Huawei 2012 Profits Expected To Grow By 29 Percent

Chinese telecoms giant Huawei has announced it is expecting profits of $2.4 billion (£1.48bn) for 2012, a 29 percent rise from a year before, when it earned $1.86 billion (£1.86bn).

In 2010, the profits of the company were at the record level of $3.7 billion (£2.28bn).

Huawei attributes its success to new projects and expansion into the high-end smartphone business. The numbers show that recent public relation issues and the global recession didn’t have much impact on the end-of-year results.

Year of the dragon

According to the Economist, last year, Huawei became the largest ICT equipment maker in the world, after overtaking Scandinavian rival Ericsson in the summer. Founded in 1988, it still operates as a private company, owned by its 140,000 employees.

Huawei’s net profit for 2012 is expected to reach $2.4 billion, according to a New Year memo published by Reuters. The acting CEO Guo Ping also revealed that the revenue of the company for the past year could exceed $35 billion.

“We should devote our limited energy to specific business objectives, and avoid the impulse to expand business blindly,” wrote Guo. “Managers who expand business blindly must be held accountable.”

Last year, the Chinese company ran into some trust issues in the US, UK, Australia and Canada. The Intelligence Committee of the US House of Representatives even suggested that both Huawei and ZTE shouldn’t be allowed to sell their products in America.

“China has the means, opportunity and motive to use telecommunications companies for malicious purposes,” said the committee. It claimed classified and unclassified information had indicated neither Huawei nor ZTE could “be trusted to be free of foreign state influence”.

Later, the company was accused of damaging the European manufacturers of wireless networking equipment by dumping low-cost products in the EU, with the help of Chinese state subsidies.

Huawei has denied any links to the Chinese government, and claimed that the US report was based on “rumours and speculations to prove non-existent accusations”. Being vilified in the media didn’t stop the company from expanding rapidly abroad, and opening new facilities in Finland and Reading in the UK. Huawei also said it plans to double its European workforce over the next five years.

Meanwhile, Huawei’s neighbour and rival ZTE, the fifth largest telecoms equipment manufacturer in the world, reported the biggest quarterly loss since its IPO.

Huawei is expected to announce audited financial results in the next few months. Ericsson has yet to report its full-year figures.

What do you do when tech fails? Take our quiz!

Max Smolaks

Max 'Beast from the East' Smolaks covers open source, public sector, startups and technology of the future at TechWeekEurope. If you find him looking lost on the streets of London, feed him coffee and sugar.

Recent Posts

US DoJ Disbands Crypto Enforcement Team

Crypto free for all? US Justice Department is disbanding team of prosecutors who targetted cryptocurrency…

18 mins ago

China’s YMTC Publishes Memory Patent Applications

US-sanctioned YMTC publishes nearly 20 memory patent applications, showcasing innovations in efficiency and chip construction

24 hours ago

CATL ‘In Talks’ For Controlling Stake In Nio’s Power Unit

Battery giant CATL reportedly in talks to buy controlling stake in unit of EV maker…

1 day ago

BYD Launches Luxury Denza EV Brand In Europe

Chinese EV giant BYD launches high-end Denza brand in Europe to compete with Mercedes, BMW…

1 day ago

US Power Utilities Receive Massive AI Data Centre Requests

US power companies say in some cases data centre requests exceed their peak demand or…

1 day ago

Microsoft Ends Projects With Wicresoft In China

Some 2,000 support staff reportedly laid off as Microsoft ends China outsourcing deal with its…

1 day ago