Huawei is making a bold pivot, shifting its focus toward artificial intelligence and 5G technology as traditional telecom services like mobile connectivity and voice calls lose momentum. The company is positioning itself as a key player in the next wave of digital infrastructure, aiming to fuel growth through innovation.
At the recent Mobile World Congress in Shanghai, Huawei Deputy Chairman Eric Xu Zhijun addressed the industry’s changing landscape. After years of rapid growth, the telecom sector is now facing a slowdown, with most consumer needs already met. Xu emphasized the need for carriers to evolve and adopt fresh strategies to remain competitive. “The business environment and competitive landscape of carriers have changed,” he said.
Central to Huawei’s strategy is the integration of AI and next-generation connectivity. Xu outlined four key areas where Huawei sees growth potential:
- Meeting the demands of content creators and gig economy workers
- Enhancing access to high-definition video content
- Powering smart, connected vehicles
- Expanding fiber-optic networks to support small businesses
These moves reflect a broader industry shift. As the consumer market reaches saturation—especially in developed countries—telecom providers are increasingly focusing on business clients. The business-to-business (B2B) segment now offers the strongest growth potential, driven by digital transformation, IoT integration, and customized tech solutions.
Huawei’s emphasis on fiber-to-the-room technology targets small and medium-sized enterprises (SMEs) that rely on high-speed internet for operations like video conferencing, security, and cloud services. Likewise, its 5G infrastructure investments aim to support emerging sectors such as autonomous vehicles, logistics, and smart manufacturing.
Despite ongoing geopolitical challenges—including efforts by the U.S. and its allies to restrict Huawei’s equipment from global telecom networks—the company continues to perform well. In 2024, Huawei’s revenue is expected to hit $118 billion, thanks in large part to its growth in AI and semiconductor technologies.
The AI push is especially strategic. As traditional telecom revenues flatten, AI offers a way to cut costs and create new services. Analysts predict that AI could boost telecom efficiency by up to 25%, helping operators streamline operations and explore new business models.
Huawei’s approach signals a clear break from legacy systems. The company is choosing to lead with data-driven, AI-powered solutions designed to meet the evolving needs of today’s digital economy. Xu confirmed that Huawei is ready to partner with global carriers and tailor its offerings to meet the unique demands of each market. This isn’t just a strategy shift—it’s Huawei’s blueprint for the future.o the unique needs of each market. This isn’t just a pivot—it’s a full-scale transformation.
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