Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (4137)	1/11/2005 11:56:21 AM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

China's Huawei unveils $10bn sales target By Alexandra Harney in Hong Kong Published: January 10 2005 22:30 \| Last updated: January 10 2005 22:30 Huawei Technologies, China's largest telecommunications equipment maker, hopes to increase its international sales from $2.28bn last year to more than $10bn by 2008 as part of an ambitious strategy of global expansion. Overseas sales of $10bn would put Huawei in the top tier of telecoms equipment suppliers, based on estimated global spending by wireless and fixed-line operators of $170bn in 2008, according to Duncan Clark, managing director of BDA China, a telecommunications consultancy which is based in Beijing. The plan which was revealed by two Huawei executives envisions mostly organic growth, although the company says strategic acquisitions of smaller companies are also possible. “We have our vision to become a leading company in the telecommunications field,” said Xu Zhijun, the company's executive vice-president, in an interview with the Financial Times. Huawei's moves are being closely followed by telecommunications equipment makers and industry observers around the world, as the Chinese company's low prices and competitive products have been winning it more contracts outside its domestic market in recent years. “Huawei's expansion is so rapid that it is propelling them very rapidly into the big leagues,” said Mr Clark. “They're bumping up against the Nortels and Lucents at this rate.” In December, Huawei beat Ericsson of Sweden to supply Telfort, a Dutch mobile operator, with third-generation (3G) mobile phone equipment, its first such contract in the intensely competitive European market. After years of investment in developing countries in Asia, Africa and South America, Huawei is building a presence in Europe, the world's second largest 3G market after Japan. It has opened offices in the UK, France, Germany, the Netherlands, and research and development facilities in Stockholm. Huawei also intends to focus more on the US and Canada. “The North American market will be our next target after Europe,” said Edward Deng, president of European operations. With this expansion, Mr Deng expects Huawei's international revenues will exceed those from China starting this year a dramatic increase. In 2003, the latest year for which figures are available, Huawei's contracted orders outside China were $1.05bn, or 27 per cent of the $3.83bn total. Huawei aims to double international sales to more than $4bn this year. news.ft.com