Huawei's $11 billion huge R&D investment value is not worth it?

The astounding Huawei is unique in the Chinese IT industry and even in the entire Chinese business sector.

It is currently the only big player in the world that is important in the communications industry, IT industry, and consumer terminal industry. However, its brand image in the Chinese market is very fragmented.

1. For most entrepreneurs in China, Huawei is a fascinating legend. The mountain is the end, and its founder, Ren Zhengfei, is an object of worship.

2. For practitioners in the IT circle and the communication circle, Huawei is an unpleasant existence. If you have money, you can't get used to it, but you can't take it.

3. For most of the people who have heard of Huawei but don’t know much about it, Huawei is a national pride, crushing the beautiful imperialism and glory for the country.

4. For ordinary Huawei employees, this is an owner who makes them feel obsessed and unable to spit.

In the past year, the praises and negatives that occurred in Huawei were particularly prominent. They were on the cusp of the year, and they were the national heroes who led the global 5G standard. Later, they created the “34+” ruthless employers. However, Huawei does not seem to care about it. It is a matter of fact, letting the wind blow in the southeast and northwest of the city, without explaining it, making money.

On March 31, Huawei officially released its 2016 financial report. Although many of these figures have been known from the beginning of the year, revenues increased 34% year-on-year to 512.6 billion yuan (US$75.1 billion) and R&D investment reached 76.4 billion yuan (11 billion). The two figures of the US dollar still make this financial report a hot topic.



Many people feel that it is really rich and daring to invest!

It is also said that Huawei's net profit increased by only 0.4% year-on-year, and the increase in production did not increase. Huawei has invested heavily in research and development. It is a bit of anxiety in the future when the operator market is weak, and the cloud is delayed. Mapping.

In fact, Huawei's 2016 profit margin is 7.1%, and the data is very healthy. From the perspective of the Global 500, it is also a good profit margin.

More challenges come from within. Some employees asked why Huawei invested so much money in research and development. What did it do? Value is not worth?

Huawei’s rotating CEO Xu Zhijun’s statement is: “Huawei’s R&D investment in one area is bigger than others. It can only be compared with Apple’s Samsung. The wireless field is less than Ericsson, and it’s less pitiful in the router field than Cisco. But the total is a big plus. You can't say to B R&D investment as to C, and to C's R&D investment as to B."

“Huawei’s R&D investment is over-investment?

Will Huawei continue to invest in this kind of R&D investment?

Today, when the global traditional high-tech enterprises are being squeezed by the Internet elites of all sizes, the hard-working days, will such a large investment become a burden for Huawei?

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