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(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. Huawei Technologies Co.’s founder Ren Zhengfei warned in an internal memo the company is at a “live or die moment” and advised underutilized employees to form “commando squads” to explore new projects. Workers who fail will have their salaries cut every few months and may lose their jobs, the billionaire said yesterday.Since May, Huawei has occupied the uncomfortable position of being both an established global technology brand and a member of the United States Entity List, which bars it from trading with American suppliers. Despite a series of 90-day reprieves, the latest of which came yesterday, the uncertainty caused by American sanctions has already cost the company a great deal. Even if Huawei is eventually brought in from the cold, the impact of this summer’s upheaval will be widespread and painful.The most immediate of Huawei’s losses is the international smartphone market. The company’s internal estimates show it expects to sell 60 million fewer phones in 2019 than it would have done without the U.S. impositions. In 2018, Huawei grew its mobile shipments by 34% to 206 million, according to IDC data, and in the first quarter of 2019 its pace accelerated to a 50% improvement while rivals Samsung Electronics Co. and Apple Inc. both saw shrinking sales. By the second quarter, partially affected by U.S. sanctions, Huawei’s growth had been slashed to 8.3%.Having successfully penetrated the European mobile market, Huawei was on a path to becoming the world’s biggest phone vendor, however the loss of Google’s Android, the brains inside its handsets, and the related Play Store app ecosystem made Huawei devices undesirable outside of China.Ren warned in his memo that redundant staff need to find a way to make themselves useful.“They either form a ‘commando squad’ to explore new projects -- in which case they could be promoted to company commander if they do well,” he wrote. “Or they can find jobs in the internal market. If they fail to find a role, their salaries will be cut every three months.”Read more: Huawei’s Founder Wants an ‘Invincible Iron Army’ to Fight U.S.The consumer division is, according to Huawei itself, its growth engine. Accounting for 45% of its revenue last year, the business that sells phones and other gadgets is instrumental to Huawei’s future health, and it’s taken a substantial reputation blow from all the allegations and sanctions levied against Huawei. That won’t be repaired anytime soon.On the same front is Huawei’s loss of software engineering time as it’s had to scramble to create a potential Android substitute. In the wake of the U.S. ban, the company switched to 24-hour days, working as many as 10,000 developers across three shifts and three offices to eliminate the need for American software and circuitry. Huawei ended up hurrying its HarmonyOS out this month, just to demonstrate it can code its own operating system, though it convinced very few people that it has anything approaching an Android alternative waiting in the wings.Less quantifiable but still significant will be the talent drain that Huawei suffers from the tarnishing of its global reputation and the overwork that’s resulted from its efforts to recover. The company has downsized its workforce in response to its new circumstances.Ren wrote that the company’s priorities are for employees to make “meritorious deeds” and for management “to promote outstanding employees as soon as possible and infuse new blood to our organization.”In explaining the fresh extension to Huawei’s reprieve from U.S. sanctions, Commerce Secretary Wilbur Ross said that some American telecoms are “dependent” on Huawei tech and need time to wean themselves off it. So while the Washington authorities are giving Huawei a little more breathing room, the company’s situation is still very much precarious, as its founder has indicated.Without the U.S. trade intervention, Huawei would be threatening Samsung for the crown of the world’s most prolific smartphone vendor and it would be capitalizing on its lead in 5G technology instead of counting the cost of lost customers. The company remains in a strong position, but the dynamism of its growth and the luster of its cutting-edge technology have both been diminished by the measures taken by the American government.To contact the reporters on this story: Vlad Savov in Tokyo at firstname.lastname@example.org;Gao Yuan in Beijing at email@example.comTo contact the editors responsible for this story: Edwin Chan at firstname.lastname@example.org, Peter Elstrom, Vlad SavovFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Trump said Cook "made a good case" that tariffs could hurt Apple, given that Samsung's products would not be subject to those same tariffs. Tariffs on an additional $300 billion worth of Chinese goods, including consumer electronics, are scheduled to go into effect in two stages on Sept. 1 and Dec. 15.
Samsung's news "phablet" device, the Galaxy Note 10, is being launched tomorrow - but a lot has already leaked ahead of the event in New York. The company announced Wednesday's launch event earlier this year with a teaser invitation featuring a stylus ahead of a small camera, suggesting the event will be for the successor device to the Galaxy Note 9. Whether Samsung has managed to keep any details under tight wraps or whether the whole thing has been spoiled by eagle-eyed leakers is still up in the air.
SEOUL, Korea--(BUSINESSWIRE)-- Samsung Electronics Co., Ltd., the world leader in advanced memory technology, today announced that it has begun mass producing 250-gigabyte (GB) SATA solid state drive (SSD) ...
SEOUL, South Korea--(BUSINESSWIRE)-- Samsung Electronics Co., Ltd., the world leader in advanced memory technology, today announced that it has begun mass producing the industry’s first 12-gigabit (Gb) ...
Stocks finished slightly lower on Friday, backing away from all-time highs hit earlier this week, after a better-than-expected employment report in June partially rolled back investors' expectations for multiple rate cuts this year. The S&P 500 was down 0.2% to finish around 2,991. The Dow Jones Industrial Average shed 41 points, or 0.2%, to end near 26,925. The Nasdaq Composite was down 0.1% to end around 8,162. For the week, Dow was up 1.2%, S&P was up 1.7%, and Nasdaq up 1.9%. The S&P snapped a five-day winning streak, and the Dow ended its four straight session of gains. The U.S. economy added 224,000 jobs in June, above the 170,000 expected by analysts. Semiconductor stocks were on the backfoot on Friday after South Korean chip maker Samsung Electronics Co. Ltd. reported a 56% drop in its second-quarter profits.
Samsung isn't about to leave the doldrums any time soon. The company warned that its profits were likely to slump in the second quarter, dropping about 56 percent year-over-year to roughly 6.5 trillion won (just short of $5.6 billion). That doesn't sound great, but it could have been worse -- a one-time payment from an unnamed customer buoyed Samsung's income. The company reportedly asked Apple for compensation after its OLED display orders didn't meet minimum levels, although that hasn't been confirmed.
Samsung is holding a special event on Sunday, 7 August - which the invite suggests will be a launch event for the new device in its "phablet" range. The invitation prominently features a stylus, suggesting the event will be for the successor device to the Galaxy Note 9 - which is widely expected to be called the Galaxy Note 10. Samsung's Galaxy Note range has recovered following the disastrous launch of its Note 7 device, which was recalled after numerous devices caught fire due to faulty batteries.
AT&T has cancelled early orders for the Samsung Galaxy Fold. Tom's Guide first reported the cancellation, noting that AT&T said the Galaxy Fold would be available again to order as soon as Samsung announces a new launch date. The Samsung Galaxy Fold was originally scheduled to launch on April 26.
It’s been less than three weeks since President Donald Trump restricted the Chinese tech giant’s access to Google’s Android operating system and already, Huawei’s smartphone business appears to be losing ground in Europe, a critical growth market. Consumer fear that Huawei phones will quickly become out of date has meant demand for its devices has “dropped off a cliff,” Ben Stanton, a U.K.-based analyst at Canalys, said by phone, citing discussions with phone carriers, retailers and distributors.
Shares of Advanced Micro Devices Inc. are up more than 5% in premarket trading Monday after the company announced a multi-year strategic partnership with Samsung Electronics Co. Ltd. . Through the partnership, which is focused on low-power, high-performance mobile graphics, Samsung will license AMD's intellectual property in graphics as it works toward enhancing mobile applications and smartphones. AMD will receive license fees and royalties as a result of this arrangement. The stock has risen 48% so far this year, as the S&P 500 has gained 10%.
SEOUL, South Korea (AP) — Samsung Electronics' Vice Chairman Lee Jae-yong has vowed to keep up robust investments in key businesses as South Korea's leading company weathers slowing demand and the impact of trade clashes between Washington and Beijing.