Huawei Technologies Co Ltd is but one of the many brands that have suffered due to the recent Coronavirus outbreak. Although the situation may finally be stabilizing soon as workers have returned and operations have resumed, the CEO of the company is still expecting a financial hit. Despite this, the company is working around the clock and is also expanding its research and development budget.
For those unaware, China was recently hit with the viral pandemic which had led the local government to shut down production lines, offices, and factories. This had affected various industries, especially the smartphone market which had most of its assembly lines in China. Huawei was one such brand and had complied with the government order as well. Now, the company is working around the clock, with thousands of employees running overtime hours.
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According to Ren Zhengfei, CEO and Founder, Huawei is planning on boosting its research and development despite the slump in finances in early 2020. The plans will surge the R&D budget of the Chinese tech giant by $5.8 billion to more than $20 billion. Huwaei is also one of the largest telecom equipment providers and has been motivated to further develop new technology, not only for profit but to combat the current crisis.
Ren stated that “Over 20,000 scientists, experts, and engineers worked overtime during the Lunar New Year holiday because we’re racing to develop new [technologies].” In other words, while the sudden halt in a production put a pause on many OEMs, Huawei plans to work through the financial hit and improve upon its offerings. The company had initially resumed operations back in 3rd February 2020, earlier than most other brands after being labeled critical by the Chinese government. This has offered it a front foot over its competitors and lowered its downtime overall.
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(Source)
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