Feeds

Huawei: 'We're not interested in US market'

Cuts enterprise sales projections by one-third

Application security programs and practises

Chinese telecoms equipment maker Huawei has revised its enterprise sales projections downward after admitting that it has given up on plans to expand into the US market.

"We are not interested in the U.S. market anymore," Huawei executive vice president Eric Xu told Reuters. "Generally speaking, it's not a market that we pay much attention to."

That's a bit of an about-face. At one time, Huawei was eager to market its wares to US firms, but those hopes were all but dashed when a Congressional subcommittee issued a report indicating that equipment from Chinese vendors – including Huawei and its rival ZTE – poses a security risk.

Huawei has steadfastly denied those claims, calling the US stance "protectionism" – and indeed, Congressional investigations revealed no concrete evidence linking the Chinese vendor's gear to espionage. But the company's complaints have largely fallen on deaf ears.

In March, President Obama signed into law a new federal appropriations bill forbidding US government agencies from buying technology from any companies "owned, operated, or subsidized" by the People's Republic.

That's been widely interpreted to mean Huawei and ZTE, despite Huawei's objections that it is "entirely owned by its employees" and that the Chinese government holds no ownership stake in the company and has offered it no subsidies.

The law does not ban imports of Huawei equipment and US companies are still free to purchase it if they wish. But many firms are likely to follow the government's lead and avoid Huawei kit out of fears of industrial espionage.

American security concerns have already thrown a wrench in other, international projects as well, such as a planned trans-Atlantic network cable funded by Hibernia Atlantic.

On Tuesday, Huawei's Xu admitted that such roadblocks have had a negative impact on its enterprise division and that it no longer expects its sales to grow as rapidly as earlier projected.

Last year, execs in Huawei's enterprise division set a goal to expand sales to $15bn by 2017. Xu said the company has now revised those projections down by a third, to $10bn.

"We now have a deeper understanding of the market," Xu reportedly told analysts at a conference in Shenzen, China, where Huawei is headquartered. "If we can achieve $10 billion sales by 2017, that will be good enough for me."

Even that is an ambitious goal. The division reportedly brought in $1.9bn in sales last year, less than a fifth of its revised 2017 goal.

Meanwhile, Huawei faces further potential hurdles to its telecoms expansion plans, as governments around the world – including Australia, Canada, India, and the EU – have voiced similar security concerns to those debated in the US.

In January, Huawei reported revenues of 220.2 billion yuan ($35.6bn/£23.3bn). Enterprise sales represented just 5 per cent of that total, while sales to telecoms operators accounted for around 70 per cent. ®

Bridging the IT gap between rising business demands and ageing tools

More from The Register

next story
Apple fanbois SCREAM as update BRICKS their Macbook Airs
Ragegasm spills over as firmware upgrade kills machines
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Attack of the clones: Oracle's latest Red Hat Linux lookalike arrives
Oracle's Linux boss says Larry's Linux isn't just for Oracle apps anymore
THUD! WD plonks down SIX TERABYTE 'consumer NAS' fatboy
Now that's a LOT of porn or pirated movies. Or, you know, other consumer stuff
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
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.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.