Huawei sees 10 percent yearly growth on smartphones, cloud

Huawei sees 10 percent yearly growth on smartphones, cloud

Summary: Chinese telecoms gear maker confirmed a 32 percent jump in net profit at US$2.4 billion for 2012, and is optimistic on the industry outlook especially in growth from cloud computing, BYOD, big data and smartphones.

TOPICS: Networking, Telcos, China

Huawei is optimistic on the outlook of the telecoms industry, and is targeting a 10 percent compound annual growth rate over the next five years.

Guo Ping, Huawei's rotating and acting CEO. (credit: Huawei)

In a statement Monday, the Chinese telecoms gear maker booked a 32 percent jump in net profit for 2012 at 15.38 billion yuan (US$2.4 billion), which it attributed to improved operational efficiency. It posted sales revenue of 220 billion yuan (US$35.5 billion).

Guo Ping, Huawei's rotating and acting CEO, noted telecom networks had yet to meet the requirements for ubiquitous connections such as zero wait time, ultra broadband, and smart applications.

"In the future, ICT will continue to grow, with new opportunities coming from cloud computing, BYOD (Bring Your Own Device), and Big Data, and feature phones being replaced by smartphones at a faster rate," said Guo.

However, there is likely to be little traction in the United States market where a Huawei executive reportedly admitted international security concerns would dampen the company's growth prospects. Government officials in Europe and the U.S have advised caution when using or purchasing Huawei's equipment, as well as networking products produced by ZTE--due to their alleged links to the Chinese military.

Topics: Networking, Telcos, China


Loves caption contests, leisurely strolls along supermarket aisles and watching How It's Made. Ryan has covered finance, politics, tech and sports for TV, radio and print. He is also co-author of best seller "Profit from the Panic". Ryan is an editor at ZDNet's Asia/Singapore office.

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  • 10% growth?

    I think most people outside of Asia didn't even know that they made smartphones. How the CEO can forecast a 10% growth when some of the biggest markets aren't even tapped. Who does he think he is? the CEO of Acer? [The CEO of Acer predicted that Acer would be the #1 (or was it #2) PC manufacturer this year (I think). Instead, they dropped to 4th and could drop to 5th.]