Huawei Reports Growth in Revenue even when Avoided by US Market
Huawei Technologies reported that its net profit has increased by 34 percent as of last year due to a stronger demand of local telecommunication carriers in shifting to faster mobile networks. The Shenzhen based telecommunication equipment maker stated that its net profit went up to 21 billion yuan up from 15 billion yuan in 2012. While operating profits has also increase 41 percent or 29 billion yuan from 20 billion yuan in 2012 as from revenue, an 8.6 percent growth was seen or 239 billion yuan compared to 220 billion yuan in 2012.
Huawei spent 30 billion yuan in 2012 for research and development and in the past year its revenues and earning sees a steady growth even when a majority of the global telecom operators were apprehensive in increasing their spending on networking equipment. The deployment of the 4G mobile network by Chinese carriers propelled new business opportunities for the company.
Huawei was also in the spotlight as the company was accused by the US National Security Agency of spying, but if the actions were indeed true the company condemns such accusations that might allow distrust in their internal corporate network as communications are constantly monitored.
Reports on spying has further complicated the debates surrounding Huawei and in 2012 the US congress recommended that US telecom carriers avoid using technology developed by Huawei.