Strategy Analytics: Home Market and R&D Investment could be the Foundation of Huawei's Survival Plan

Huawei’s sustainability will build on the performance of its carrier business.

BOSTON--(BUSINESS WIRE)--In the latest report, “Why is Huawei still so Confident? - Behind Huawei's 2021 H1 Business Results”, Strategy Analytics analyzes the business results of Huawei in the first half of 2021 and discusses why Huawei is still confident in its carrier and enterprise businesses.

The carrier business will play a more important role in Huawei’s overall business over the next several years, as its consumer business has been hard hit by the US sanctions on chipset supply. Although the carrier business revenue also dropped in the first half of 2021, the aggressive 5G network expansion by Chinese carriers is expected to boost Huawei’s performance in the next few years. Huawei’s extensive IPR portfolio should also strengthen its leadership position in telecom infrastructure in those markets where its sales are not restricted, and help the company to expand its business footprint in global ICT markets.

Guang Yang, Director, Strategy Analytics’ Service Provider Group, notes “the slow 5G rollout in China in the first half 2021 impacted on the performance of Huawei’s carrier business. But Chinese operators recently kicked off a new round of 5G deployment in new frequency bands. Huawei is the biggest winner in both the 700 MHz 5G project of China Mobile and China Broadcasting Network and the 2.1 GHz 5G project of China Telecom and China Unicom. It is expected that the fast-expanding home market will continue to be a strong growth engine for Huawei’s carrier business over the next few years.”

Sue Rudd, Director of Networks and Service Platforms at Strategy Analytics adds “Huawei plans to continue its high level of R&D investment in telecoms and to leverage its extensive IPR portfolio as it builds on long established ICT and Cloud software expertise to expand its business across the broader ICT market worldwide. Huawei will need to further exploit its early 5G scale advantage and ICT strengths to grow sustainably beyond the Chinese market.”

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Source: Strategy Analytics, Inc.

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