Recently, Huawei founder and CEO Ren Zhengfei accepted an interview with CNBC TV channel. In the interview, he said that Huawei is open to selling chips (5G modems) to Apple, and he is still able to use Apple for decades. Appreciation is maintained for maintaining high quality products.
There have been rumors that Huawei intends to make Apple the sole customer of its 5G modem business. In this regard, Ren Zhengfei first publicly expressed his opinion in an interview with CNBC. “In this regard, we are open to Apple.” At the same time, Ren Zhengfei considered a more open position on the company's sales modem.
5G is the next generation of mobile Internet, and almost every mobile phone manufacturer is taking the top spot. However, in the interview, Ren Zhengfei did not talk about the possibility of a deal with Apple, but took the opportunity to praise Apple and its founders.
"I think Jobs is a great person in the world." Ren Zhengfei said: "Mr. Jobs's greatness is not that he founded Apple, but because he created an era, a mobile Internet era." He added that "great It is not enough to describe him, I think he is super great."
Ren Zhengfei recalled: "When Jobs died, our family was on vacation. As a fan of Jobs, my little daughter proposed to mourn for him. We really did."
Ren Zhengfei continues to praise Apple for saying that Apple is a great company. The great thing about Apple is that it has been pushing the market to become bigger, not smaller. Apple has been selling products that are expensive and consistently high quality. It is such an ever-expanding market that has enabled many other companies to survive.
As we all know, Huawei has shifted its focus on the mobile phone business to increase its share in the high-end market in recent years, and compete with Apple and Samsung. As part of this initiative, Huawei developed its own Kirin chip and developed a modem for the 5G network. Of course, Apple's iPhone is unlikely to use Huawei's Kirin chips. After all, there are autonomous A-series chips, but 5G modems may be of interest to Apple.
The reason is simple, because Apple is in a lawsuit with Qualcomm, and Intel's 5G modem will not be shipped until 2020. Previous rumors show that Huawei is considering exporting its own 5G modem chip Baron 5000 to Apple, and only Apple customers. If the deal can be concluded, both Huawei and Apple will be mutually beneficial trades. However, Apple has refused to comment on this rumor.
In addition, in this CNBC interview, Ren Zhengfei also compared Apple's high-priced sales approach with Huawei's philosophy.
He said that Huawei actually made some mistakes. In the past, Huawei set the price of products based on production costs, and the price was relatively low. Huawei sells low-priced products for two reasons. First, Huawei's technology is rapidly developing, so it can successfully reduce the cost of production. Second, because Huawei has introduced Western management methods, Huawei's operating costs are further reduced, so products can be maintained. At the lower pricing level, this also makes it difficult for Western companies to compete with Huawei.
However, Ren Zhengfei said that Huawei has carried out a profound reflection on this point and has raised the price of its products, so many people now feel that Huawei is selling expensive. But he went on to say that as prices rose, Huawei began to have more revenue, but the company would not distribute the extra income it earned to employees or shareholders. On the contrary, Huawei will use this money to invest in universities and research, and has supported research and exploration of future technologies. In this way, Huawei's products can lead the world.
CNBC analysis believes that Ren Zhengfei’s speech marks a major shift in Huawei’s strategy.