April 1, 2015 at 14:28Huawei has increased research costs by a third and is planning to invest $ 600 million in 5G development
According to Vedomosti, in 2014, Huawei’s research and development expenses increased by 29% compared to the previous year and amounted to $ 6.6 billion. And the company's annual revenue reached $ 46.5 billion, which is 20.6% more. than in 2013.
Huawei plans for 2015 to allocate about 10% of last year’s budget for research on 5G technology. In the next few years, the company plans to invest 5G $ 600 million in development. So far, 4G technologies are developing rapidly in China, but Huawei CEO Ken Hu expects that 5G will be actively used in the country in 5 years.
In addition, Ken Hu noted that in the future, the company will take a course on the integration of wireless Internet technologies and traditional sectors of the economy, which will also include banking services and agriculture.
According to the company's financial report, net annual profit increased to $ 4.5 billion, which is 32% more than in 2013. The main reason for this growth is the introduction of 4G in the network of China Mobile, the largest mobile operator in the world in terms of subscribers. In 2014, China Mobile installed 500,000 base stations in China, a third of which were built by Huawei.
The revenue growth was also affected by the increase in profit from smartphone sales. Smartphones bring 20% of Huawei’s total revenue.
However, the smartphone market is simply "teeming" with competitors who are fighting a fierce battle: Lenovo, Xiaomi, Coolpad and ZTE. This time, Huawei managed to withstand the segment of consumer smartphones by increasing demand for mid-range and high-end devices in developing countries. By analogy with the Xiaomi Mi line of smartphones, Huawei has created its Honor line, which also increased sales.
It is also known that the company plans to increase the volume of the fund to support partners one and a half times. Over the past year, Huawei has increased its partner network by 250%, and the number of local partners of the company has reached 200. By the beginning of 2016, it is planned to increase the number of partners to 650.
Another goal of the company is to double sales in the Russian markets of network equipment and information storage systems.
Huawei plans for 2015 to allocate about 10% of last year’s budget for research on 5G technology. In the next few years, the company plans to invest 5G $ 600 million in development. So far, 4G technologies are developing rapidly in China, but Huawei CEO Ken Hu expects that 5G will be actively used in the country in 5 years.
In addition, Ken Hu noted that in the future, the company will take a course on the integration of wireless Internet technologies and traditional sectors of the economy, which will also include banking services and agriculture.
According to the company's financial report, net annual profit increased to $ 4.5 billion, which is 32% more than in 2013. The main reason for this growth is the introduction of 4G in the network of China Mobile, the largest mobile operator in the world in terms of subscribers. In 2014, China Mobile installed 500,000 base stations in China, a third of which were built by Huawei.
The revenue growth was also affected by the increase in profit from smartphone sales. Smartphones bring 20% of Huawei’s total revenue.
However, the smartphone market is simply "teeming" with competitors who are fighting a fierce battle: Lenovo, Xiaomi, Coolpad and ZTE. This time, Huawei managed to withstand the segment of consumer smartphones by increasing demand for mid-range and high-end devices in developing countries. By analogy with the Xiaomi Mi line of smartphones, Huawei has created its Honor line, which also increased sales.
It is also known that the company plans to increase the volume of the fund to support partners one and a half times. Over the past year, Huawei has increased its partner network by 250%, and the number of local partners of the company has reached 200. By the beginning of 2016, it is planned to increase the number of partners to 650.
Another goal of the company is to double sales in the Russian markets of network equipment and information storage systems.