Feeds

Huawei wants to be telepresence king

Dethroning Cisco and massive domestic retail rollout to chase US$100b revenue goal

The essential guide to IT transformation

Chinese telecoms and handset giant Huawei has its sights on dominating yet more markets, with plans to leapfrog Cisco to top spot in the video conferencing space in three years and to expand its retail presence in thousands of domestic bricks and mortar stores to boost handset sales.

Huawei’s sales of telepresence kit doubled last year to reach around $200m (£123.3m), placing the company second with a market share of around 20 per cent, Huawei Enterprise GM Li Jun told Bloomberg.

By contrast, arch rival Cisco is in the lead with half of the market and revenue of around $900m (£554.6m).

Video conferencing is just one way Huawei is trying to expand beyond its core business of telecoms infrastructure and realise its goal of tripling revenue to $100bn (£61.6bn) by 2021.

Another is its handset business.

Huawei is currently ranked number six in the world but is looking to grow that part of the business to rival its revenues from flogging networking kit. This is especially important given Huawei is finding it tough to make any money from the latter in the US or Australia, where national security concerns over the Chinese firm have yet to be allayed.

With that in mind, Huawei is planning to tap the huge domestic market by rolling out branded counters in around 4,000 retail locations across China in stores run by big name local players Suning, Gome and D.Phone, according to China Daily.

It will also be launching some flagship stores of its own in tier-one cities such as Beijing, Shanghai and Guangzhou, with over 4,000 retail staff ready to man the counters across the People’s Republic.

Dana Cooperson, VP network infrastructure at analyst Ovum, told The Reg that the market opportunities are there for it to reach its ambitious $100bn revenue target.

“Huawei is an amazing learning organisation. They constantly improve across multiple dimensions. They hire a lot of very good people all over the world. They are no longer the ‘follower’ they once were,” she added.

“If you’re asking if they are capable of being an Apple, it’s doubtful. But I do think they have an opportunity to innovate around areas such as connecting the network to the device and providing a superior customer experience. Very few vendors have the opportunity to do this.”

Huawei couldn’t immediately be reached to elaborate on its plans. ®

Build a business case: developing custom apps

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
XBOX One will learn to play media from USB and DLNA sources
Hang on? Aren't those file formats you hardly ever see outside torrents?
Class war! Wikipedia's workers revolt again
Bourgeois paper-shufflers have 'suspended democracy', sniff unpaid proles
'Aaaah FFS, 'amazeballs' has made it into the OXFORD DICTIONARY'
Plus: 'EE, how shocking, ANOTHER problem I face with your service'
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.