Huawei Beats 2005 Sales Target
The annual figure, which represents the value of contracts signed and not audited revenues, is slightly above the company's target of $8 billion for 2005. It says it has experienced growth in sales of wireless networks and handsets, optical equipment, data products, next generation network (VOIP) systems, and its software and applications offerings.
And the vendor plans to ramp up by about the same level this year: It has a 2006 sales target of $12 billion, according to a Light Reading Insider report, China's Big Three Vendors Take On the World. (See Telecom's China Syndrome and Insider Analyzes China's Big Three.)
The company continued to make progress in 2005 with carrier customers at the expense of more traditional telecom equipment vendors, and is now peddling its own technology solutions in some of the sectors hot areas, such as IPTV and IMS. (See Algeria Telecom Picks Huawei, Huawei Meets Vodafone's Needs, Arcor Picks Huawei , Huawei Lands NGN Deal, Huawei, ZTE Ramp Up IP Access, Huawei Doubles Up at KPN, Etisalat, Huawei Sign MOU, Tiscali UK Unbundles With Huawei, China's 'Big Three' Eye IPTV, BT Unveils 21CN Suppliers, Huawei Lands Deutsche Deal, and Huawei, Ubiquity Ally.)
Huawei, though, didn't have everything its own way in 2005. (See BSNL Shuns Huawei.)
However, according to a Huawei spokesman no additional financial details are yet available, which will frustrate other vendors and industry analysts: They'll want to know the firm's actual revenues, which in 2004 were $3.8 billion, about 68 percent of the value of its awarded contracts.
They'll also want to know whether Huawei is still increasing the international portion of its total sales, which in the first half of 2005 accounted for 62 percent of its sales deals. (See Huawei H1 Sales Hit $4.1B.)
Growing sales outside China is a major goal for Huawei and its main domestic competitor, ZTE Corp. (Shenzhen: 000063; Hong Kong: 0763). (See ZTE Makes International Headway.)
And European telecom watchers will be keen to see if Huawei achieved its sales target for that region. In June last year the company said it was on course to triple its European sales in 2005 to $600 million. (See Huawei Plans to Triple Euro Business.)
— Ray Le Maistre, International News Editor, Light Reading