Light Reading

Android & the Promise of LTE Boost Huawei

Dan Jones
LR Mobile News Analysis
Dan Jones, Mobile Editor
8/18/2011
50%
50%

Huawei Technologies Co. Ltd. grew in the first half of 2011, thanks in part to the popularity of its new and inexpensive Android phones and the promise of Long Term Evolution (LTE) for operators across the world.

The massive Chinese vendor announced this week that its revenue was up 11 percent year-over-year to 98.3 billion Chinese Yuan (US$15.4B) on operating profits of 12.4 billion CNY (US$1.9B). CFO Cathy Meng said the vendor is confident it will hit its sales target for the year of 199 billion CNY (US$31.1B). (See Huawei Reports H1 2011.) The company's device unit is expected to be one of the major drivers for growth for the rest of the year. One way Huawei is increasing its phone business is by developing less expensive IDEOS smartphones for poorer parts of the world. (See Huawei, ZTE: Global Devices With Nice Prices.) For instance, the MIT Technology Review reported in June that the vendor had sold more than 350,000 of its $80 Android phones in Kenya. This is remarkable because -- as the Singularity Hub blog notes -- 40 percent of the population in that East African country live on two dollars a day or less.

Huawei isn't merely targeting emerging markets. The vendor is also bringing its Blaze and Vision Android phones to the U.K. in September. Bloomberg reports that the company's British operation is aiming for 5 percent market share within twelve months. (See MWC 2011: Huawei Is Not Low Cost!)

Overall, Huawei has increased its 2011 smartphone sales target to 20 million. The vendor shipped around 3 million units in 2010. (See Huawei Ups Smartphone Target.)

An LTE future
On the mobile infrastructure side, LTE and other 4G flavors are becoming increasingly important to Huawei. It has been aggressively pushing its SingleRAN strategy -- base station infrastructure that supports voice, 3G, LTE and more -- to operators around the world. (See Huawei's SingleRAN Offers GSM, UMTS & LTE.)

In the first six months of the year, Huawei says it deployed over 130 SingleRAN commercial networks around the world, all of which support LTE. More than 40 of those operators that have deployed the SingleRAN technology will have launched or will soon launch LTE networks.

— Dan Jones, Site Editor, Light Reading Mobile

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
-0
50%
50%
-0,
User Rank: Light Beer
12/5/2012 | 4:55:51 PM
re: Android & the Promise of LTE Boost Huawei


Cheap - yes but who said they got no margins?


No margins is when Western companies start selling at cheap prices to compete with Chinese products. When Chinese companies sell their products they do it with profit (and they don't see their prices as 'low' either).


 

jayja
50%
50%
jayja,
User Rank: Light Sabre
12/5/2012 | 4:55:51 PM
re: Android & the Promise of LTE Boost Huawei
$1.9B profit on $15.4B sales? How is this accomplished with cheap Chinese products selling at no margin?
paolo.franzoi
50%
50%
paolo.franzoi,
User Rank: Light Beer
12/5/2012 | 4:55:50 PM
re: Android & the Promise of LTE Boost Huawei


Profits = (Revenue - COGS) [aka GM] - Opex.


If you pay lower wages and thus have lower Opex for the same GM then you end up with profits.


seven


 

From The Founder
Light Reading sits down at CES with the head of Cisco's service provider video business, Conrad Clemson, to discuss how NFV and cloud security relate to video, the challenge of managing 4K/8K traffic, the global expansion of Netflix and virtual reality.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
LRTV Custom TV
Join Us at the Digital Operations Transformation Summit

2|4|16   |   03:52   |   (0) comments


The Digital Operations Transformation Summit on February 21, 2016 at the Crowne Plaza Barcelona Fira Centre will bring together 50 senior executives to engage in a unique debate on the opportunities and challenges presented by the transformative evolving digital landscape. RSVP now at events@lightreading.com.
LRTV Custom TV
Making the Test: ADVA Ensemble Connector vs. Open vSwitch

2|4|16   |   01:28   |   (0) comments


Light Reading, in partnership with EANTC, recently tested ADVA's Ensemble Connector, which replaces open vSwitch and offers carrier-grade capability and interoperability. The test results strengthen ADVA's credibility as a provider in the virtualization space.
LRTV Custom TV
Bridging the Gap Between PoCs & Deployment in NFV

2|4|16   |   31:50   |   (0) comments


Charlie Ashton of Wind River presents the keynote at Light Reading's 2020 Vision executive summit in Dublin.
Between the CEOs
CEO Chat With Mike Aquino

2|3|16   |   17:34   |   (0) comments


The former CEO of Overture Networks, Mike Aquino, discusses why truly open virtualization solutions provide service providers with the greatest choice.
Shades of Ray
MWC: Buckle Up for 5G & the IIoT

2|2|16   |   02:28   |   (0) comments


This year's Mobile World Congress looks set to be a 5G land grab and a chance to get down and dirty with the Industrial Internet of Things (IIoT) – but what will the 5G discussions actually be about?
LRTV Custom TV
Case Study: Building China's Next-Gen TV Networks

2|2|16   |   5:01   |   (0) comments


With over 2 billion viewers worldwide, Shenzhen Media Group is one of China's largest content producers. By partnering with Huawei and Sobey, SZMG was able to modernize media operations with the Converged News Center, a production studio that is a model for next-generation workflows.
LRTV Custom TV
Quad Channel Modulator Driver with 46 Gbaud Capability from MACOM

1|28|16   |     |   (0) comments


MACOM's MAOM-003427 is the industry's first surface-mount modulator driver with 46 Gbaud capability to support next generation 200G and 400G applications.
LRTV Custom TV
Video Infographic: Validating Cisco's NFV Infrastructure

1|26|16   |   02:24   |   (1) comment


We all know that the network of the future will be virtual, but when will virtual become a reality? This video infographic covers the four key areas in which Light Reading, in partnership with EANTC, tested Cisco's NFV infrastructure: performance, reliability, multi-service capabilities and single pane of glass management.

For the full report, see

Between the CEOs
CEO Chat With Phil McKinney, CableLabs

1|22|16   |   13:36   |   (1) comment


At CES in Las Vegas, we met with Phil McKinney, CEO of CableLabs. Phil provides an update on the rollout of DOCSIS 3.1, his views on the future of open source and how consumer interest in virtual reality could affect network traffic.
Between the CEOs
Ericsson CTO on the Changing Telecom Market

1|21|16   |   10:26   |   (0) comments


At CES 2015, CTO of Ericsson, Ulf Ewaldsson, sits down with CEO of Light Reading, Steve Saunders, to discuss the changing telecom market, the new partnership with Cisco and the future of the telecom industry.
LRTV Interviews
Ireland's Data Dream

1|21|16   |   14:31   |   (0) comments


Host In Ireland president Gary Connolly tells Light Reading's Steve Saunders about the role Ireland is playing in hosting data for the world's largest organizations.
LRTV Custom TV
Brocade Keynote: Transitioning to the New IP

1|20|16   |   27:23   |   (0) comments


At 2020 Vision in Dublin, Andrew Coward, VP of Service Provider Strategy at Brocade, presents the transition to the New IP.
Upcoming Live Events
March 10, 2016, The Cable Center, Denver, CO
April 5, 2016, The Ritz Carlton, Charlotte, NC
May 23, 2016, Austin, TX
May 24-25, 2016, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Cisco's latest VNI numbers suggest the world will be using 366.8 exabytes of data on smartphones and Internet of Things devices, up from 44.2 exabytes, in 2015.
Hot Topics
Alphabet Is Serious About Google Fiber
Mari Silbey, Senior Editor, Cable/Video, 2/1/2016
Did Juniper Pay 'Peanuts' for BTI?
Mitch Wagner, West Coast Bureau Chief, Light Reading, 2/2/2016
Google's 5G Radio Ambitions Are Expanding
Dan Jones, Mobile Editor, 2/5/2016
How Data Center Outsourcing Fuels AT&T NetBond Growth
Carol Wilson, Editor-at-large, 2/3/2016
3.5GHz Startup Gets $22M for Small Cells
Dan Jones, Mobile Editor, 2/2/2016
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
The former CEO of Overture Networks, Mike Aquino, discusses why truly open virtualization solutions provide service providers with the greatest choice.
As anyone who knows me will tell you, I like to think I know a fair bit about this next-gen-comms malarkey, but there's nothing like an interview with one of the ...
Animals with Phones
Happy Groundhogs for Technology Day! Click Here
Live Digital Audio

Broadband speeds are ramping up across Europe as the continent, at its own pace, follows North America towards a gigabit society. But there are many steps to take on the road to gigabit broadband availability and a number of technology options that can meet the various requirements of Europe’s high-speed fixed broadband network operators. During this radio show we will look at some of the catalysts for broadband network investments and examine the menu of technology options on offer, including vectoring and G.fast for copper plant evolution and the various deployment possibilities for FTTH/B.