Chinese telecom equipment maker Huawei has overtaken Ericsson in terms of first half revenue in 2013. The difference in revenue is around $2 billion.
In the first half of 2013, Huawei posted revenues of $18.54 billion (CNY 113.8 billion) against Ericsson’s $16.65 billion (SEK 107.4 billion). ( Huawei revenue increased 10.8 percent to $18.54 billion (CNY 113.8 billion) in the first half of 2013 )
Huawei and Ericsson cannot be compared on apple-to-apple basis since Huawei has presence in mobile devices and enterprise businesses. Ericsson has presence in OSS-BSS and a part of broadcasting business.
Huawei’s $18.53 revenue in the first half of the current year came after it executed long term strategies in carrier network business, enterprise business, the consumer business and improved operational efficiency. Huawei’s new strategies were driven at innovation and customer centric approach.
The Chinese telecom equipment maker on Wednesday said it expects to generate a net profit margin of 7-8 percent in 2013. The growth is revenue is significant for the Chinese ICT equipment maker as it is waging a battle in several markets due to its alleged association with Chinese government.
Ericsson’s global sales of SEK 107.4 billion in H2 2013 came from SEK 56.3 billion from telecom network business, SEK 46.3 billion from global services and SEK 4.8 billion from support solutions. Huawei is yet to share break up of revenue for its main verticals.
In the second quarter of 2013, Ericsson posted growth in revenue at $8.4 billion (SEK 55.33 billion) from SEK 55.32 billion. Its net income increased to SEK 1.5 billion from SEK 1.2 billion.
Earlier, Huawei said the contribution of the telecom network equipment business will be reduced to 55 percent in the next five years from 75 percent.
The revenue share of consumer business group will increase to 30 percent, from 20 percent. It is also targeting its enterprise business to contribute 15 percent of the company’s revenue by 2017 against 5 percent at present.
Note: We calculated dollar based on the current exchange rate.