Revenue analysis shows Huawei is too big vs Ericsson, Nokia

Huawei digital visionAnnual revenue of Huawei from telecom network business at $35.8 billion in 2015 showed that the Chinese company is too big as compared with Ericsson and Nokia.

Revenue of Ericsson in 2015 was SEK 246.9 billion or $30.36 billion.

Nokia, following the purchase of Alcatel-Lucent, had EUR 26.6 billion or $30.06 billion revenue in 2015.

Comparing all the three top telecom network players, Huawei is well ahead of Ericsson and Nokia. Ericsson is slightly ahead of Nokia. ZTE is too small in the telecom network business.

The revenue of Nokia alone in 2015 was EUR 12,499 million or $14.12 billion.

Telecom Leaders

Huawei with $35.8 billion
Ericsson with $30.36 billion
Nokia with $30.06 billion

The important fact about Huawei is that the technology major is growing faster as compared with Ericsson and Nokia. Growth in Huawei revenue from telecom network space was 21 percent last year. Ericsson revenue grew 8 percent in 2015.

Huawe’s sale is growing substantially despite the fact that it is too cagey about acquisitions in the telecom network market. Nokia made several small and big acquisitions in the recent past. Ericsson made several small acquisitions.

Revenue mix of Huawei, Nokia and Ericsson

Ericsson generated SEK 123.7 billion from Networks, SEK 108 billion from Global Services and SEK 15 billion Support Solutions.

Huawei generated $12.06 billion Carrier Services. The significance of Huawei revenue from Carrier Services was the fact that the company achieved 19 percent increase in Compound Annual Growth Rate (CAGR) in the past five years, taking 33 percent of the total carrier BG business. The balance 67 percent revenue of Huawei came from network equipment business including software.

Nokia generated revenue of EUR 18.07 billion from Ultra Broadband Networks, EUR 6.55 billion from IP Networks and Applications, EUR 24.64 billion from networks business, EUR 1.07 billion from Nokia Technologies and EUR 921 million from other areas in 2015.

Huawei’s total revenue in 2015 was $60.8 billion — $35.8 billion from Carrier business, $4.3 billion from Enterprise business and $19.9 billion from Consumer.

In 2015 alone, Huawei invested 15 percent of its annual revenue – $9.2 billion – in research and development. Huawei’s total R&D investment over the past decade exceeds $37 billion.

Nokia’s spending on research and development was EUR 2.65 billion in Ultra Broadband Networks, EUR 1.25 billion in IP Networks and Applications, EUR 3.91 billion in networks business, EUR 270 million in Nokia Technologies and EUR 284 million in other areas in 2015.

Huawei achievements in 2015

Huawei has continued to increase investment in services, and has achieved major breakthroughs in the fields of Customer Experience Management, Network Experience PLUS, Managed Services and ICT infrastructure transformation.

Huawei constructed or supported the operation of more than 30 Service Operation Centers (SOCs) globally with the HUAWEI SmartCare CEM solution, providing services to 14 of the world’s top 30 carriers.

Huawei also provided the Indoor Connected Solution for more than 40,000 hotspots for 120 carriers in 75 countries.

Baburajan K
[email protected]