Huawei's Mideast revenue up 18pc in 2012
Dubai, May 23, 2013
China's Huawei Technologies Co's Middle East revenue rose 18 percent to $2.08 billion in 2012 and the roll-out of 4G mobile networks and IT outsourcing will be among its main regional growth drivers, the firm said.
The world's second-largest telecom equipment maker also expects Middle East telecom operators to prioritise improving network efficiency, Shi Yaohong, president of Huawei Middle East, told Reuters in an email.
"Operators' shift toward software-defined networks, IT outsourcing and adoption of 4G ... are all going to play a key role in Huawei's future business," said Shi.
The disclosure of the Middle East revenue figures - Huawei declined to reveal its net profit or capital expenditure for the region - may be part of a broader effort to be more open, coming after the company's Chief Financial Officer Cathy Meng hosted her first news conference earlier this year to announce the company's 2012 results.
Many Middle East telecom firms, particularly in the wealthy Gulf, have unveiled 4G or long-term evolution (LTE) networks that potentially offer mobile internet speeds more than double that of 3G, but a shortage of devices has caused a slower-than-expected consumer take-up of this technology, said Shi.
Shenzhen-based Huawei is also the world's No.5 smartphone maker, competing with the likes of Apple Inc and Samsung Electronics Co Ltd.
"By expanding our local portfolio to include more smartphones, tablets and wifi routers that are compatible with technologies like 4G LTE, we hope to open up the market significantly over the next 12 months," said Shi.
"In the device realm, we recognise Huawei was hardly known to most local consumers just two years ago. Building our consumer brand will still take time."
The Middle East accounted for 5.9 percent of Huawei's $35.35 billion global revenue last year, up from 5.5 percent in 2011, according to Reuters calculations.
Huawei defines the Middle East as incorporating the six Gulf Co-operation Council (GCC) countries - Saudi Arabia, Kuwait, Qatar, Bahrain, Oman and the United Arab Emirates - plus Iraq, Pakistan, Afghanistan and Iran.
Huawei declined to provide a segmental revenue breakdown for the Middle East, but globally its carrier business accounted for 73 percent of revenue last year, while its enterprise and consumer units contributed 5.2 and 21.8 percent respectively, according to Reuters calculations.
"Our enterprise and consumer offerings are still relatively new in this region," added Shi. – Reuters
More IT & Telecommunications Stories
- Batelco unveils new business broadband package
- Mobily seals Bharti Airtel partnership deal
- VIVA launches exclusive rewards program
- US govt to shed control of net addresses
- Etisalat sets ultimatum for SIM card registration
- Acer targets double digit growth in Saudi
- UAE mobile radiation levels below global standards
- Arpu's T-Pay gateway draws top game vendors
- SAP unveils new cloud platform
- Zain launches smartphone insurance
- Windows XP users warned on usage risks
- Tecom units welcome 181 new companies
- Ooredoo chairman joins WB gender equality council
- Mobily, Jasper start wireless M2M service
- Telecom Egypt expects mobile licence in Mar or Apr
- Sandvine wins big Etisalat follow-on order
- Aveva software for engineering plant design
- Nawras to upgrade VSat services across Oman
- Mobily, Huawei sign smart network contract
- Etisalat, Tata launch video connect service
- Talia seals new partnership with Thuraya
- 4-pillar approach for telecom operators to boost growth
- Dubai mobile emissions below global standards
- Nawras signs capacity contract with SES
- Etisalat showcases satellite solutions at Cabsat
- Batelco launches 4G LTE roaming
- Gulf Air clinches best innovation award
- Viva inks Pepsi partnership deal
- Du offers free smarphones on tablet purchase
- Batelco launches double credit promotion