by
N. Peter Kramer
‘We are not interested in the US market anymore’, Eric Xu, executive vice-president of the world’s second largest supplier of network gear by revenue. US security officials and politicians have repeatedly identified Huawei as a threat to US national security. An allegation that the Chinese company has denied. Although Huawei is doing business with 45 of the world’s top carriers, it failed to get contracts from any leading operators in the US. Huawei hired a number of senior executives from rivals as Nortel and Motorola in an effort to build a massive US research and development presence specially to target leading US carriers as AT&T, Verizon and Sprint. But a Congressional report from October last year made it even more difficult for Huawei to do business in the US.
Huawei still optimistic about its future
Huawei released its audited 2012 global financial results. The company achieved steady business growth, recording sales revenues of US$35.4 billion and net profit of US$2.5 billion. In 2012, Huawei invested US$4.8 billion, or 13.7%, of its total sales revenue into research and development (R&D).
The company has established 16 R&D centers and 28 joint innovation centers across the world.
In the next five years, Huawei forecasts a compound annual growth rate of 10%. According to Guo Ping, Huawei's Rotating and Acting CEO, ‘Telecom networks are yet to meet the requirements for ubiquitous connections - zero wait time, ultra broadband, and smart applications. In the future, ICT will continue to grow, with new opportunities coming from cloud computing, BYOD (Bring Your Own Device), and big data, and feature phones being replaced by smartphones at a faster rate. Huawei will continue to focus on its pipe strategy, integrate and develop businesses around the information pipe, and create value for customers, while achieving sustainable and effective growth."
Huawei’s full-year results, which have been independently audited by international accounting firm KPMG since 2000, are outlined in the company’s 2012 annual report. The annual report can be found at http://www.huawei.com/en/annualreport2012
Huawei abandons US but still optimistic about future
Huawei, a leading global information and communications technology (ICT) solutions provider, has given up its quest to conquer the market for telecoms network equipment in the US, where the Chinese company’s sales efforts have been blocked by security fears.
Huawei released its audited 2012 global financial results. The company achieved steady business growth, recording sales revenues of US$35.4 billion and net profit of US$2.5 billion. In 2012, Huawei invested US$4.8 billion, or 13.7%, of its total sales revenue into research and development (R&D)
By: N. Peter Kramer
