Huawei now no.2 telecoms vendor, Ericsson maintains leadership
Despite a spending slowdown by operators worldwide, Huawei Technologies manage to double its profit last yet.
The privately-held Chinese vendor yesterday announced a full-year profit of 18.3 billion yuan (USD$2.7b), up from 7.85 billion in 2008, on sales of 149.1 billion yuan (USD$21.8b).
According to chief marketing officer Ken Hu:
- From 36 in 2008, Huawei claims to have now supply 45 of the world’s top 50 operator
- operating margin improved from 12.9% to 14.1%
- cash flow improved 39%
- Huawei predicts year-on-year revenue growth of 20% in 2010, driven by increased broadband rollouts, smartphone adoption, and higher demand for professional managed services
The result makes Huawei the most profitable telecom vendor and the second biggest in the market by sales, overtaking Alcatel-Lucent and Nokia Siemens Networks during the year.
Market leader Ericsson last year posted USD$29 billion in revenue and USD$1.6 billion in net income.
Alcatel-Lucent recorded €15.15 billion ($20.4b) in sales but finished €524 million in the red.
