LyrArc Article Gist
Huawei plans to increase R&D spending by 20% in fiscal 2012, compared to 34% the prior year.

LyrArc Article Gist
Huawei has increased R&D spending to $4.7 billion in 2012, close to market leader Ericsson's R&D spending in 2012 of $4.8 billion.

LyrArc Article Gist
As Huawei's young engineers go through a learning curve, the company faces challenges of giving them additional business experience. Huawei is working to instill western practices and culture in its enginers by expanding overseas, and hiring seasoned engineers in Europe to mentor the younger Chinese engineers. Of the 23 Huawei R&D centers, 13 are located outside China. Huawei adds engineers right out of college- 50,000 employees were added in the last 5 years right out of college. Of the 149,000 employees, half work in R&D. Average age at Huawei is 29 years. In this sense Huawei is unusual for a high tech company compared to western companies. It is a plus for Huawei in the long run, but it means a lot of training is needed. Lars Bondelind, the Swedish head of wireless marketing at Huawei, describes these challenges at the 2012 Barcelona Mobile World Congress. Bondelind says the Chinese engineers he works with have higher knowledge and expertise than newly graduating Swedish engineers, the challenge is training them in western engineering and business practices....

LyrArc Article Gist
Huawei's investment to compete in smartphones with Samsung, Nokia and Apple is one of the main reasons for a 53% drop in profits in 2011.

LyrArc Article Gist
Huawei founder Ren Zhengfei comments on Tesla, Silicon Valley and BMW.

LyrArc Article Gist
Huawei shows a strong first half 2015 for smartphone sales. Smartphones priced over $300 sales for Huawei were up 70% in the first half of 2015. Huawei plans to launch a Nexus phone with Google Inc. in 2015. Smarphone shipments were 48.2 million units for the first half 2015. By comparison Xiaomi sold 34.7 million smartphones in the first half of 2015. Huawei has gained brand name recognition and passed Xiaomi in sales. Of the 48.2 million smartphones sales of Huawei 20 million were in markets outside China, increasing competition for Apple and Samsung. Huawei now has 7.9% market share worldwide for the 2nd quarter 2015, according to TrendForce, in 3rd place after Samsung and Apple. In revenue terms Huawei has nearly doubled sales revenue in smartphones because of more phones in the higher price range, going from the $3.87 billion in first half 2014 to $7.23 billion in first half 2015. This strategy is evident in Europe where Huawei has invested in brand recognition by sponsoring soccer teams. In just one quarter from the 1st quarter 2015 to the second quarter Huawei has doubled market share in Western Europe from 3% to 6% in smartphones, according to research firm Canalys. ...

LyrArc Article Gist
Suspicions of Chinese government connections have dogged Huawei, China's big telecom maker, as it was founded by an army officer. Huawei has shown interest in Motorola's network equipment unit, but bidding for this will wait till 2011. The U.S. represents only $319 million in sales out of a total global sales of $21.5 billion for Huawei. To change the image and to get deals done Huawei has hired Sullivan and Cromwell, Skadden Arps, and Arnold & Porter law firms.

LyrArc Article Gist
The rotating management system for top management at Huawei and the leadership of Ren Zhengfei provides a different kind of leadership at a leading Chinese company. The young average age of its engineers is also another aspect of the company and signals unique potential.

LyrArc Article Gist
Huawei launches its smartphone model the Ascend P6 at the historic performing arts location Roundhouse in London. Huawei is using the same marketing tactics used by Apple and copied by Samsung to get customer attention. Huawei, the second largest supplier of telecom equipmen after Ericsson of Sweden, is not known for its consumer products. This is the first time it is adopting high profile marketing strategies to upset the duopoly of Apple and Samsung in the smartphone market. Other competitors are LG, ZTE, Sony and Lenovo, each trying to take market share from Apple and Samsung. Apple lost over 5 points of market share in smartphones in 2012 and Samsung gained close to 4 points by coming up with a low priced range of smartphones. Apple now has 17.3%, Samsung 32.7%, LG 4.8%, Huawei 4.6%, ZTE 4.2%, for 1st quarter 2013. Samsung now faces competition in the lower priced segments from Huawei, Lenovo, ZTE and HTC, companies in China with products for this segment.

LyrArc Article Gist
Huawei moved into third place passing RIM Blackberry and Nokia in smartphones with about 5% market share in the 4th quarter of 2012, according to IDC. Huawei increased market share with its strategy for cheaper smartphones.