& cplSiteName &

Huawei Predicts 29% Growth in 2009

Ray Le Maistre
1/7/2009
50%
50%

Chinese telecom equipment vendor Huawei Technologies Co. Ltd. believes its business will grow by almost 29 percent during 2009, just as its major rivals prepare themselves for a year of shrinking sales. (See Nokia Siemens Braced for Tough 2009 and AlcaLu's New Vision: More Convergence.)

Light Reading reported in December that Huawei and fellow Chinese vendor ZTE Corp. (Shenzhen: 000063; Hong Kong: 0763) were expecting to grow during the coming year, but neither company had stated the level of growth they were anticipating. (See Huawei, ZTE Predict 2009 Growth.)

Now Huawei has confirmed that the value of contract sales in 2008 was $23.3 billion and that it is expecting contract sales to reach $30 billion in value this year, an increase of 28.8 percent.

The figures were first reported by Chinese media outlets such as China Daily, which cited an internal email sent to Huawei's employees by the vendor's chairwoman Sun Yafang.

The reports also noted that of the $23.3 billion in contract sales in 2008, overseas markets generated 75 percent, or nearly $17.5 billion.

In 2007, Huawei's contract sales totaled $16 billion, of which 72 percent, or $11.5 billion, came from outside China. (See Huawei Sets Bumper Sales Target.)

It's possible that the proportion of Huawei's domestic contract sales could increase in 2009 as China's three major operators start to roll out their 3G networks following the award today of their respective licenses. (See China Awards 3G Licenses and China's 3G Move to Trigger Spending.)

However, the vendor is still very keen to establish itself as a major supplier to, and partner of, the major Tier 1 carriers in Europe and North America as they continue their migration to next-generation, IP-based fixed and mobile infrastructures. Huawei is already supplying network equipment to a number of European incumbent operators, including BT Group plc (NYSE: BT; London: BTA), Telecom Italia SpA (NYSE: TI), and Telefónica SA (NYSE: TEF), among others, and is renewing its efforts to break into the extensive North American market. (See Telefónica Deploys Huawei DWDM, TI Uses Huawei for NGN, BT Goes With Huawei for FTTH , Huawei Gains Optical Ground in North America, and Is Huawei Moving Closer to Nortel?)

In addition, emerging overseas markets such as India, Russia, and Brazil also offer significant prospects during 2009. (See Emerging Markets Offer Capex Hope.)

Contract sales differ from reported revenues
Of course, contract sales (the value of contracts signed with customers) are not the same as reported revenues: Over the years, Huawei's audited revenues usually come in at around 75 percent of contract sales. (See Huawei Reports 2007 Revenues of $12.5B.)

That percentage would put Huawei's actual 2008 revenues at about $17.5 billion. And if Huawei achieves its 2009 contract sales target, its revenues could conceivably come in at around $22.5 billion, a figure that could make it among the top three telecom equipment vendors globally.

While Huawei confirmed to Light Reading that the reports of the contract sales figures were accurate, it disputed claims that it is planning to transfer 15 percent of the headquarters staff to overseas locations, and cut staffing levels at its main Shenzhen site by about 5 percent.

In an emailed statement, a company spokeswoman said that "claims related to staffing movements are inaccurate. Huawei currently does not have any workforce reduction plans. Hiring and campus recruitment activities are operating as usual."

At the end of June 2008, Huawei had 87,500 staff globally.

— Ray Le Maistre, International News Editor, Light Reading

(20)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Page 1 / 2   >   >>
ninjaturtle
50%
50%
ninjaturtle,
User Rank: Light Sabre
12/5/2012 | 4:14:51 PM
re: Huawei Predicts 29% Growth in 2009
Hey I realise it is a competitive world out there but I hope US Goverment officals maintain some pressure on China's imports from North America's suppliers. If not for America the growth rate that has been acheived in China would disappear and they know it. I hope Huawei is not the sole source choice within China's growing Telecommunications build out. Free trade is good but sole sourcing is unfair free trading practices in my book.
Soupafly
50%
50%
Soupafly,
User Rank: Light Sabre
12/5/2012 | 4:14:51 PM
re: Huawei Predicts 29% Growth in 2009
Its interesting that Huawei has been able to maintain its momentum. That says as much about its staff and their hunger and motivation as it does about the lazy and disappointing muppets working for the "traditional" incumbent players.
Can the chinese continue to work their "miracle"? Unless the other vendors get there act together I think the answer has to be yes and the consequences of the miracle could be felt in a more profound and ruthless way than we have seen to-date.
digits
50%
50%
digits,
User Rank: Light Beer
12/5/2012 | 4:14:49 PM
re: Huawei Predicts 29% Growth in 2009
The Chinese carriers don't go for sole sourcing generally, especially in mobile -- Alcatel-Lucent, Ericsson, Motorola, Nokia-Siemens, Nortel, and others have all historically won business there as well as Huawei and ZTE, and will likely do so in the 3G rounds.

BUT -- I would say it's likely that Huawei and ZTE will do well, and maybe win the lion's share of the business, but that's a guess.

As for Huawei's outlook - yes, it's just a prediction at the moment, but their predictions have matched their end of year numbers quite closely so far.

Whether you want to question their end of year numbers is another matter... and remember, the $30 billion number is not revenues, it's the value of contracts signed.

Ray
bollocks187
50%
50%
bollocks187,
User Rank: Light Beer
12/5/2012 | 4:14:48 PM
re: Huawei Predicts 29% Growth in 2009
Ray,

Not true, Chinese do go for reduce vendors - national Chinese vendors. They only reason the western compnaies are there is beciuase they developed the technology first. Hu and ZTE will ge teh lines share as they have caught up to the western.

The chinese have the best products and lowest prices by far.
Sterling Perrin
50%
50%
Sterling Perrin,
User Rank: Light Sabre
12/5/2012 | 4:14:48 PM
re: Huawei Predicts 29% Growth in 2009
In optical networking, reliance on Huawei and ZTE has been sufficient for building multi-vendor networks in China. The Western vendors were pushed out of China early in this decade and, in my view, have largely given up on the Chinese market (I'm only refering to optical, not sure about other areas.

I'm curious if anyone feels this has changed. But I am not aware of any Western optical vendors targeting China for growth. Most seem to have flocked to India instead, which does not pose the same homegrown vendor challenge as China.

Sterling
Light-bulb
50%
50%
Light-bulb,
User Rank: Light Beer
12/5/2012 | 4:14:47 PM
re: Huawei Predicts 29% Growth in 2009
Woa Woa Woa, Bollocks...

Best products? Are you being serious or is there /sarc here?

I certainly hope you are not serious. Granted your statement is opinion, but how would you back your opinion by any facts that are that broad? Again I have to go back to...

1.) Where is the Technology leadership in Chinese Vendors?
2.) WRT quality and code churn how does Chinese products compare to the big 3 US vendors for Carrier Grade equipment?
3.) Are companies so focused on low cost that they ignore the rest?

... hmm
Creagh
50%
50%
Creagh,
User Rank: Light Beer
12/5/2012 | 4:14:45 PM
re: Huawei Predicts 29% Growth in 2009
Folks I think this is very impressive...one wonders will it take a nest gen. company at this stage like Intune Networks in Ireland, of course not to exclude cisco, that will be capable of competing with these guys in years to come.
bollocks187
50%
50%
bollocks187,
User Rank: Light Beer
12/5/2012 | 4:14:44 PM
re: Huawei Predicts 29% Growth in 2009

1) Sarc.
2) Copying but eventually Chinese-USA will return to help China innovator
3) actually compares quite well as they use lower technology solutions versus highly integrated ones.
4) yes very much so low cost and ignore the rest. If you make something so cheap the cost of replacement is not an issue e.e. ADSL so so very cheap.
Stefan Sip
50%
50%
Stefan Sip,
User Rank: Light Beer
12/5/2012 | 4:14:42 PM
re: Huawei Predicts 29% Growth in 2009
Perhaps I am smoking something early here on Friday afternoon in Europe, but the Huawei board often talks about Huawei being a government front, now stories are coming out about how employees are asked to pitch in to raise funds to buy Nortel and/or other activities. Huawei and its attitude toward IPR, now that Huawei is a top 5 patent filer, it is clear Huawei is innovating on its own. Now people are bringing up quality issues. When was the last time you have heard about bad quality Huawei products? In all their cap/grow or rip/replace wins, Huawei has demonstrated other attributes other than price alone. So I would think quality would be one of them.

Lastly, we can talk about Huawei for another 2 years while their revenue will double again. Forecasting 29% growth for '09 is very ambitious, but even if they do half of that, it would still be an impressive year, given the state of the industry and economy.
paolo.franzoi
50%
50%
paolo.franzoi,
User Rank: Light Beer
12/5/2012 | 4:14:40 PM
re: Huawei Predicts 29% Growth in 2009

Who are these big 3 US vendors? I count 1 - Cisco.

seven
Page 1 / 2   >   >>
From The Founder
Kicking off BCE 2017, Light Reading founder Steve Saunders lays blame for NFV's slow ramp-up and urges telecom to return to old-fashioned standards building and interoperability.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Interviews
CenturyLink: Let's Get Past SD-WAN Hype

6|23|17   |   04:02   |   (0) comments


Technology becomes a "shiny object" unless it's properly focused on solving business needs for enterprise customers, says Bill Grubbs, network solutions architect for CenturyLink. He explains to Light Reading why SD-WAN deployments have to be tailored to specific needs – and more.
Women in Comms Introduction Videos
Infinera's Sales Director Paints Tech's Big Picture

6|21|17   |   4:14   |   (1) comment


Shannon Williams, Infinera's director of sales, shares how she achieves work's many balancing acts -- between her role and the broader company, today and tomorrow's tech and more.
LRTV Custom TV
SD-WAN Innovation & Trends

6|20|17   |     |   (0) comments


Versa CEO Kelly Ahuja discusses with Carol Wilson the current status and trends in the SD-WAN market, Versa's innovation around building a software platform with broad contextualization, and the advantages that startups can bring to the SD-WAN market.
LRTV Interviews
Ovum's Dario Talmesio on 5G in Europe

6|20|17   |   02:16   |   (0) comments


At 5G World 2017, Dario Talmesio, principal analyst and practice leader on Ovum's fixed and mobile telecoms European team, explains the emerging trends amongst European operators as they prepare for 5G.
LRTV Custom TV
Putting Power on a Pedestal

6|19|17   |     |   (0) comments


ARRIS's John Ulm says a major accomplishment of SCTE•ISBE's Energy 2020 program is increased focus on power cost and consumption, including inclusion of energy requirements in operators' RFPs and RFIs.
LRTV Custom TV
Gigabit Access: The Last-Mile Pipe for All Future Services

6|19|17   |     |   (0) comments


A Gigabit access platform being deployed today must be able to deliver all types of services to an increasing number of devices. A non-blocking architecture is necessary to support the ever-increasing growth in bandwidth demand. The Huawei Gigabit access solution is based on a distributed design that is fully scalable to deliver a unprecedented performance.
LRTV Custom TV
Key Factors to Successfully Deploy an SD-WAN Service

6|19|17   |     |   (0) comments


As service providers transition their SD-WAN solution from trials and limited deployments into production at large scale, there are important considerations to successfully operationalize these solutions and realize their full potential, without adding complexity, introducing uncertainty or disrupting current business operations. Sunil Khandekar, CEO and Founder ...
LRTV Custom TV
IoT Solutions: Rational Exuberance

6|19|17   |     |   (0) comments


IoT solutions are morphing from hype into viable business opportunities. Huawei has the platform and ecosystem support to help carriers successfully address new business opportunities in the IoT space.
LRTV Custom TV
Realizing ICN as a Network Slice for Mobile Data Distribution

6|19|17   |     |   (1) comment


Network slicing in 5G allows the potential introduction of new network architectures such as Information-centric Networks (ICN) as a slice, managed over a shared pool of compute, storage and bandwidth resource. Services over an ICN slice can benefit from many architectural features such as Name Based Networking, Security, Multicasting, Multi-homing, Mobility, ...
LRTV Interviews
Ovum's Mike Roberts on 5G Uptake

6|19|17   |   04:08   |   (0) comments


Mike Roberts, research director for Ovum's service provider markets group, explains why he has boosted his 5G subscriptions forecast.
LRTV Interviews
AT&T's Hubbard on Intersection of SD-WAN & MPLS

6|15|17   |     |   (0) comments


Rick Hubbard, SVP of Network Product Management for AT&T Business Solutions, discusses how AT&T's approach to SD-WAN fits in with its overall virtualization strategy, explains how SD-WAN can improve enterprise customers' use of the cloud and addresses the intersection of SD-WAN and MPLS.
Telecom Innovators Video Showcase
Keep Connected IoT Devices Under Control With Allot

6|15|17   |     |   (0) comments


Allot AVP of International Pre-Sales, Daniel Keidar, explains how communications service providers can protect infrastructure and service availability from flooding attacks caused by malfunctioning or bot-infected devices connected to their network.
Upcoming Live Events
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Montcalm Marble Arch
November 1, 2017, The Montcalm Marble Arch
November 30, 2017, The Westin Times Square
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Netflix's Lesson in Culture Expectation Settings
Sarah Thomas, Director, Women in Comms, 6/21/2017
No Imagination: UK Chip Biz Goes Up for Sale
Iain Morris, News Editor, 6/22/2017
Kalanick Steps Down as Uber CEO
Sarah Thomas, Director, Women in Comms, 6/21/2017
Buy American: Will It Affect the Telecom Sector?
Dan Jones, Mobile Editor, 6/21/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
Animals with Phones
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.