Telecom Lead Asia: In order to move aggressively to
expand ahead of its core telecommunications business, Huawei Technologies plans
to increase its research-and-development spending nearly 20 percent this year
to $4.5 billion.
The company will mainly invest to drive its expansion
into smartphones and cloud computing. The company plans to increase its
business in the faster-growing mobile-device and enterprise-network markets to
meet a target of 15 percent to 20 percent revenue growth for this year.
The company’s spending will increase to $4.5 billion from
$3.76 billion last year, according to Eric Xu Zhijun, acting CEO of the
company.
The company is targeting market-share gains in its core
business units, and counts among its strategic advantages the control of its
manufacturing supply chain.
The company expects growth to be partly driven by its new
units, as it emerges from its current “transformational phase” to its
longer-term plan of becoming a US$100 billion company by 2020.
Huawei sales revenue up 12% to CNY 203.9 billion in 2011
Recently, Huawei posted 11.7 percent increase in sales
revenues at CNY 203.9 billion in 2011 over the previous year. Huawei reported
net profits of CNY 11.6 billion, down 53 percent.
Huawei posted sales revenues of CNY 44.6 billion in the
consumer business, an increase of 44.3 percent over 2010.
editor@telecomlead.com