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Huawei is world's top telecom supplier | TelecomsTech

Discussion in 'China & Asia Pacific' started by Martian, Jan 22, 2017.

  1. Martian

    Martian Captain SENIOR MEMBER

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    I have finally found hard numbers to compare the telecom network carrier equipment (e.g. base stations, SDNs: Software-Defined Networks, enterprise routers and switches, etc.) revenues for Huawei, Ericcson, and Nokia.

    It turns out Huawei is the world's #1 telecom network carrier equipment supplier. Huawei is larger than Ericsson, which had been the long-time leader in the telecom network carrier equipment industry.

    Huawei: $35.8 billion in sales to telecom network carriers
    Ericsson: $30.4 billion
    Nokia: $28.5 billion
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    Opinion: Can Nordic rivals stop the Chinese juggernaut? | TelecomsTech

    "Overall Huawei’s 2015 revenue was $60.8 Billion out of which the carrier business group generated US$35.8 billion, up 21% YoY. In comparison, Ericsson’s has revenue of about $30.4 billion, and Nokia/ALU (combined) had revenue of $28.5 billion in 2015."

    [​IMG]
     
    Last edited: Jan 22, 2017
  2. Golden_Rule

    Golden_Rule Lieutenant FULL MEMBER

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    WOW!!!!! $60 billion in in less than 20 years (1996 is when Huawei really got into telecom). That is impressive business model backed by THEFT of IPs from all these multinationals who were at that time transferring all of their manufacturing plants and technology - HW & SW, to China.
     
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  3. Martian

    Martian Captain SENIOR MEMBER

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    Primary source for "Telecom Leaders" Huawei, Ericsson, and Nokia in 2015 telecom network revenues

    Huawei was a pioneer in SDNs (ie. Software-Defined Networks) and that was primarily responsible for Huawei's explosive growth.

    The article below provides the original data for Huawei, Ericsson, and Nokia regarding 2015 telecom network sales.

    "Telecom Leaders

    Huawei with $35.8 billion
    Ericsson with $30.36 billion
    Nokia with $30.06 billion
    "

    Revenue analysis shows Huawei is too big vs Ericsson, Nokia | Telecom Lead

    [​IMG]
     
    Last edited: Jan 23, 2017
  4. Martian

    Martian Captain SENIOR MEMBER

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    Early move in SDN partly explains Huawei's success

    An interesting question is how did Huawei become such a large company with $44 billion in sales for 2014? Huawei was in the right place at the right time. Huawei was an early mover into Software Defined Networking (SDN). Instead of using expensive proprietary hardware, Huawei customers could buy generic inexpensive hardware and customize it with software to emulate the functions of much more expensive dedicated hardware. By offering customers lower costs and providing added value, Huawei had a winning business strategy.
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    The Rise of China's Innovation Machine | The Wall Street Journal

    [​IMG]
     
  5. lca-fan

    lca-fan Major SENIOR MEMBER

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    Does Huawei supply telecom equipment to USA, Cananda, Japan, Europe and Australia and are these countries even allowing to use Huawei equipments? Answer is No, as per my knowledge and in fact banned.

    Why, Chinese use these very equipment supplied by ZTE and Huawei to hack and steal technology and vital military and other information. It is best to avoid Chinese telecom equipment.

    Since Chinese telecom equipment is extensively used in China and price conscious third world countries like India which is again huge market, Brazil, Argentina, etc. Huawei has become the largest manufacturer of telecom equipment.

    Indian govt only now has realized this and now all the equipment supplied by Chinese manufacturers are being tested for bugs are being re-certified. To avoid this Huawei is now opening plant in India.
     
  6. Martian

    Martian Captain SENIOR MEMBER

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    You need to stop making false claims.

    Huawei Telecom is huge in Europe and the UK.

    Citations:
    Huawei Says Europe Is ‘Like a Second Home Market’ | The Wall Street Journal
    Huawei has become embedded into UK telecoms infrastructure | FT
     
  7. Martian

    Martian Captain SENIOR MEMBER

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    Huawei is a technology pioneer and its patents are important for at least four reasons.

    1. Huawei pioneered many SDN technologies.
    2. Huawei built "the industry’s first Giga DSL (Digital Subscriber line) prototype" in 2011.
    3. "Huawei also recently announced the successful development of the world’s first node level vectoring (NLV) prototype" in 2011.
    4. Huawei was an innovator in DSLAM.

    Due to its pioneering technologies and patents, Huawei grew into a $60 billion company for 2015. Chinese tech companies develop many of their own technologies and patents to become giants.

    The following citation is from 2011 on Huawei's pioneering technology.

    Huawei Unveils Industry's First Giga DSL Prototype

    [​IMG]
    Huawei Smart AX M5300. The Smart AX MA5300 platform has been instrumental to Huawei's success in the global DSLAM (digital subscriber line access multiplexer) market, but the MA5600 series, designed to support more bandwidth-intensive services such as triple/quad play, is the company's flagship DSLAM.

    Huawei Unveils Industry’s First Giga DSL Prototype

    [​IMG]
     
  8. ghost4551

    ghost4551 IDF NewBie

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    华为这样的大企业,你们这帮智障永远也搞不出来
     
  9. RMLOVER

    RMLOVER Lieutenant FULL MEMBER

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    No Indian company can supply telecom network carrier equipment in the world.

    Huawei is world's top telecom equipment supplier . This is the difference.
     
    Last edited: Apr 4, 2017
  10. RMLOVER

    RMLOVER Lieutenant FULL MEMBER

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    World's top five most profitable mobile handset makers in Q3

    http://www.chinadaily.com.cn/business/2016top10/2016-12/02/content_27544898.htm

    For the first time, four Chinese brands have been ranked among the top five most profitable smartphone vendors around the globe due to Samsung's fiasco surrounding the Galaxy Note7, according to an industry consulting company. Karn Chauhan, research analyst for Counterpoint Technology Market Research, said the top four domestic brands generated a combined $1.1 billion in operating profits, capturing a combined 11 percent profit share in the third quarter of this year.

    "The game of profits has always been between Apple and Samsung because of its strong presence premium segment and vertical integrated business model," said Chauhan. Statistics show that the global mobile handset hardware segment generated $10.2 billion in operating profits during the third quarter. "Over the last few quarters, there has been a strong competitive shift towards the Chinese brands which has generated healthy scale focusing on high volume mid- to high-tier segment by offering an attractive affordable premium portfolio," Chauhan added.

    No. 3 Huawei, operating profit share: 3.3 percent
    Models demonstrate Huawei's P9 during the product's launch ceremony held in May in Taiwan. [Photo/Xinhua]

    [​IMG]
     
  11. RMLOVER

    RMLOVER Lieutenant FULL MEMBER

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    Huawei's latest innovation puts it on the road to becoming second-largest smartphone brand
    http://europe.chinadaily.com.cn/business/2017-02/27/content_28354462.htm

    Chinese telecommunications giant Huawei advanced its consumer product offerings by launching two new smartphones and a smart watch at the Mobile World Congress in Barcelona on Sunday.



    It was Huawei's latest attempt to challenge Apple and Samsung in the smartphone market – a battle that gained traction after Samsung recalled its flagship Galaxy Note 7 last year, triggered by customers claiming its batteries had caught fire.

    The two Huawei phones, P10 and P10 Plus, champion great picture-taking functions facilitated by new Leica front and back cameras with new portrait features.

    "Huawei's P series has become a powerful contender in the market. Huawei is maximizing Samsung's unfortunate issues with its battery, and, if Huawei continues to invest in its brand-building strategies, it will become the Number 2 smartphone brand," said Ben Little, cofounder of innovation consultancy Fearlessly Frank.

    Huawei is already the world's third-largest smartphone maker, just behind Apple and Samsung. Last year, Huawei shipped 139 million smartphones worldwide, a 30 percent year-on-year increase.

    Unlike Samsung and Apple, Huawei only entered the consumer product market in recent years, after realizing the importance of brand building among mass consumers as the firm expands globally. Traditionally, Huawei generates most of its revenue from its network business, providing services to operators including Vodafone and Telefonica.

    Despite being a relative newcomer in consumer electronics, it did not take long for Huawei to create groundbreaking design in the smartphone segment, said Mark Adams, chairman of the consultancy The Honey Partnership.

    "I am impressed by Huawei's brave, confident and inspiring journey. It is posing a challenge for Apple and Samsung. Its newly launched consumer products are mature, sophisticated, and have great attention to detail," he said.

    In addition to photography function highlights, Huawei's newly launched phones also offer in-house Kirin 960 processors, which have a reputation for fast performance. Its design emphasizes a stylish finish, offering the industry's first hyper diamond-cut finishing color variants, achieved through a partnership with Pantone, a US color technology company.

    A 64 gigabyte P10 will cost 649 euros ($685), while the P10 plus will cost 699 euros for a 64 gigabyte version and 799 euros for a 128 gigabyte version. The P10 phone is 13 centimeters in size, while P10 Plus is 14 centimeters.

    Speaking at the Barcelona product launch, Huawei Consumer Business Group CEO Richard Yu said: "As culture and technology continue to intersect in every aspect of our world, we want to deliver new products and experiences that ultimately improve and enhance life."

    Meanwhile, on Saturday the Chinese consumer electronics brand TCL introduced its first Blackberry-licensed phone, also at Barcelona's MWC. It is called KEYone. The move follows an agreement between the two companies in December that sees TCL become the manufacturer of Blackberry phones, as Blackberry moves away to focus on its security software business.

    Little, from Fearlessly Frank, said the KEYone launch is significant because it shows the market's increasing emphasis on the business customer, which has been underutilized in recent years.

     
  12. RMLOVER

    RMLOVER Lieutenant FULL MEMBER

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    Huawei p10 specs

    http://www.gsmarena.com/huawei_p10-8514.php


    Colour

    Arctic White/Dazzling Blue/Dazzling Gold/Prestige Gold/Graphite Black/Moonlight Silver/Rose Gold/Greenery

    Display

    5.1 inch FHD
    1920 x 1080
    16M colours, 432 PPI

    CPU

    HUAWEI Kirin 960 CPU, Octa-core 4* Cortex A73 2.4 GHz + 4*Cortex A53 1.8 GHz

    Operation System

    Android™ 7.0

    Memory

    VTR-AL00: 4 GB RAM + 64 GB ROM, 4 GB RAM + 128 GB ROM
    VTR-TL00: 4 GB RAM + 64 GB ROM
    VTR-L09 / VTR-L29: 4 GB RAM + 32 GB ROM, 4 GB RAM + 64 GB ROM

    Network

    VTR-AL00
    Main SIM card:
    LTE FDD: Bands 1/2/3/4/5/7/8/9/12/17/18/19/20/26
    TD-LTE: Bands 38/39/40/41 (100M)
    UMTS (WCDMA) / HSPA + / DC-HSDPA: Bands 1/2/4/5/6/8/19
    TD-SCDMA: Bands 34/39
    CDMA: BC0 (800 MHz), Only for China Telecom (China Mainland + Macao, China)
    GSM / EDGE: 850/900/1800/1900 MHz

    Secondary SIM card:
    UMTS (WCDMA): Bands 1/2/4/5/6/8/19
    CDMA: BC0 (800 MHz), Only for China Telecom (China Mainland + Macao, China)
    GSM: 850/900/1800/1900 MHz

    Notes: The two SIM card slots can be Main card or Secondary card.

    VTR-TL00
    Main SIM card:
    LTE FDD: Bands 1/2/3/4/5/7/8/9/12/17/18/19/20/26
    TD-LTE: Bands 38/39/40/41 (100M)
    UMTS (WCDMA) / HSPA+ / DC-HSDPA: Bands 1/2/4/5/6/8/19
    TD-SCDMA: Band 34/39;
    CDMA: BC0 (800 MHz), Only for China Telecom (China Mainland + Macao, China)
    GSM / EDGE: 850/900/1800/1900 MHz

    Secondary SIM card:
    UMTS: Bands 1/2/4/5/6/8/19
    CDMA: BC0 (800 MHz), Only for China Telecom (China Mainland + Macao, China)
    GSM: 850/900/1800/1900 MHz

    Notes: If there are CHINA MOBILE's SIM card, the main card should CHINA MOBILE's SIM card, and the secondary card just support GSM / CDMA.

    VTR-L09:
    Main SIM card:
    4G TD-LTE: Bands 38/39/40
    4G FDD LTE: Bands 1/2/3/4/5/7/8/9/12/17/18/19/20/26/28/29
    3G UMTS (WCDMA) / HSPA+ / DC-HSDPA: Bands 1/2/4/5/6/8/19
    2G GSM / EDGE: 850/900/1800/1900 MHz

    VTR-L29
    Main SIM card:
    4G TD-LTE: Bands 38/39/40/41 (100 MHz)
    4G FDD LTE: Bands 1/2/3/4/5/7/8/9/12/17/18/19/20/26/28/29
    3G UMTS (WCDMA) / HSPA+ / DC-HSDPA: Bands 1/2/4/5/6/8/19
    2G GSM / EDGE: 850/900/1800/1900 MHz

    Secondary SIM card (Only support voice communication):
    3G UMTS (WCDMA): Bands 1/2/4/5/6/8/19
    2G GSM: 850/900/1800/1900 MHz

    GPS

    GPS / Glonass / Galileo / BDS

    Connectivity

    Bluetooth 4.2
    802.11ac/a/b/g/n, 2.4G / 5G
    USB 2.0

    Sensors

    Fingerprint Sensor, G-Sensor, Gyroscope Sensor, Compass, Ambient Light Sensor, Proximity Sensor, Hall Sensor

    Camera

    Main Camera
    20 MP Monochrome + 12 MP RGB, F2.2
    OIS (Optical Image Stablization)
    Dual-tone Flash
    PDAF + CAF + Laser + Depth Auto Focus
    2x Hybrid Zoom
    4K Video Recording

    Front Camera
    8 MP AF, F1.9

    Audio

    Audio File Formats: mp3 / mp4 / 3gp / wma / ogg / amr / aac / flac / wav / midi / ra
    Support 192 Khz / 24 bit

    Video

    3gp / mp4 / wmv / rm / rmvb / asf

    Emotion UI

    EMUI 5.1

    Battery

    3200 mAh (TYP)

    NFC

    Support

    In The Box

    Handset / Headset / Charger / USB-C Cable / Eject Tool / Quick Start Guide / Pre-fitted Screen Protector / Protective Case*

    *Protective case is optional.

    *Disclaimer: specifications may change without notice, images are for illustration purpose only. Colours and features may not be available in all markets, please check with local retailers for exact offer.


    [​IMG]
     
  13. RMLOVER

    RMLOVER Lieutenant FULL MEMBER

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    CHINA’S HUAWEI BATTLES TO OWN THE NEXT GENERATION OF WIRELESS TECHNOLOGY
    Wall Street Journal
    by: Matthias Verbergt
    February 26, 2017
    http://signalsresearch.com/news/chi...n-the-next-generation-of-wireless-technology/

    As the global telecommunications industry determines the parameters of its next-generation network of superfast connections, one company is playing an outsize role: China’s Huawei Technologies Co.

    The modern concept of a mobile-phone network was fathered by European and U.S. equipment suppliers such as Ericsson AB, Nokia Corp., which now includes the former U.S. giant Lucent, and Qualcomm Inc. They were critical in defining standards and then designing, manufacturing and rolling out the hardware, such as antennas, that underpin today’s globally adopted 3G and 4G high-speed networks.

    More recently, Asian rivals, particularly Huawei, have gone on the offense, quietly using an obscure, international process now under way to define the next gold standard, so-called 5G, to challenge the established order. The upshot: A Chinese company all but banned from selling its telecom equipment in the U.S. on national-security grounds is in one of the best positions to help shape the technical standards that will determine how the new network will work.

    Late last year, for instance, telecom firms from around the world dispatched their top engineers to Vienna for a discreet, but strategic round of meetings aimed at defining capabilities and specifications of 5G.

    As delegates huddled in the gilded conference room of Vienna’s InterContinental Hotel, Huawei’s red flower logo dotted several rows of tables.

    “They’re twice as many as anyone else,” said the senior representative of a Western rival as he entered the room, “They’re everywhere.

    Huawei already has overtaken Sweden’s Ericsson as the world’s largest supplier of wireless equipment by revenue, according to some estimates. The global market for wireless equipment was $48 billion in 2015, data from IHS Markit show, of which Huawei, Ericsson and Nokia control about 80%.

    Huawei executives say the Chinese company initially gained traction by replicating Western technology, and offering quality products at lower costs. With 80,000 staffers working on research and development, however, Huawei has now become a formidable lab force.

    That could give Huawei a sizable edge at a time that all suppliers have set their sights on 5G—the technology promises to be a wellspring of revenue by allowing for faster speed and smoother interaction between connected objects—but don’t all have deep pockets.

    Ericsson and Nokia are cutting costs and jobs. The two Nordic companies sent smaller delegations to the four-day meeting in Vienna, where telecom companies fought to influence the design of 5G, expected to be rolled out commercially early in the next decade.

    “We in Europe took our success early on in the cellphone [business] for granted,” Ericsson Chief Executive Börje Ekholm said during a recent interview in Stockholm.

    Huawei has expanded rapidly in recent years in much of the world even as its mainstay telecom-gear business has been effectively shut out of the U.S. market, where a 2012 congressional report concluded that its equipment could be used by Beijing to spy on Americans. Huawei has denied such accusations, saying it operates independently of Beijing.

    After meetings such as the ones in Vienna, the International Telecommunication Union, a Geneva-based United Nations agency, will specify final 5G standards, listing which patents are essential to the technology starting in 2019, said Dimitris Mavrakis, an analyst at technology consultancy ABI Research.

    “You won’t be able to deploy or create a 5G network without these essential patents,” he said.

    The first large cellular networks, often referred to as first generation or 1G, were deployed in the 1980s, and relied on national technologies that were rarely compatible.

    In 1982, a European group of national post and telecom agencies set up an association called Groupe Special Mobile, or GSM, with the aim of designing a pan-European mobile standard. The initiative was quickly endorsed by national governments and European authorities, forcing European equipment suppliers to fight for slices of GSM technology. GSM was adopted by carriers in Russia, China and even the U.S. The standard became a byword for 2G networks as it eclipsed rival U.S. technologies such as CDMA.

    GSM made the fortune of companies such as Ericsson and Nokia, which supplied large parts of the necessary equipment or owned patents that generated a windfall in licensing revenue.

    “The path was shaped up by Europeans,” said Jorma Ollila, who was chief executive of Finland’s Nokia from 1992 to 2006. “Europe was the winner of that geopolitical game.”

    The standard-setting process became more international in the 1990s, when ITU, the U.N. agency, oversaw the development of 3G. At the time, Huawei was manufacturing GSM equipment under license, mainly for operators in rural China. Europeans succeeded in retaining crucial positions within industry working groups, maintaining extended sway over patent-picking decisions.

    The battleground became more disputed in the next decade as Huawei, founded in 1987, expanded in-house research capacities and became involved with 4G design.

    Huawei “went from zero to being a big contributor to the whole standardization process,” said Michael Thelander, a consultant at Signals Research Group.

    Building on its success in securing 4G patents, Huawei became a leading supplier of wireless equipment, even winning over clients on Ericsson’s and Nokia’s turf in the Nordics. Huawei also diversified in handset making, a business the Nordic companies have abandoned.

    In 2016, Huawei said its revenue rose 32% to 520 billion yuan ($75.7 billion). In the same period, revenue fell 10% at both Nokia and Ericsson.

    In the race for 5G dominance, executives at European equipment suppliers said Huawei tends to saturate working groups with design proposals that aren’t always relevant, going for quantity rather than quality.

    A Huawei spokesman said the company’s research was “professional, collaborative and based on a significant contribution to investing in research and development.”

    After hearing some of Huawei’s proposals for 5G design in Vienna, the senior Western company representative said: “If they threw the same resources with the quality of Ericsson or Qualcomm, it would be game over.”
     
  14. RMLOVER

    RMLOVER Lieutenant FULL MEMBER

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    We will be the top PC company in 5 years – Huawei
    Staff Writer9 June 2017
    https://mybroadband.co.za/news/business/214756-we-will-be-the-top-pc-company-in-5-years-huawei.html


    Huawei said it will overtake Apple, Lenovo, and HP to become the biggest PC vendor in the world in the next five years.

    Speaking to CNBC, Huawei consumer business group COO Wan Biao announced the company’s intentions to take on the global PC market.

    “Whenever Huawei decides to enter an area and make a product, our target is always to be a global leader,” said Biao.

    “I think this has already been proven in our smartphone products.”

    Biao said it would take about 3-5 years for Huawei to surpass its competition and become the biggest PC vendor.

    The company recently launched its new MateBook X, which boasts impressive specifications in a small form factor and competes with Apple’s MacBook devices.
     
  15. RMLOVER

    RMLOVER Lieutenant FULL MEMBER

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    Can Huawei become No. 1 without going public?
    Chinese smartphone maker shuns shareholders to keep eye on long-term prize

    https://asia.nikkei.com/Business/Companies/Can-Huawei-become-No.-1-without-going-public

    HIROSHI MURAYAMA, Nikkei senior staff writer

    TOKYO -- Over the past few years, whenever I have been asked which Chinese company is on my radar, I keep mentioning Huawei Technologies.

    Huawei is rarely a topic of conversation in Japan, possibly because it is unlisted. Recently, however, the name recognition of this telecommunications equipment manufacturer is increasing in my country because its smartphones have become available here.



    In the global smartphone market, Huawei has already captured the third-largest share after Samsung Electronics and Apple. The question is whether it can overtake the South Korean giant without going public.

    In its Jan. 6 online edition, The Nikkei reported from Las Vegas that Huawei wants to expand in the U.S. and plans to do so via a smartphone that adopts Amazon's artificial intelligence technology. At a press event during the 2017 International Consumer Electronics Show, Huawei announced the U.S. release of its Mate 9 smartphone equipped with an app that uses Amazon's AI called Alexa.

    The announcement was made while Amazon Vice President Steve Rabuchin was on the stage. Upon seeing this, I thought to myself, Huawei will use Amazon's prowess to pry open the door.

    Great American wall

    In the global smartphone market in the third quarter of 2016, Samsung had a 19.2% share followed by Apple at 11.5% and Huawei at 8.7%, according to American market research company Gartner.

    Richard Yu Chengdong, CEO of Huawei's consumer group, said the company will seek to become the world's second-largest smartphone maker by 2018 and capture the top spot in four to five years. He said this in an interview carried in The Wall Street Journal's online Japanese-language edition on Sept. 2, 2016.

    While the U.S. market holds the key to Huawei's plan to surpass Apple and Samsung, the Shenzhen-based company has long been shut out there over speculation that the company has a special relationship with the Chinese government because of founder and CEO Ren Zhengfei's background as a former People's Liberation Army officer.

    The U.S. Congress has continued to demand that Huawei's telecom equipment not be used for fear that it may be co-opted for Chinese espionage activities. Although Huawei has denied the allegation, its smartphone market share in the U.S. is said to be less than 1%.



    I follow Huawei not from the national security viewpoint but because it is a technology-oriented company that has reinforced its prowess in the world of telecom networks. This sets Huawei apart from many Chinese handset assemblers.

    Because it set aside more than 10% of sales for research and development, Huawei topped the list of filers with the World Intellectual Property Organization in 2014 and 2015. In terms of business scale, its presence cannot be denied: Huawei logged a net profit of 36.9 billion yuan ($5.35 billion) on sales of 395 billion yuan in 2015.

    But it is less known than Alibaba Group Holding and other Chinese companies because it is unlisted and therefore gets less press coverage.

    [​IMG]
    Huawei displays automotive technologies at its booth at the 2017 International CES. The company is dedicated to steadily improving its technologies using internal funds.

    Some analysts note that Huawei remains unlisted because it is unwilling to disclose corporate information. But it could spin off some segments for listing like many other Chinese companies that have made part of their operations public but still kept the parent company private.

    When asked why Huawei remains unlisted, Ren has said that if the company listed, it would be unable to pursue ideal management practices because shareholders would demand short-term profits.

    Well-known unlisted companies include Robert Bosch, a German automobile parts maker, and Swedish furniture producer Ikea.

    But can Huawei, or any other company, remain privately held in the dog-eat-dog market for electronics? Companies need massive funds to keep up with today's technological advances. Samsung annually spends some 2 trillion yen ($17.3 billion) on plants and equipment and 1 trillion yen on R&D programs.

    It may be impossible for Huawei to raise such money without going public.

    In Samsung's wake

    Analyzing Samsung from the perspective of its status as a listed company reveals an unexpected fact.

    According to a book on South Korea's industrialization and semiconductor industry by Hidemi Yoshioka, a professor at Kumamoto University and expert on the South Korean economy, Samsung continued capital spending on its semiconductor business in an amount larger than or close to sales from the segment from the 1980s through the early 1990s. It did this by tapping external funds, such as bank loans. The 1997 Asian currency crisis prompted Samsung to change the financing structure and begin reducing its debt ratio.

    While promoting debt repayments to financial institutions and buying back corporate bonds, Samsung shifted the procurement of funds to internal sources, such as net profit. As the ratio of capital spending for its chip business dropped to around 30% of sales from the segment at that time, Samsung became able to finance it through internal sources.

    In short, Samsung relied on external funds when it was catching up with bigger rivals, but the company reduced its reliance on the capital market and financial institutions when it began bringing in cash as its chip business got on track.

    Huawei has already moved beyond the catch-up stage and is comparable with Samsung in the 2000s in terms of business scale and profit. Though different in operational structure from Samsung, which focused on the semiconductor market, Huawei is probably confident that it can fully meet funding requirements from internal sources.

    Huawei seems to respect the practice of improving its technology slowly but surely with internal funds instead of raising fast cash by going public. Just as Samsung has grown via internal resources, Huawei may be able to surpass the South Korean giant without listing.

    One drawback to staying private, though, is that Huawei's flow of funds will remain in the dark because it does not need to disclose detailed financial statements and corporate information. Thus, the company will be unable to shake the U.S. perception that it has a special relationship with the Chinese government, which is going to affect business one way or another.
     

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