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ONE thing about Huawei is easy to understand: its ambition. In Paris on May 7th the
Chinese telecoms company showed off the Ascend P7, a sleek smartphone compatible
with the speedy fourth-generation mobile-phone networks being built in many countries.
Huawei started pushing its own brand of smartphones only in 2011, but by last year it was
the world ’s third-biggest vendor. Though it is still far behind the leaders, Apple and
Samsung, it hopes that phones like the P7 will help it close the gap. In its main business,
supplying network equipment and services to telecoms operators, it is already a close rival
of Ericsson of Sweden. Last year this part of its operations brought in about 70% of its
revenue of 239 billion yuan ($39 billion).
Huawei ’s ownership and management are less well understood. Some American
politicians and competitors regard the company as little better than a front for the Chinese
state, partly because Ren Zhengfei, its chief executive, was an engineer in the People ’s
Liberation Army before he founded Huawei in 1987. Its network equipment has in effect
been shut out of the American market. Huawei has always denied being under the
state ’s thumb. It says that 84,000 Chinese employees own almost all its shares (Huawei
is rolling out a long-term incentive scheme for foreign staff). Mr Ren has a personal stake
of only 1.4%.
In this section
From bazaar to bonanza
Seeking its own path
Profitable interruptions
Lawyer ’s poker
Payback time
Holding their nerve on the Nile
The next 20 years
The sixth continent
Bumpkin bosses
Reprints
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Huawei Technologies Co. Ltd.
Unlike Alibaba and other Chinese technology companies that have sought stockmarket
listings, Huawei has no such plans. Mr Ren made
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