Huawei, a company for now and for the future

March 31, 2015

huawei-kenhuHuawei posted a profit of almost 4.5 billion dollars in 2014, which is almost a third higher than the previous year; this was achieved on a 20.5% higher turnover of 46.5 billion dollars.

Naturally Huawei have been very upbeat about their growth, CEO Ken Hu claimed “The strong growth of our revenues in 2014 can be attributed to the continued focus on our strategy, while reaping the benefits from management reorganization and improving efficiency.”

What’s certain is that Huawei have not been shy of spending money on research and development. In the last decade Huawei has spent a whopping 30 billion dollars on research, but its results clearly suggest this has been money well spen,t and has brought it to the point of being the fourth biggest vendor of smart phones.

A company, of course, is only as good as the people who work for i,t and rotating CEO Ken Hu certainly seems to be a man with a vision, as could be seen at this year´s Mobile World Congress in Barcelona, where his vision for lightning speed internet access, namely 5G and the implications it would have for revolutionizing the industrial world had people sit up and take notice of both the message and the man.

With an expected  10 GB per-second download speed, the potential of 5G is truly awesome, and though the mobile technology sector is already huge and has seen exponential growth over the last 2 decades, 5G can truly make it massive, and be an integral part of almost every industry, making our world a ‘super connected’ place.

While Huawei is a long way off from competing in sales terms with the big two, Apple and Samsung. In an area where market share is never guaranteed year on year, it’s nevertheless as established as any company can be in this sector. What´s clear is that the scale of the mobile technology sector in the future is set to dwarf its current size. Whether Huawei is one of those companies that are still at the fore is not certain, but the signs are encouraging. Certainly if the vision, the innovation and solid management continues then Huawei represents a really good investment when you take in the potentially enormous rewards versus a low-medium level of risk.