Company Shows Growth Amid Concerns on Cyber Security
Huawei Technologies the world’s no. 2 makers of telecom equipment is targeting a 10 percent annual growth through its cloud computing and smart phones amid foreign government accusations of the company aiding intelligence agencies. The company became one of the top smart phones in the world for the first time.
Huawei has been fighting off concerns from Canada to the United States on the the safety of cyber security in the market, in which a US congressional committee said that both Huawei and ZTE Corp. are providing opportunities for the Chinese intelligence services to use the telecom networks and use it for spying. But an analyst at Guosen Securities Co. based in Hong Kong said that the US will only limit the company expansion in the core telecom equipment sector and it won’t affect the sales of their high end smart phones.
Sales from smart phones rose 8 percent or 220 billion yuan which helped boost their net income to 32 percent or 15 billion yuan. And in January the company estimated that their revenue will increase as much as 12 percent this year.
In 2011 the U.S. have barred Huawei in participating in the building of a nationwide emergency network when Sprint Nextel Corp and Softbank Corp. announced that they won’t integrate their equipment with the Chinese company once they merge. Then in 2012 Australia also barred the company in bidding on their national broadband network citing national interests.
The company might also face additional restrictions in Canada after its Prime Minister and its government is now reviewing if they need rules that govern the equipment that will be used by the country’s biggest mobile phone operators and is now consulting industry officials on this matter.