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Optical/IP

Huawei Set for $5B in 2004

Huawei Technologies Co. Ltd. is set to hit revenues of more than $5 billion in 2004 and $7 billion in 2005, according to a marketing executive at the vendor's mobile handset division.

If Huawei achieves that 2005 target, the vendor's sales would have more than doubled in two years, as it achieved revenues of $3.2 billion in 2003.

And Alan Hsu, the marketing director for mobile terminals, told media representatives at a trade show in Hong Kong that international sales could account for more than half of 2005's sales, or $3.5 billion.

He said international sales were expected to be about $2 billion this year. That would be almost double the 2003 figure of $1.05 billion, and almost four times 2002's $552 million.

This tallies with figures given to Light Reading by Johnson Hu, Huawei's vice president in charge of international development. Hu said that Huawei's international sales topped $1.5 billion in the first three quarters of 2004, and went on to say that Huawei had a target of $10 billion in overall sales by 2008.

It's worth pointing out that the sales figures cited by Huawei are often the value of contracts it's won rather than the amount that it's invoiced customers. In 2003, its booked sales were $3.8 billion and its billed sales were $3.2 billion (see Huawei Reports Record Revenues and ZTE Doubles International Revenues).

There's no doubt that those in the industry expect Huawei, and its rival Chinese vendor ZTE Corp. (Shenzhen: 000063), to grow like wildfire in the coming years and both have stated intentions to increase their international revenues (see The Chinese Are Coming, Says Poll and ZTE Nears HK IPO).

Huawei consistently announces contract awards outside its home territory, and only last week announced a series of deals in Africa totaling $400 million in value (see Huawei Claims $400M African Contracts).

And analysts expect Huawei's and ZTE's international aspirations to be boosted in the coming years by the growing interest in the Chinese market from Western vendors (see Heavy Reading Reports on VOIP).

— Ray Le Maistre, International News Editor, Light Reading

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jes 12/5/2012 | 1:04:41 AM
re: Huawei Set for $5B in 2004 Which big vendor - Nortel/Cisco/Alcatel/Siemens/Lucent/... will be most affected by the chinese - Huawei/ZTE... on-slaught ???

Any guesses ???????
ramsu 12/5/2012 | 1:04:40 AM
re: Huawei Set for $5B in 2004 The power of reverse engineering? :-))
brahmos 12/5/2012 | 1:04:40 AM
re: Huawei Set for $5B in 2004 all of them will be affected. I dont think anybody
has much of a clue what to do when people offer the
same or slightly less functional gear for 30% of
the price. and enterprise customers atleast will
go for the wal_mart mentality of buying whatever is
cheaper!! :(
h4oooo 12/5/2012 | 1:04:39 AM
re: Huawei Set for $5B in 2004 all of them will be affected. I dont think anybody
has much of a clue what to do when people offer the
same or slightly less functional gear for 30% of
the price. and enterprise customers atleast will
go for the wal_mart mentality of buying whatever is
cheaper!! :(
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~`

not so badly.

In china, most private telecom equipment vendors tout outstanding achievement but indeed certain portion of the contract does be true paper contract.

Let's look into Harbour Networks, it can achieves 100% growth in recent years, but part of the buyers do not pay it immediately after signing the contract, therefore Harbour has difficulty in operating properly in this years for lacking cash.

And in HuaWei, employee is capable to get former year bonus after working another whole 4 quarters. There maybe be 2 reasons, the one is that this can prevent employee from leaving the company after the new year day, the other is that huawei is another cash-lacking guy.





Road Trip 12/5/2012 | 1:04:38 AM
re: Huawei Set for $5B in 2004 >Which big vendor - >Nortel/Cisco/Alcatel/Siemens/Lucent/... will be >most affected by the chinese - Huawei/ZTE... on->slaught ???

>Any guesses ???????

I'd like to write-in Mattel.
sanpedro 12/5/2012 | 1:04:37 AM
re: Huawei Set for $5B in 2004 Dumb idea.
boozon 12/5/2012 | 1:04:21 AM
re: Huawei Set for $5B in 2004 All of them will be affected in a way or another, especially those who are bleeding employees who might find good opportunities with Huawei and the likes.
Hence, not only these "traditional" companies are loosing the battle on the commercial ground but they also give to the competition fresh and trained sales engineers, technical support engineers, marketeers...
When will this trend stop? probably when all the western vendors will have their design and production outsourced to China, and will be reduced to big marketing companies.
Peter Heywood 12/5/2012 | 1:04:18 AM
re: Huawei Set for $5B in 2004 Boozon says: "When will this trend stop? probably when all the western vendors will have their design and production outsourced to China, and will be reduced to big marketing companies."

I think this is already happening. Nortel made a big thing out of becoming a "marketing-led" company in a recent press release:

http://www.lightreading.com/do...

Nortel and other western vendors are also outsourcing not just manufacturing but also R&D.

One other point about Huawei: Huawei itself says that its key strength is really having low cost engineers, in addition to low cost products. This enables it to be much more responsive to customer requirements. They have the manpower to quickly customize products for special requirements.
brahmos 12/5/2012 | 1:04:16 AM
re: Huawei Set for $5B in 2004 the next attack from huawei could be buying themselves a solid N.american and EU sales & support org by poaching talented people off the struggling behemoths like LU & NT. if they can do that and open
a big north american R&D center, would establish some good credibility and position them to take on the existing biggies in the future.
A lot of good startups with very experienced people
are also dying on the vine, these can be cheaply snapped by their north american subsidiary.

in all the upper management employee meetings I have been to at my workplace, nobody has given a convincing answer to the vicious pricing attack problem. and unfortunately for me, my co is on the hitlist posted 8(
zher 12/5/2012 | 1:04:14 AM
re: Huawei Set for $5B in 2004 All of them will be affected, but as for the data network product, Huawei will be the No.1 competitor.
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