The Huawei logo. (Photo/CNS)
Chinese telecommunications equipment giant Huawei published its annual financial report for 2013, which showed that the Shenzhen-based company reported annual sales of 239 billion yuan (around US$39.5 billion).
The sales revenue overtook Swedish rival Ericsson, making Huawei the world's largest telecommunications equipment maker, according to a Sina Digital report.
Ericsson recorded US$35.3 billion in annual operational revenue in 2013, unchanged from the previous year, with a net profit of US$1.9 billion, the report said.
Eric Xu, Huawei's rotating and acting CEO, attributed his company's success in achieving its 2013 operational target to the recovery of the global economy, a promising market for telecommunications equipment and services, and an efficient execution of company strategies.
According to Infonetics Research, the world's six largest telecommunications equipment makers — led by Huawei, Ericsson and Cisco Systems — generated over half of the global revenue from sales of telecommunications equipment and services in 2013.
The Huawei 2013 financial report indicated that its sales in Europe, the Middle East and Africa have surged owing to demand for infrastructure networks, professional services and smartphones.
Given the development of emerging markets in Southeast Asia, Huawei has also maintained its growth in these regions, while recording a constant increase in the Latin American countries last year, the report noted.
In the mobile broadband field, Huawei maintained its lead in the sale of 4G equipment and devices and worked on the development and research of 5G technologies. So far, Huawei has released the innovative Agile Network, and established the world's first agile switch and data exchange machine with the world's largest capacity for 64T.
As for Ericsson, the multinational enterprise has established its three-direction operational model in recent years. The operations cover mobile broadband, network services and the OSS/BSS global market. Last year, Ericsson also continued with its efforts to strengthen its core operations through reinforcing modem services and purchasing Mediaroom's IPTV sector.
Meanwhile, with LTE licenses being issued, 4G has become a territory that all global telecommunications equipment providers want a piece of. An Infroma report said that Huawei and Ericsson have both beaten their competitors to take the lead in the terms of LTE network contracts.
Vincent Fu, a chief analyst at Gartner, said there were signs in 2013 showing how well Huawei has promoted its reforms. Owing to efforts made to explore new territories, the company had made its presence felt in three major markets — the market of traditional service providers, corporate services, and consumer services.
As a result, Huawei's overall operations have overtaken Ericsson, Fu stated, noting that although Ericsson is traditionally stronger than Huawei in the market of service providers, the latter is rapidly emerging as the new industry leader.
Yang Mingsheng is CEO of China Life Insurance (Group) Company, which together with its subsidiaries forms the largest commercial insurance group in China. Yang started to work for Agricultural ...