Huawei

Indri - The company was founded in 1987 by Ren Zhengfei, a former People's Liberation Army. Huawei has initially focused on the production of telephone switches, and has expanded its business to include the creation of telecommunications networks that provide operational and consulting services and equipment to businesses inside and outside China and produce communications equipment for the consumer market.  Huawei had over 170,000 employees since September 2017, and about 76,000 were involved in research and development (R&D). It has 21 research and development institutions worldwide. From 2017, the company has invested DKK 13.8 billion. USD in research and development.

Huawei has implemented its products and services in over 170 countries, and since 2011 has earned 45 of the 50 largest telecommunications companies. [Need for quotation to be verified] Its network, which exceeds 1,500, reaches a third of the world's population. In 2012, Huawei passed Ericsson as the world's largest manufacturer of telecommunications equipment and surpassed Apple in 2018 as the world's second largest smartphone maker behind Samsung Electronics. Rated 72 on the FortuneGlobal 500 list. In December 2018, Huawei reported that annual revenue increased to $ 108.5 billion. USD in 2018 (a 21% increase over to 2017). Huawei is widely regarded as the world's leading 5G provider.

Although internationally successful, Huawei has been facing some difficulties in some markets due to cyber security charges - primarily from the US government - that Huawei's infrastructure includes backdoors that could allow Chinese government surveillance. Especially with the development of 5G wireless networks, there have been calls from the United States to prevent the use of Huawei's or other Chinese ZTE telephone companies by the United States or their allies. Huawei has stated that its products do not represent "a greater risk to computer security" than those not found by any other supplier and that there is no evidence of US espionage statements. Nevertheless, Huawei withdrew from the US consumer market in 2018, after these concerns had affected the ability to market their consumer products.

History Huawei

In the 1980s, the Chinese government tried to modernize its underdeveloped telecommunications infrastructure. A basic component of the telecommunications network consisted of telephone exchangers and in the late 1980s several Chinese research groups tried to acquire and develop the technology, generally through joint ventures with foreign companies.
Ren Zhengfei, former deputy director of the People's Liberation Force's engineering corps, founded Huawei in 1987 in Shenzhen. Instead of relying on joint ventures to secure technology transfers from foreign companies, often reluctant to transfer their most advanced technologies to Chinese companies, Ren sought to decode foreign technologies with local researchers. At a time when all Chinese telecommunications technologies were imported from abroad, Ren hoped to build an internal Chinese telecommunications company that could compete and eventually replace foreign competitors.

The company reports to have 21,000 RMB in registered capital at the time of its creation. The Far East business magazine also reported receiving a $ 8.5 million loan from a state bank, even though it denied the loan's existence.

During its early years, the company's business model consisted mainly of reselling PBX (Private Branch Exchange) switches imported from Hong Kong. Meanwhile, it was reverse engineering that imported shifts and invested heavily in research and development to produce their own technologies. In 1990, the company had approx. 600 R&D employees and started their own commercialization of PBX switches for hotels and small businesses.

The company's first major breakthrough came in 1993 when it launched its telephone contact controlled by the C & C08 program. It was by far the most powerful switch available in China at the moment. The company has begun to implement in small towns and rural areas with an emphasis on service and customization, and has gained market share and entered the general market. The company also developed collaborative relationships with local authorities, after which it would yield "dividends" to local officials in exchange for using Huawei products in the network. Ahrens writes that these methods were "unorthodox adjacent to the corrupt", but not illegal.

Huawei also obtained a key contract to build the first national telecommunications network for People's Liberation Army, an agreement that an employee is termed "small in terms of general activities, but large in relation to relationships". In 1994, founder Ren Zhengfei met with the party's Secretary General Jiang Zemin and told him that "switching technology was linked to national security and that a nation that did not have its own switching equipment was like missing its own army." Jiang this review.

Another important turning point for the company dates back to 1996 when the Beijing Government adopted an explicit policy to support national telecommunications producers and restrict access to foreign competitors. Huawei has been promoted by both the government and the army as national champion and has set up new research and development agencies.

Product and Service Huawei

Huawei announced its business in January 2011 to provide network infrastructures, fixed and wireless communications solutions, data centers, and cloud computing solutions for global telecommunications customers. Huawei said it wanted to increase corporate sales to $ 4 billion in 2011 and $ 15 billion within three to five years.

In 2016, Huawei Business Group launched a new marketing logo that defines its position for the corporate market, "Leading New ICT, Building a Better Connected World" at CeBIT 2016.

Huawei is organized around three main segments:

  1. Telecom Carrier Networks, construction of telecommunications networks and services
  2. Enterprise Business, Providing Equipment, Software and Service to Business Customers, eg Government Solutions - see Huawei 4G eLTE
  3. Devices, production of electronic communication devices.

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