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Financial

Huawei Snatches Ericsson's Crown

Huawei Technologies Co. Ltd. can now lay claim to being the world's leading supplier of telecom hardware and software, following the publication of its sales for the first half of this year. (See Huawei Increases H1 Sales by 4.5%.)

There are no doubt a number of variables that make the comparisons slightly uneven -- particularly the breadth of portfolios (Huawei has made a big push in the enterprise technology and mobile devices sectors in the past year) and the impact of currency exchange rates. But at a basic level, and using the U.S. dollar as the unifying global currency, the Chinese vendor is now bigger than Ericsson AB (Nasdaq: ERIC).

While, at current exchange rates, Huawei's reported revenues for the first six months of 2012 total US$16.1 billion, Ericsson's come in at $15.25 billion (106.3 billion Swedish kronor). (See Ericsson Sets Q2 Benchmark.)

Nokia Networks , with first-half revenues of $8 billion (€6.59 billion) is some way off the pace, and Alcatel-Lucent (NYSE: ALU) and ZTE Corp. (Shenzhen: 000063; Hong Kong: 0763), which haven't yet reported their second-quarter sales, will not be troubling the leading duo. (See Restructuring Costs Hit NSN's Q2.)

Table 1: Vendor Ranking by H1 2012 Revenues (in US$)
Ranking by H1 2012 revenues Vendor H1 revenues in US$
1 Huawei 16.1 billion
2 Ericsson 15.25 billion
3 Alcatel-Lucent 8.13 billion (estimate)
4 Nokia Siemens Networks 8 billion
5 ZTE More than 5.8 billion




AlcaLu reported first-quarter revenues of €3.2 billion ($3.9 billion) and is expected to report sales of around €3.5 billion ($4.23 billion) for the second quarter when it reports its latest earnings on July 26. (See AlcaLu Issues Full-Year Profit Warning and Bad Start to 2012 for AlcaLu.)

ZTE stated recently that its revenues for the first six months of 2012 will be greater than the RMB 37 billion ($5.8 billion) it recorded a year ago.

— Ray Le Maistre, International Managing Editor, Light Reading

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melao2 12/5/2012 | 5:25:52 PM
re: Huawei Snatches Ericsson's Crown

Brookseven, yeah you are right.&nbsp;


&nbsp;


I would say that most chinese are too sensitive when you say any bad thing about china, or question any small details about a chinese company, they respond very aggressively. On the other hand there is a paranoia around Huawei in the USA.


&nbsp;


One feed the other.


&nbsp;


The only thing that really bothers me in the whole debacle about Huawei, is regarding being copycats. Huawei really has an imense R&amp;D facility, and really develops new and innovative products. The whole Cisco x Huawei problem that happened years ago really damaged their image until today in the industry...


&nbsp;


Speaking of optical networking (which was the primary topic in this site in the old days), I really do not see Huawei copying anybody, and more than that, always delivering really good technology.


&nbsp;


Other than that, I do agree that normally it is difficult to believe finance reports from private companies. There were so many cases of frauds in the past that it is normal to be skeptical. Actually even in public companies there were huge frauds over the years.&nbsp;

macster 12/5/2012 | 5:25:40 PM
re: Huawei Snatches Ericsson's Crown

LOL! Interesting take there, Seven.


What I found interesting was the topic of the thread, namely "Huawei Espionage". The other interesting take was you having to resort to calling another "a fool", simply because of differing opinions. You know me well. When you resort to insults, I will resort to WUMming :)


That's the gist of what's happening here. The minute I say something positive about Huawei, I get labelled a "Huawei troll" and whatnot. Given that I'm actually a big fan of ALU and have said many positive things about them (notably re. Lightradio), I must &nbsp;ask why I am never called an "ALU troll", etc.


It's blatantly clear.....................................&nbsp;

paolo.franzoi 12/5/2012 | 5:25:40 PM
re: Huawei Snatches Ericsson's Crown

&nbsp;


So another words you hate Phil Harvey the editor of Light Reading who posted the topic.


If you look at the posts up to yours, no mention of any vendor outside of the title was made. &nbsp;Neither Soup nor I did. &nbsp;What we answered was a question about router vendors.


I will be blunt with you however. &nbsp;I see that you are pushing a position. &nbsp;For example, you complain about trade issues and yet I see no posting about floating the RMB. &nbsp;Which, of course, is the single largest issue in the current trade imbalance. &nbsp;So, if you want open trade start at the beginning.


If you believe comm systems are not used for spying, then you best explain all the examples I gave going back all the way to WWII. &nbsp;If you can not, then you are being a fool. &nbsp;


seven

macster 12/5/2012 | 5:25:39 PM
re: Huawei Snatches Ericsson's Crown

No, this was actually an inapppropriate "Soupafly vs. macster" thingy. I apologise to LR and other readers.


P.S. It's fun though to throw insults. I now see why others on here do it :)&nbsp;


&nbsp;

macster 12/5/2012 | 5:25:39 PM
re: Huawei Snatches Ericsson's Crown

LOL! "In other words....."? How did you ever come up with this? Arrive at this conclusion? ROFL! Amazing!!! A reasonable person would remark, "Phil could have worded it better." Unless he was being a WUM :)


If you were to re-read the posts of that thread, I only asked a question, "Is Huawei the only vendor capable of this?". Then, all hell broke loose. I was deemed "a fool". I was "not getting it". Etc.


Of course I "wasn't getting it". I don't agree with you. It's very simple. A number on here just cannot accept a differing point of view. It's that, "if you're not with me, then you're against me" mentality. To quote from The Godfather, "Our ships must sail in the same direction". :)


With regards to pushing a position... Absolutely! Trade wars and protectionist measures affect me! Hence I posted this:


http://uk.finance.yahoo.com/news/1-chinas-huawei-zte-deny-124823957.html


LOL! No, I am not an "Ericsson troll". But do have a read. Trade makes everyone better off. This is a fundamental economic theory.&nbsp;


&nbsp;


P.S. You know what? I don't really want to go there, but if you want to... The US begged China to maintain the peg and not float, during the height of the Asian currency crisis back in 97/98 (I was in the midst of this, please don't try to argue, I know this case intimately). Now, it wants China to freely float it. Why? It's in their interest! So, would one not say... China might be doing things in her interest? (no, I am no "China troll" lol!)


&nbsp;

TechMech 12/5/2012 | 5:25:35 PM
re: Huawei Snatches Ericsson's Crown

Seems my both comment was off.


Macster is the main man in the slanging match we observed.


Any comments which seem to be againt a chinese company, are taken very sensitively. It would be interesting to find out why?

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