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Huawei To Raise R&D Spend Above Alphabet

Chinese-based Huawei has announced it’s raising its annual R&D budget to a whopping US$20 billion (A$27 billion) – trumping the likes of Google parent company Alphabet.

The investment seeks to establish its position as a 5G leader, despite uncertainty about its involvement in the local build.

Despite an ongoing security saga, Huawei has continued to post massive growth this year, crossing 100 million smartphone sales at its earliest point in company history.

The company’s decision to offer a highly diversified smartphone portfolio – across many price-points – has proved largely successful, with Huawei eyeing 200 million phone sales by year end.

The Chinese giant also claims it’s on track to release its first 5G smartphone and chip next year.

As published on its website, Huawei asserts 45% of total workforce (~80,000 staff) are involved in R&D.

The company reportedly spent US$13.23 billion on R&D last year – around 14.9% of total revenue. By comparison, Factset claims Alphabet spent US$16.6 billion in 2017.

The Chinese giant states it will now lift its annual R&B budget to between US$15 billion to US$20 billion.

According to ReutersChinese companies are expected to own around 10% of essential global 5G patents – a figure tipped to be lead by Huawei.

 

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