Light Reading
Chinese vendor's half year revenue jumps 11% as it touts the deployment of 130 LTE-capable SingleRAN networks worldwide

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
-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 Beer
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


 

Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
LRTV Huawei Video Resource Center
The Inaugural Optical Innovation Forum in Nice

9|2|14   |     |   (0) comments


More than 170 attendees from network operators, service providers, analyst firms, and component companies from around the world convened in Nice in June for the inaugural Optical Innovation Forum, co-produced by Huawei and Light Reading.
Wagner’s Ring
Data Centers Drive Telcos Into the Future

8|28|14   |   2:20   |   (2) comments


Data centers are at the heart of key trends driving telecom -- network virtualization, the drive for increased agility, and the need to compete with OTT providers.
LRTV Custom TV
Why SPs Should Consider Cisco's EPN

8|27|14   |   5:40   |   (0) comments


Sultan Dawood from Cisco discusses Cisco's EPN, which enables SPs to build agile and programmable networks delivering new network virtualized services using Cisco's Evolved Services Platform (ESP).
LRTV Huawei Video Resource Center
Huawei’s Showcase @ Big Telecom Event 2014

8|26|14   |   2.56   |   (0) comments


SoftCOM is Huawei's framework for telecom business and network transformation. Haofei Liu, Solution Marketing Manager, Carrier Business Group, Huawei, showcases Huawei's SoftCOM architecture in this video.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of Integrated Solutions on SoftCOM & NFV Monetization

8|26|14   |   4.43   |   (0) comments


Libin Dai, Director of Integrated Solutions, Carrier Business Group, discusses Huawei's SoftCOM and NFV monetization. Huawei believes that NFV monetization should be service-driven rather than network-driven, and that operators should have network transformation, service transformation and a compatible and collaborative ecosystem in place in order to deploy NFV.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of US NFV Lab on CloudEdge & the Future of NFV

8|26|14   |   4.06   |   (0) comments


Sean Chen, Director of US NFV Lab at Huawei, discusses Huawei's new approach to NFV in open collaboration. Huawei believes that through Proof of Concept tests, it could help operators learn and communicate with the industry more effectively. Sean believes that successful implementation of NFV should have its values reaching to end users and discusses how Huawei's ...
LRTV Huawei Video Resource Center
Huawei's Highlights @ Big Telecom Event 2014

8|26|14   |   3.34   |   (0) comments


At the Big Telecom Event in Chicago Huawei showcases its high-level strategy, the SoftCOM architecture, which helps operators reduce the cost of ownership of their network infrastructure and generate additional revenue in the ICT service environment. Huawei showcases over 30 pilot programs from across the globe, focusing on the industry-leading commercial ...
LRTV Custom TV
VeEX – Live from the Show

8|21|14   |   5:58   |   (0) comments


An overview of VeEX Test and Measurement solutions including TX300S multi-service test set with VeExpress cloud-based management system, UX400 universal modular platform supporting 100G testing, and the redesigned RXT modular platform.
LRTV Custom TV
Transitioning CE 2.0 Networks Into the SDN & NFV Era With Telco Systems

8|19|14   |   5:19   |   (0) comments


Telco Systems' Ariel Efrati (CEO) and Moshe Shimon (VP of Product Management) discuss virtualization and how the company's new Open Metro Edge solution utilizes the SDN and NFV concepts to accelerate and orchestrate service delivery through its innovative product portfolio and software applications.
LRTV Custom TV
NFV Myths: Is NFV Still Several Years Away?

8|11|14   |   1:13   |   (0) comments


Some say that NFV (network functions virtualization) is still several years away from being implemented on mobile operator networks. This isn't the case. Operators can get started on their paths to NFV now, as this short video from Skyfire shows.
LRTV Custom TV
A New Security Paradigm in SDN/NFV

7|28|14   |   02:54   |   (0) comments


Paul Shaneck, Global Director Network Solutions for Symantec, discusses the evolving virtualized network, explaining how Symantec is leading the security discussion as it relates to SDN and NFV, and helping to ensure the network is protected and compliant.
LRTV Documentaries
Sprint's Network Evolution

7|24|14   |   14:59   |   (0) comments


Sprint's Jay Bluhm gives a keynote speech at the Big Telecom Event (BTE) about Sprint's network and services evolution strategy, including Spark.
Upcoming Live Events!!
September 16, 2014, Santa Clara, CA
September 16, 2014, Santa Clara, CA
September 23, 2014, Denver, CO
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
A survey conducted by Vasona Networks suggests that 72% of mobile users expect good performance all the time, and they'll blame the network operator when it's not up to par.
Today's Cartoon
Hot Topics
Rogers, Shaw Take Aim at Netflix
Mari Silbey, Independent Technology Editor, 8/26/2014
Utilities to Pump $11.2B Into Smart Grid – Study
Jason Meyers, Senior Editor, Utility Communications/IoT, 8/26/2014
Verizon Launches QR Code Security Solution
Carol Wilson, Editor-at-large, 8/26/2014
Nokia's Maps Land on Samsung Devices
Sarah Reedy, Senior Editor, 8/29/2014
Verizon to Launch HD VoLTE in 'Coming Weeks'
Sarah Reedy, Senior Editor, 8/26/2014
Like Us on Facebook
Twitter Feed