HUAWEI

Huawei Technologies Co. Ltd. /’hw???we?/ is a most famous Chinese multinational networking and telecommunications equipment and different services company headquartered in Shenzhen, Guangdong. It is the very largest telecommunications equipment maker in the world, having overtaken Ericsson in the year 2012. Huawei was founded in the year 1987 by Ren Zhengfei, a former engineer in the People’s Liberation Army.

At the time of its well establishment Huawei was focused on good manufacturing phone switches, but has since high expanded its business to include building telecommunications networks; providing many operational and consulting services and equipment to enterprises inside and outside of China; and manufacturing different communications devices for the consumer market. Huawei has over 140,000 different employees, about 46% of whom are research and development (R&D) today. It has 21 R&D institutes in different countries including China, the United States, Canada, UK, Pakistan, France, Belgium, Germany, Colombia, Ireland, India, Russia, and Turkey, and in the year 2013 invested US$5 billion in R&D.

HISTORY:

During the year 1980s, China’s government pressed forward a multi-pronged high strategy to modernize the country’s underdeveloped telecommunications infrastructure. The main component of the standard telecommunications network was the telephone exchange, and by the late 1980s several Chinese research groups were trying to acquire and expand the technology, often in association with foreign companies. Ren Zhengfei, former deputy director of engineering for the People’s Liberation Army, founded Huawei in 1987 in Shenzhen.

Rather than relying on joint ventures to secure modern technology transfers from foreign companies, Ren focused on indigenous research and well development to produce the switches. At a time when 100% of modern telecommunications technology was being imported heavily from other countries, Ren hoped to create a Chinese telecommunications company that could take on foreign competitors. Another big change for the company came in 1996, when the government in Beijing adopted a clear policy to properly support domestic telecommunications manufacturers and to limit access to foreign competitors. Huawei was often promoted by the government and the military as a national champion, and has well established new research and development offices.

INTERNATIONAL EXPANSION:

In 1997, Huawei won its first overseas contract, supplying different line products to Hong Kong-based company Hutchison Whampoa. Later that year, Huawei introduced many of its GSM wireless products and was eventually expanded to offer CMAMA and UMTS. In the year 1999, the company opened a modern research and development (R&D) center in Bangalore, India to develop a wide range of telecom software. From 1998 to 2003, Huawei entered into a contract with IBM to consult with management, and made major changes to its management and product development platform.

After 2000, Huawei increased its pace of growth in overseas markets, having acquired more than US $ 100 million sales in 2000 and setting up an R&D center in Stockholm, Sweden. In 2001, Huawei established four R&D centers in the United States, released Emansys unaffiliated Emerson for US $ 750 million and joined the International Telecommunication Union (ITU). By 2002, Huawei’s global market had reached US $ 552 million. In 2008, Huawei and Optus successfully built a mobile startup center in Sydney, Australia, providing a number of developer centers to develop new wireless and -mobile Broadband in “ready for market” different products. In the year 2008, the company embarked on its first very large-scale commercial deployment of UMTS/ HSPA in North America providing TELUS’s new next generation wireless network and Bell Canada with very high-speed mobile access. In July, 2010, Huawei was well included in the Global Fortune 500 2010 list published by the U.S. Fortune magazine for the first time, at the best of US $ 21.8 billion annual sales and a total US $ 2.67 billion profit.

In 2010 it was reported that Huawei plans to invest US $ 500 million (R200 2,200 crore) to establish a telecommunications equipment plant in Tamil Nadu, India and $ US100 million to significantly expand its R&D center in Washington. In 2013, Huawei was well chosen by TDC A / S as the sole supplier to expand the GSM / UMTS / LTE national network in Denmark and provide well-regulated services over a six-year period. The value of the good contract is over $700 million over the term of the agreement.

INVESTMENT AND PARTNERSHIPS:

Huawei has commonly focused on expanding its mobile technology and different networking solutions through a number of partnerships. In the year 2003, Huawei and 3Com Corporation formed a well joint venture company, 3Com-Huawei (H3C), which focused on the R&D, very good production and sales of data networking products. The company later divested a 49% stake in H3C for US$880 million in the year 2006. In 2005, Huawei began a well joint venture with Siemens, called TD Tech, for high developing 3G/ TD-SCDMA mobile communication modern technology products. The US $ 100 million investment gave the company a 49% stake in the top company, while Nokia tends to hold 51%.  

In 2007, after the launch of Nokia and Nokia Nokia Networks, Nokia transferred all types of shares held on TD Tech to Nokia Nokia Networks. Currently, Nokia Nokia Networks and Huawei typically hold 51% and 49% of TD Tech shares respectively. Huawei and American security very well firm Symantec announced in the year 2007 the formation of a joint-venture company to highly develop security and some storage solutions to market to telecommunications carriers. Huawei initially well owned 51% of the new company, named Huawei Symantec Inc. while Symantec owned the rest. The joint-venture was usually based in Chengdu. In March, 2012, Symantec announced the sale of its portion of the well joint venture to Huawei.

RECENT PERFORMANCE:

In the year 2011, Huawei announced an earnings increase of 30% in 2010, driven by high significant growth in some overseas markets, with net profit rising to RMB23.76 billion (US$3.64 billion; £2.23 billion) from RMB18.27 billion in the year 2009. In the year 2010 sales outside China continued to be the main driver of Huawei’s business. Overseas revenue rose 34% to RMB120.41 billion in the year 2010 from RMB90.02 billion in 2009, fueled by some regions including North America and Russia. Revenues from China rose 9.7% to RMB64.77 billion, as the common country’s big telecom operators reduced their investment last year.

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