Huawei's Chip Slip
Huawei Technologies Co. Ltd. 's finances are in the spotlight at the moment, with the company unveiling slimmer margins for 2011 in its most recent annual report and then explaining a change in financial reporting methodologies. (See Huawei's Margins Squeezed in 2011 and The Number's Up for Huawei.)
And it seems the company's coffers won't be boosted this year by any returns from its HiSilicon Technologies Co. Ltd. mobile chip subsidiary. (See HiSilicon Unveils Multimode LTE Chips.)
During an analysts’ briefing in Shenzhen, China, on April 25, Deputy Chairman Eric Xu said Huawei would make "a substantial amount of money" from selling its chips to other companies.
But the company walked that back the following day, when Chief Marketing Officer Shao Yang emailed journalists and analysts to say that HiSilicon would be making chips only for Huawei devices.
"We do not anticipate reselling these chipsets," stated the CMO. "We value our relationships with partners such as Qualcomm Inc. (Nasdaq: QCOM) and Texas Instruments Inc. (NYSE: TXN)."
— Robert Clark, freelance editor, special to Light Reading