Latest statistics from Huawei, a leading global information and communications technology (ICT) solutions provider, published that it owned 25% of the world's patents in the field of 4th generation mobile communication technology (4G) now.
The mobile communication technology is now entering a new period of 4G. However, Chinese mobile manufacturers have to face the biggest obstruction, which is the deficiency in developing the key microchips. Nevertheless, Huawei has proved to the outside world that Chinese companies are capable of doing something remarkable on the international stage.
According to Meng Wanzhou, CFO of Huawei, the sales revenue of Huawei in 2014 is estimated to reach 287 billion Yuan to 289 billion Yuan globally, increased by 20%. Meanwhile, with an approximate profit margin of 12%，its 2014 gross profit is estimated to achieve 33.9 billion Yuan to 34.3 billion yuan, roughly flat with 2013. According to the open data, 2014 has witnessed the fastest growth year in sales revenue for Huawei since 2011.
Compared with the 20% growth in sales revenue and high-speed growth in smart-phone sales, 15% of business increase for mobile telecom carrier business group, Huawei's core telecommunication equipment manufacturing department, is a relatively smooth one. Even so, this number is still impressive, according to an inside watcher. Driven by the expanding investment into 3G and 4G network development worldwide, the total expenditures from China into 4G network constructions account half the world in the last fiscal year. In 2014, Huawei has laid out wide market arrangements in exploring 4G markets, driving mobile telecom carrier business group's sales increasing directly. At present, Huawei has built 154 4G networks, representing 46% among the world's 300 LTE networks.
"As a matter of fact, Huawei has injected an accumulative of 188 billion Yuan on R&D in the last decade, and this contributed to Huawei's leading role in 4G field." Says Meng Wanzhou. In 2014, Huawei was among the top 50 applicants in USA and ranked the top 15 at the European Patent Office. "All these figures show that Huawei has attached great importance to innovation and IPR layout. Now, it has a strong competitive advantage in 4G field, both home and abroad." says Song Linqing, a representative from a Beijing-based patent agency.
For a long time, Huawei has injected significant capital into R&D, innovation and developing key technology. Right now, it has developed not only 4G technology, but also 5G technology. An estimated 600 million Dollars will be spent on developing 5G. In 2014, 1/3 of the contracts from China Telecom, China Unicom and China Mobile Communication Corporation, China's top 3 mobile operators, have been singed with Huawei. Also, Huawei have been involved in construction of 600,000 4G/LTE base stations in 2014.
"Huawei's rapid growth is benefited from the 4G network upgrading projects launched by domestic mobile telecom operators." Says an IPR expert. Meanwhile, Huawei itself has always been focused on innovation and quality strategy, and has owned many core technologies in 4G field. Other domestic companies vowing to make greater achievements like Huawei, should not only spend enough money on R&D, but also develop more core technologies and pay more attention to product quality.
(Source: China IP News)
