The gap Huawei is likely to continue to increase “- New Technology

ANALYSIS. Huawei overtake Ericsson fierce momentum. Now also on the cardiovascular area – mobile networks. And the gap is likely to continue to grow.

Huawei has for several years been higher than Ericsson, based on company’s entire sales. Last year, Huawei generated sales of around 325 billion, the Ericsson 228 billion.

It is now eight years ago that Ericsson was almost double Basically it you young Chinese upstart. 2007 Ericsson had a turnover 188 billion, while Huawei’s sales were only 82 billion.

Huawei’s trip has thus been amazing. From 82-325 billion in eight years. At the same time, Ericsson has gone 188-228.

The Chinese growth has also occurred with profitability. Last year’s profit was over 30 billion. Ericsson’s operating profit was about half.

And it is not just China that Huawei sells its merchandise and services. 60 percent of sales come outside the domestic market.

An explanation of Huawei’s strong growth is the focus on mobile phones. They account for almost a quarter of sales nowadays. Another bubbler of Huawei’s business equipment, Enterprise.

There are two major markets that Ericsson chose to leave.

But on mobile systems, the Swedish telecom star continued to shine brightest. In the last annual report reiterates the company’s market position: “# 1 in the radio access”.

But even there, now Huawei thus overtaken Ericsson. It must be a hard blow for chief executive Hans Vestberg, who always tend to mention his company’s unique position in mobile systems.

Ericsson’s technical solution mobile systems are not worse. But even better, according to industry analysts who have participated in tenders. The main reason for that Vestberg lost first place right now is China’s ongoing deployment of 4G networks.

It is clearly more difficult for Ericsson to enter the Chinese operators – for political reasons. But it has been equally difficult for Huawei to enter the US operators – for political reasons. And in the US, it is Ericsson, which dominates the mobile market.

Around the turn of the year told Hans Vestberg for New Technology for its new efforts to get boost growth. This includes about routers, cloud and network society. So far, the markets are very small in comparison with mobile systems and mobile phones.

Huawei expects continued strong growth, and says it is working to increase sales by another 50 percent by 2018. Thus approximately 10 percent per year. Some equally ambitious targets have not Vestberg published.

He expects an annual growth of 3-5 percent in the markets where the Company is active between the years 2013 to 1017.

So expect that the gap is increasing.