The management reshuffle comes as the phone division faces an uncertain future and could boost the company’s moves into new growth markets amid its struggles with US trade sanctions.
Artificial intelligence and cloud computing are major growth areas in China over the next few years.
Putting more focus and investments in artificial intelligence and cloud computing is an important strategy for Huawei to seize future opportunities.
Yue turned Huawei from a company that designed and manufactured phones for other brands into one of the best smartphone sellers in the world in just a few years.
Soon after being the world’s best smartphone maker, Huawei’s phone business saw a downturn due to US sanctions.
The CEO, who has worked at Huawei for nearly three decades, begins his position as head of cloud and artificial intelligence business on February 7.
The move by a successful veteran to this business unit, which was established last year, highlights the areas in which Huawei sees its future, as some of its business, especially smartphones, continues to decline due to US pressure.
(Richard Yu) Richard Yu has a proven track record with Huawei in various functions, and it is assumed that there will be greater synergy between smartphones and cloud computing in light of his presence and incurs additional responsibility.
Richard Yu’s choice comes at a time when Huawei is undergoing major changes, as he is assigned the task of determining what comes next for Huawei’s smart phone business, in addition to trying to transform the company into a giant of cloud computing and artificial intelligence, so that it competes with competitors, such as : Baidu, Tencent and Alibaba.
Huawei’s cloud computing division accounted for 16.2 percent of the cloud services market in China in the third quarter, behind Alibaba Group’s cloud unit which captured 40.9 percent of the market.
Yu has been vocal about Huawei’s ambition to become the leader in the global smartphone market, even when the Chinese company was small.
After taking over the reins in Huawei’s consumer business group in 2011, he stopped providing cheap devices intended for telecom companies in China, and upgraded smart devices to the middle and high-end segments.