🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

UPDATE 3-China's Huawei sees $100 bln revenue in 10 years

Published 04/27/2011, 04:58 AM
NOKIA
-
GOOGL
-
TEO
-

* Expects smartphone sales to rise 10-fold to 30 mln by 2012

* Says 2011 revenue expected to grow about 10 pct

* Growth to slow from last year's 24 pct

* Overseas sales, key divisions to drive business (Adds smartphone shipment target)

By Kazunori Takada and David Lin

SHANGHAI, April 27 (Reuters) - Huawei Technologies Co Ltd , the world's No.2 network equipment maker, expects revenue to reach the $100 billion mark in a decade, driven by sales of telecom devices and smartphones, despite a slowdown in revenue growth this year.

Huawei, which competes with Ericsson , Nokia Siemens Networks and Chinese rival ZTE Corp , expects revenue to grow by about 10 percent to $31 billion this year and smartphone sales to rise 10-fold by 2012.

The company's revenue rose 24 percent to 185 billion yuan in 2010, with two thirds of its business coming from telecom networks and the devices division, which sells consumer products such as cell phones and tablet PCs, contributing a sixth.

"The (comparison) base is very high so maintaining the strong pace of growth will be difficult," Fan Chen, vice president of accounting, told Reuters on the sidelines of an analysts' conference in Shanghai.

Huawei's spectacular growth and global standing have boosted its profile, but its ambitious overseas expansion plans have hit roadblocks on suspicions that the company maintains links with China's military.

The company has said it has been the victim of misperceptions about its relationship with the Chinese military because its founder, Ren Zhengfei, served in the People's Liberation Army until 1983. [ID:nN24297063]

In response to concerns over its ownership structure, Huawei supplied information about its board of directors, providing names, photos and brief biographies in its annual report earlier this month. [ID:nL3E7FI1BP]

Chief Marketing Officer Richard Yu told the conference that the firm's revenue was expected to reach $100 billion in the next 10 years.

Victor Xu, chief strategy and marketing officer of Huawei Device, said shipments of smartphones were expected to reach as much as 30 million by 2012 from around 3 million last year.

"We see exponential growth in smartphones over the next five years," He said.

Huawei is betting on Google Inc's Android operating system for its smartphones, a fast-growing sector in which Apple Inc's iPhone, Samsung Electronics Co Ltd's Galaxy and others are competing for market share.

ZTE said in March global smartphone sales would likely rise to 12 million units from just 3 million in 2010, partly driven by the launch of lower-priced handsets. [ID:nN23295356]

US ACQUISITIONS

Huawei has said it remains keen on U.S. acquisitions despite facing trouble buying assets overseas.

Most recently, the technology company hit regulatory obstacles when it agreed to buy the assets of 3Leaf Technologies for $2 million last year.

In February, the company said it would back away from its acquisition of the U.S. server technology company's assets after the U.S. government raised national security concerns. [ID:nN19134618]

Early this month, Huawei also reported a 30 percent rise in 2010 net profit to 23.8 billion yuan ($3.64 billion).

It attributed the increase to strong overseas sales and growth in its core businesses of telecommunications networks, global services and devices. (Editing by Jacqueline Wong and Vinu Pilakkott)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.