall behind in the field of artificial intelligence in the future.”

“We must reorganize under difficult and difficult conditions and build an invisible ‘iron army’ to help us achieve victory. We should complete the reorganization within 3-5 years.” – Ren Zhengfei, founder and CEO of Huawei

In 2018, Huawei delivered 60 million units in the first quarter, only after Samsung and Apple. In the first quarter of this year, Huawei’s mobile phone shipments were 59 million mobile phones, a year-on-year increase of more than 50%. In three months, Huawei replaced Apple in the second place in the mobile phone shipments ranking. It can be said that Huawei’s market performance is far better than market expectations. According to the latest data, Huawei’s mobile phone shipments in the first half of the year were 118 million units, a year-on-year increase of 24%.

In the next half of 2019, Huawei may become more and more difficult. Ren Zhengxuan also saw this and informed all Huawei staff in the form of letters.