Huawei plots enterprise and devices push

Fiona Chau and Michael Carroll
20 Apr 2011

Huawei Technologies plans an aggressive push into the enterprise and device sectors to help it sustain the momentum that saw it grow profit 30% last year.

Net profit rose to 23.8 yuan ($3.6b) in 2010, while sales were up 24% to 185.2 billion yuan.

The bottom line was lifted by strong growth in international sales - which contributed 65% of the total revenues last year, up 60% from a year earlier, the company said in its 2010 annual report.

Huawei is now trailing Ericsson – which posted about $28.3 billion in revenue in 2010 - by merely around two weeks of sales, according to Bloomberg BusinessWeek.

To maintain its growth, the company is now restructuring with a "market oriented corporate governance structure," consisting of four business units – carrier network, enterprise business, devices, and ‘other’, with top brass at individual business units reporting directly by founder and CEO Ren Zhengfei.

Huawei said the enterprise business, which launched in 2010, will remain a key focus through 2011.

“Huawei is strategically increasing investments in the enterprise business, and offering services in industries such as e-Government, finance, energy, education, and retail, and helps customers improve their operating efficiency,” a Huawei spokesperson told TelecomAsia.

The company also has high hopes for its device and cloud computing businesses. Sales from devices rose 24.9% year on year to 30.7 billion yuan and the company plans to ship 60 million handsets this year.

Geographically, the company is seeing potential in emerging markets, such as India, Brazil, and Russia, the spokesperson said. Europe is another area for growth as the continent further recovers from economic instability.

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