Huawei reports losses amid strong competition

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Taiwanese company Huawei said that the operating profit of the company during the first half of the year didn’t fair well, as what was originally expected. Huawei said that the operating profit of 1.37 billion during the first half of 2012 was down 20.3% from the same period of last year but was better than that of the second half a year ago. If we base it on sales, the first half of this year was up 5.1% from 16.07 billion during the first half of 2011.

Huawei is considered as the world’s second largest infrastructure provider said that the company “continues to maintain robust growth momentum although the global economic situation and telecom equipment market remains a significant challenge.” According to the company, two of the main factors for the operating profit drop are the reduced investment from telcos and the heavy competition from their rivals.

Huawei didn’t expect this to occur as a few months back a company executive said that they are expecting to grow revenues by 15-20% this year.
Huawei isn’t the lone network infrastructure vendor that reported weak sales.

Nokia Siemens Networks said that the company had an 8% drop in second quarter sales and saw sales drop every year except in the Asia Pacific region.

Image Source: mobileworldmag.com