Chinese technology giant Huawei continues to ahead of main rival Ericsson in its annual revenue from carrier business for 2015.
Huawei generated $35.94 billion revenue (+21 percent) or RMB 232.2 billion from carrier business – supported by its 4G deals with telecom network operators. Huawei’s total revenue was $61 billion or RMB 395 billion last year.
Ericsson, the Swedish technology major, created total revenue of $30.38 billion (+8 percent) or SEK 246.9 billion.
Ericsson, which announced its annual earnings on 27 January, could not take on Huawei in revenue terms despite slew of deals and acquisitions.
# Huawei makes $36 billion revenue from carrier biz
# Ericsson makes $31 billion revenue from total biz
Huawei said its Carrier, Enterprise, and Consumer Business Groups generated CNY 395 billion or $60.8 billion (+37 percent) in annual revenue.
Carrier business generated CNY 232.3 billion or $35.8 billion (+21 percent) in annual revenue.
Enterprise business generated CNY 27.6 billion (+44 percent) or $4.3 billion.
Huawei’s enterprise business experienced growth in the public safety, finance, transportation, and energy sectors.
Huawei’s consumer business reported 73 percent increase in revenue to CNY 129.1 billion or $19.9 billion.
In 2015, Huawei invested 15 percent of its annual revenue – CNY 59.6 billion or $9.2 billion – in research and development.
CEOs are optimistic
Hans Vestberg, president and CEO of Ericsson
In 2015, we had good progress in all our targeted growth areas and we continued to invest in order to establish leadership. Sales grew by more than 20 percent reaching SEK 45 b., corresponding to 18 percent of group sales.
The partnership with Cisco, announced in the quarter, will give us end-to-end network solutions with a complete IP portfolio. As a result of the partnership, we will extend our addressable market and expect to generate $1 billion or more of additional sales by 2018. Additional sales are expected to be accretive to operating income in 2016.
Guo Ping, deputy chairman and rotating CEO of Huawei
Our growth is a direct result of strategic focus and heavy investment in our core businesses. Over the next three to five years, we will concentrate on enhancing connectivity, enabling the development of vertical industries, and redefining network capabilities.