This might sound like a ridiculous U-turn considering that only the other day we heard about Huawei supposedly bowing out of the US smartphone market, but Beijing News is now reporting that Huawei’s Executive Vice-President, Eric Xu, was misunderstood he when spoke at the company’s analyst summit on Tuesday.
Instead of talking about leaving the US, Mr Xi was apparently discussing anticipated growth in developed countries which did not include the United States. A spokesperson for Huawei attempted to clarify the situation by stating that “this does not mean that Huawei [will] abandon the US market.” Instead the company supposedly plans to continue to work on the US market, despite the fact that the brand is struggle to gain traction.
I can’t say that I’m totally convinced that this U-turn isn’t simple a face saving stunt, after all the original statement seemed pretty straight forward and the company is still struggling to shake off accusations of some subversive tactics and spying for Chinese intelligence services.
Not to mention that the company’s R&D personnel have been cut from 800 to 500 in the US, and the sales team has been shrunk as well. So it appears that Huawei is at least shrinking parts of its operation in the US, if not abandoning it completely.
It’s a bit of a confusing situation to say the least, and it wouldn’t surprise me if another statement or two will be require before we really understand exactly what Huawei has planned for the US market.