Huawei Investment Holding knows the importance of good connections. One of China's leading manufacturers of telecommunications equipment, Huawei makes a range of products and provides services for cloud computing and more traditional telecom operations, such as radio access, fixed access, core network, and other systems. The company also makes mobile devices, including smartphones and tablets, primarily under the Ascend and MediaPad brands. Huawei offers such services as consulting, network integration, end-to-end delivery, and consulting. It serves such Asian carriers as China Mobile and SingTel, but other customers include Vodafone, TELUS, and KPN. Established in 1987, Huawei is 100% employee-owned.
Huawei's carrier network business group targets telecom carriers with a broad array of communications equipment that includes LTE, GSM, WiMax, DSL, routers, switches, software, and secure gateways. The unit also offers global services that include consulting, systems integration, energy retrofits, and managed services. Huawei's enterprise network segment manufactures similar equipment for large organizations: servers, storage products, cloud computing platforms, secure network equipment, videoconferencing, unified communications, and convergent communications gear. In its consumer business group, Huawei makes handsets, smartphones, wireless routers, set-top boxes, and other mobile broadband and home convergence devices.
Having long been established in the Asia/Pacific region, Huawei has grown into a major global player with offices in more than 140 countries. It continues to expand international operations, which make up more than two-thirds of sales.
Overall sales for Huawei were about CNY 204 billion ($32 billion) in 2011, an increase of nearly 12% over 2010. Sales for Huawei's enterprise and consumer business groups rose 57% and 44%, respectively, for the year. In its carrier network segment (75% of sales) sales were 3% higher. Net profits for the year fell by around 53%, due in part to a more than CNY 4 billion exchange loss related to constant appreciation of the Renminbi, Huawei's native currency. The company's results were also affected by spending curbs in the global telecom carrier market, which drove prices and profits down. Huawei invested instead in its consumer and enterprise businesses, launching a series of smartphones for consumers and bolstering its cloud computing and data center offerings aimed at enterprise customers.
Huawei relies to a great extent on internal development for growth. Worldwide, the company maintains 23 research institutes and has set up 34 innovation centers that are operated in partnership with leading telecom operators. R&D accounts for around 10% of annual revenue, and more than 44% of its global workforce is involved in the development of products and services.
In 2012 Huawei took full ownership of a Chinese joint venture formed with Symantec. The company bought Symantec's 49% stake for $530 million in order to focus on developing security and data storage products for telecommunications carriers and other businesses. – less