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Huawei Annual Revenues Hit $28B

Ray Le Maistre
1/31/2011

Huawei has confirmed reports that its 2010 unaudited revenues are US$28 billion, a 28.4 percent increase on 2009, when its audited revenues hit $21.8 billion. (See Huawei Doubles Profits in 2009.)

That puts the Chinese firm ever closer to taking over from Ericsson as the world's leading supplier of hardware, software and services to the world's communications service providers.

Huawei says it's not providing any further details until it publishes its annual report (due March 31), though it's understood that the company's devices division performed particularly well, with reports from China suggesting a 54 percent increase in revenues to $4.5 billion.

The news comes only days after domestic rival ZTE announced preliminary financial numbers that showed a 16.7 percent increase in revenues to $10.7 billion.

The two Chinese giants are likely to be the only major vendors boasting any significant 2010 revenue growth, though.

NSN managed a 1 percent increase in full-year revenues to €12.66 billion ($17.4 billion), while Ericsson saw its 2010 revenues dip by 1.6 percent year-on-year to 203.3 billion Swedish Kronor ($31.3 billion). (See Signs of Growth at NSN and Ericsson Q4 Sales Surge, Margins Shrink .)

AlcaLu is set to report its 2010 financials on Feb. 10, with analysts on average expecting the company to report revenues of around $21.3 billion.

Table 1: Major Telecom Vendor 2010 Annual Revenues

All revenues converted to US$ 2010 revenues YoY change
Ericsson $31.3 billion -1.6%
Huawei $28.0 billion* 28.4%
Alcatel-Lucent $21.3 billion** 1.9%***
Nokia Siemens Networks $17.4 billion 0.7%
ZTE $10.7 billion 16.7%
* As yet unaudited
** Average analyst forecast used for comparison -- results to be reported Feb. 10 2011
*** Comparison with 2009 full-year revenues in US$




— Ray Le Maistre, International Managing Editor, Light Reading

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JustToMakeYouThink
JustToMakeYouThink
12/5/2012 | 5:14:03 PM
re: Huawei Annual Revenues Hit $28B


One thing which can be learned here. Chinese vendors around +double digits. Western vendors around +0.


Who can explain the following: Equipment consists out of components. Components is an international market and as such as expensive for Chinese as for Western vendors. The stuff is made by automated pick and place machines.


Chinese are not known to be best class in on Quality (yes that is that thing everybody say he needs but does not want to pay for).


So the only thing more expensive for the Western vendors is engineering cost. Which is normally written of over thousands and thousands of products and should make a marginal difference on the end user price.


Nevertheless double digit figures. THIS REALY STINKS.


*PLEASE NOTE THIS IS MY PERSONAL OPINION.

beeson
beeson
12/5/2012 | 5:14:02 PM
re: Huawei Annual Revenues Hit $28B


Using the correct exchange rates Ericsson grew 10,2% in USD 2009 to 2010.


Ericsson had revenues in 2010 of 203B SEK = 31,3B USD at a SEK/USD rate of 6,44.


2009 Ericsson had revenues of 206,5B SEK = 28,4B USD at a SEK/USD rate of 7,26.


Be sure to compare apples with apples!

Hassene Akkeri
Hassene Akkeri
12/5/2012 | 5:13:47 PM
re: Huawei Annual Revenues Hit $28B


Equipment consists of components, this is true. They are as expensive for western vendors as for chinese', this is also true. As you said, engineering represents another important factor in pricing. However:


1- pricing is affected by much more factors than components and engineering,


2- business development does not only depend on price.


The reason of the double digit business progression of the chinese vendors is complex. First, they propose much cheaper products due to the cheap workforce and production/delivery facilities. Second, they enjoy a very strong financing backup from chinese banks that allows them to do effective technology research under relaxed context. It also allow them to do business development while proposing creative business models to telecom operators: such as projects financed by chinese government, revenue share and so on.


On the other hand, the joint ventures between Nokia/Siemens and Alcatel/Lucent cannot be considered as real successes. The resulting suppliers are facing serious tactic and strategic problems since then, which has affected the scope of their technology and even the quality of their roadmaps. Not to mention the financial recession effect, which came at a crucial moment, few years after the NSN and Alu joint ventures creation and in a hard structuring context.


The subject is complex and needs more thorough analysis. Yet, if we transpose these numbers to the economic growth figure, we find almost the same thing: double digit growth for China and zero to three growth rate for western countries.

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