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Huawei says it is back to 90 per cent capacity

Huawei
(Image credit: Future)

Huawei’s founder and CEO has announced the company has already resumed more than 90 per cent of its production and development operations.

After a government ruling to allow the resumption of work at critical industries, some of Huawei’s operations restarted as early as February 3, even though most of the other parts were locked down.

Speaking to reporters, Ren Zhengfei also suggested that the company is ready to develop new products to meet new demands arising from the current environment.

Positive outlook

Huawei expects strong demand for its networking equipment form two of its key markets China and Europe as companies opt for a remote working environment due to the coronavirus pandemic. The company says it is geared up to meet the demand generated from these markets. 

However, Huawei is expecting some financial hits due to the pandemic, and has increased its R&D spend to develop homegrown solutions, as the company is still weathering sanctions from the United States. 

The world’s largest telecom equipment supplier has ensured that its supply chain is not impacted during the outbreak and continued its production line by providing protective gear to the partners.

With almost 90 per cent of the company’s 150,000 Chinese workers back to work, the company wants to keep a positive outlook despite the fact that it may have to mellow down its financial targets for this year. 

Though its CEO has hinted that without the support from the US companies it may be toppled from a market leader’s position in 3 to 5 years but he feels that US firms also need Huawei as a client to survive.

The Chinese company has been under severe pressure from the United States government for spying and alleged breach of US sanctions against Iran. The Trump administration recently passed a new law making it even more difficult for Huawei to work with the American technology companies.

Via: SCMP