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What Controversy? Huawei Sales Up 10%

Its latest unaudited results for 2013 estimates sales will hit US$39.29 – $39.62bn, up 8%-11%, with a target of 10%, the ICT giant said yesterday. 

Chinese-owned Hauwei says the results show “continued strong growth and sales momentum.”

Huawei, now among the top 5 smartphone brands globally, also saw operating profit, up as much as 40% to $4.72bn – 4.85bn, and said it achieved new business growth across carrier network, enterprise and consumer groups. 

Huawei mobile devices are sold by Telstra, Vodafone and its telcom equipment is widely used by carriers, worldwide. 

But it has been enveloped in controversy in Australia, and was banned from working on the multi billion dollar NBN by the Labor government, due to concerns about  spying by the Chinese government, which has links with the company. 

Despite this, the company went on a business drive in Australia last year, seeking to develop local partnerships. 

It also sponsored the Sydney Festival in a bid to boost its image and brand image. 

75 percent of Huawei’s carrier network revenue came from the world’s top 50 telecom carriers, while the proportion of revenue from services, software in the carrier business increased to 37%. 

CFO Cathy Meng said “openness, cooperation, and win-win are core Huawei values.” 

“We advocate and adhere to open collaboration across the industry value-chain and continuously strive to build business ecosystems that are characterized by resource and risk sharing, as well as win-win benefits, while providing high-quality, innovative products and services to our customers.” 

The telecoms giant is dumping billions into its R&D kitty – $5.4 bn or 14% of revenue in 2013, its greatest amount ever and has committed $600 million towards research into 5G networks by 2018, as it looks for the next big thing in mobile.  

“Every year for over the past 10 years, Huawei has invested more than 10 percent of sales revenue in innovation. In 2013 alone, the company’s investment in R&D reached CNY33 billion, accounting for about 14 percent of our sales revenue,” Meng said.

Huawei also implemented management restructure and operating efficiencies, shifting its operating model from function-centric to project-centric – to improve operating profit margin.