I personally think Lei Jun’s statement is one-sided. It is definitely not that more is better. It should be based on the actual capabilities of the company.
1. R&D investment determines the innovation of the company
When Lei Jun expressed this opinion, he criticized Huawei's approach and believed that Huawei invested too much in R&D every year, resulting in It's a huge waste of money, which I really disagree with.
In 2018, Huawei’s investment in research and development reached 11.3 billion euros, accounting for about 15% of the company’s turnover. This is definitely an amazing number. High investment in research and development has allowed Huawei to remain innovative in the fields of mobile phones and telecommunications providers, and has helped Huawei achieve a leading position in the industry.
Of course, we cannot deny that some of these R&D investments do not produce corresponding results due to various reasons. After all, innovation is different from imitation. Loss and failure are inevitable and cannot be considered a waste.
2. Lei Jun defended Xiaomi in disguise
Xiaomi has been known for its cost-effectiveness since its inception. Another thing that has been criticized is its lack of innovation.
No matter Lei Jun builds momentum for the product before each press conference, after announcing all the information about the corresponding mobile phone, everyone discovered that it is actually an assembly machine. Assembling various high-performance accessories together, the performance of the mobile phone will not be too bad; coupled with the consistently low price of Xiaomi mobile phones, the mobile phones have always been relatively popular.
It is really not a good thing to always focus on cost-effectiveness. The innovation of mobile phones determines the price of mobile phones. If Lei Jun continues to excuse Xiaomi from R&D expenses instead of solving Xiaomi's innovative problems; the high sales volume brought about by cost-effectiveness can only be regarded as a shot in the arm, and Xiaomi's path will definitely become narrower and narrower in the future.
3. R&D investment should still be within our capabilities
Lei Jun is right about one thing, that is, the more R&D expenses, the better.
For example, if Xiaomi really invests as much money as Huawei in research and development, what will be the result? Xiaomi's capital chain cannot withstand such great pressure and will directly break. In the end, Xiaomi will have no choice but to go bankrupt.
Large companies have the advantages of large companies, and small companies have the practices of small companies; R&D investment should still be based on reality and spend as much money as possible on R&D without affecting the company's normal operations. This is Absolutely correct.
I think it is right to express any thoughts based on my own understanding, but I should not criticize others by name. Although Huawei has invested a lot, it is now basically one of the top domestic mobile phone and communications companies, which shows that Huawei's huge investment in R&D has not been in vain. It would be ridiculous to speak freely just because of your technical background.