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
Against the odds, Huawei is growing its telecoms networking equipment business in the US -- that should be ringing some alarm bells for domestic vendors.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
Between the CEOs
CEO Chat With Jeff Miller, ActiveVideo

8|28|15   |   19:05   |   (0) comments


Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
LRTV Huawei Video Resource Center
Vodafone: Mobile Money Is About Customer Trust

8|27|15   |   06.36   |   (0) comments


Light Reading spoke with Vodafone's Ian Ravenscroft about the unique responsibilities and opportunities facing operators handling customers' financial transactions over the network.
Telecom Innovators Video Showcase
Palo Alto Networks on Expanding in the Carrier/Service Provider Market

8|26|15   |   07:54   |   (0) comments


Alfred Lee from Palo Alto Networks tells Steve Saunders about their new chassis-based system, the PA-7080, and how it can benefit service providers compared to legacy firewalls.
LRTV Custom TV
Global Services Forum Preview

8|25|15   |   02:36   |   (0) comments


Light Reading's CEO and Founder Steve Saunders talks about Huawei's upcoming Global Services Forum with the help of Heavy Reading's Patrick Donegan and Teresa Mastrangelo.
Telecom Innovators Video Showcase
Infoblox on DNS Threat Index

8|19|15   |   04:39   |   (0) comments


Dilip Pillaipakam from Infoblox talks to Steve Saunders about his company's core network services.
Between the CEOs
CEO Chat With Ihab Tarazi, Equinix

8|14|15   |   20:18   |   (1) comment


Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about the dramatic changes in the data center, cloud and interconnect markets and discusses the impact of SDN and NFV in the coming years.
Telecom Innovators Video Showcase
The Netformx Ecosystem

8|14|15   |   09:39   |   (1) comment


Ittai Bareket, CEO of Netformx, talks with Steve Saunders about the Netformx Ecosystem, which employs cutting-edge prescriptive analytics to help solution providers maximize profits.
Telecom Innovators Video Showcase
Versa Networks on Leveraging VNFs

8|12|15   |   07:37   |   (0) comments


Kumar Mehta, founder and CEO of stealth mode startup Versa Networks, talks with Steve Saunders about how providers can best leverage virtualized network functions (VNFs).
LRTV Custom TV
Transforming the Network Through OPNFV

8|5|15   |   7:09   |   (0) comments


Sandra Rivera, VP Data Center Group; GM Network Platforms Group, Intel Corporation, on OPNFV Arno and how the industry is coming together to accelerate the deployment of NFV and transform the network.
LRTV Huawei Video Resource Center
Huawei ONS Product Demo

8|3|15   |   6:01   |   (0) comments


Huawei shows at Open Networking Summit 2015 in Santa Clara how its SDN and NFV solutions embrace openness.
LRTV Custom TV
End-User or Enterprise Benefits to the New IP

7|30|15   |   04:27   |   (1) comment


Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
LRTV Custom TV
Network Visibility & the New IP

7|30|15   |   02:23   |   (0) comments


Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
December 2, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
Cisco's cloud and virtualization portfolio can increase business agility and innovation by building a more flexible network architecture.
Hot Topics
Verizon Hums a Driving Tune
Sarah Thomas, Editorial Operations Director, 8/26/2015
Could Market Volatility Hurt Tech IPOs?
Dan Jones, Mobile Editor, 8/24/2015
Sprint's Claure: '3 to 5 Years' to Turnaround
Dan Jones, Mobile Editor, 8/25/2015
T-Mobile CEO Plays Data Traffic Cop
Sarah Thomas, Editorial Operations Director, 8/31/2015
Like Us on Facebook
Twitter Feed
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about data center, cloud and the impact of virtualization in the coming years.
Cats with Phones
Cats Are a Smartphone's Best Friend Click Here
Whoever said cats didn't live to please their humans?