China's Huawei is Number One

Posted by: Bruce Einhorn on May 15, 2009

Here’s some news that should bring smiles to the faces of China’s leaders. Huawei Technologies, the Shenzhen-based company that is the largest maker of telecom equipment in China, has now grabbed the No. 1 spot globally in DSL equipment. According to research firm Ovum’s press release, “The buoyant domestic market in China has lifted Huawei to first place in quarterly DSL volume shipments for the first time ever,” said Ovum Analyst Kamalini Ganguly. The good news from Huawei isn’t just in China, though, as the company has also expanded shipments in Europe, the Middle East and Africa. In grabbing the top spot, Huawei pushes aside Alcatel-Lucent.

In third place is ZTE, China’s second-largest telecom equipment maker and an increasingly important player in cell phones. For a story about ZTE, I recently interviewed company chairman Hou Weigui at the Chinese telecom equipment maker’s headquarters in Shenzhen. I asked his thoughts about the the $586 billion stimulus plan Beijing is pushing to revive the Chinese economy. What sort of impact would that have on ZTE’s business? Hou replied that the real stimulus for the industry was China’s decision to move ahead with 3G at long last. That was delayed for years because of China’s attempts to develop its own 3G standard, but now that Beijing has finally given the green light, the big state-owned operators are spending heavily on improving their networks. As annoying as that delay was for ZTE, Huawei and many other Chinese companies, the lag in getting 3G started means the surge in business comes just as the global economy is in the dumps and Chinese companies really need the help.

Reader Comments

rob

May 18, 2009 1:52 PM

CHINA has no problem being 'first' in quantity, but the trouble is they rank 'last' in quality. They are 'first' in steel production, but rely mostly on belching stone-age steel miils to pump out low-grade steel in vast quantities.
INDIA makes far better wualtiy euqipment.

Joko

May 19, 2009 12:18 AM

Actually Rob, Huawei and ZTE products are pretty good. In Indonesia, Huawei and ZTE are dominating the communication equipments. Btw, I haven't heard anything about made in India products. What do you guys make actually that is so far better in quality euqipment?

David

May 19, 2009 2:40 AM

Joko, I tell you what india makes. They make slumdogs.

jcage

May 19, 2009 2:44 AM

"rob
INDIA makes far better wualtiy euqipment."
Can barely speak and write English even after being ruled by the British for over 300 years and now barks about quality in equipment!
What a moron!

Zind-a-bad

May 26, 2009 6:07 PM

Hahaha...One desi dimwit wags his tongue and 2 spastic indo-phobic twerps pounce..Funny...
Just for facts, there are many Telecom OEMs in India (just google it). This apart, there is a lot of cutting edge R&D going on in labs such as Analog Devices, Freescale semicon, Texas Instruments, Qualcomm etc. in Bangalore alone which churn out high end DSPs which drive these telecom products. Only the design has been happening in India where as the eventual favored bulk manufacturing destination remains China. To Rob: Our so-called BSNL ADSL 2.0 modems are all mostly Huawei modems. They are bloody robust and work in the most humid dusty conditions with few problems. Dont feel insecure. We are very competitive when it comes to designing these equipment. Its not for nothing that Huawei invested so heavily in to that swanky development centre inside Leela Palace in Bangalore. But its next to impossible to beat the Chinese when it comes to cheap bulk manufacturing. By the way, where are the Pakis? I expected them to take lead in India bashing by now ;-)

steve

December 31, 2009 6:04 AM

Regarding to the indian who claim Huawei manufacture junk, please do some research before your claim. Huawei is the leading 3g and 4g equidment provider, owning over 12% of patent of 4g technology LTE. Indian don't even have a single patent on such technology.

Gu

January 8, 2010 8:45 PM

I'm a employer of Huawei working in Europe. Our product is the most expensive in the project of HSPA of T-mobile in South Germany in 2008, because the quality of Huawei's equipment is the best. The price of equipments of NSN(Nokia-Siemens) and ALU(Alcatel-Lucent) were lower than ours. Anyway, I think patent is the most important factor of Huawei's success.

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Bloomberg Businessweek’s team of Asia reporters brings you the latest insights on business, politics, technology and culture from some of the world’s biggest and fastest-growing economies.

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