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Recorded Strong Growth in international market which accounted for 20% of its total revenue

(16  January 2004) Shenzhen, China --- 2002 has proved to be a challenging year for the global telecom industry. Despite the fact that telecom infrastructure investment in 2002 decreased by 50% globally, Huawei Technologies has recorded strong growth of 68% in its international sales from US$328 million in 2001 to US$552 million in 2002. Huawei's international market now makes up 20% of its total sales revenue of US$2.7 billion. Compared with the previous year, the company's total sales revenue has slightly decreased by 12.42%. 

Huawei's success in the international market has not only opened a new chapter for the company's continuing growth but also shows that Huawei has become more mature in corporate management, sales and marketing and its global R&D capability.  

Domestic market

In 2002, Huawei maintained its industry leading position in China, a market that has seen tremendous industry change and heightened competition with China's joining the WTO. Altogether, Huawei's sales volume in China's domestic market amounted to US$2.155 billion in 2002.

In the fixed-line sector, historically Huawei's stronghold, Huawei has further strengthened its leading position. In year 2002, Huawei provided a total of 16 million ports of switching globally, the majority of which were used in China.

In the mobile sector, Huawei has achieved significant progress in 2002. In October, Huawei helped China Mobile to roll out its nation-wide commercial MMS service, making it the first and still the only commercial application of its kind in China.  Huawei also cooperated with China Mobile to launch the world's first mobile mode WLAN mobile data service in September. In 2002, Huawei also launched its full series of cdma2000 1X products (450/800/1900/2100MHz, cdma2000 1X EV-DO which reaches 2.4Mbps and the unique mixed plug of cdma2000 1X and cdma2000 1X EV-DO). 

Moreover, Huawei has also achieved a number of milestones in the WCDMA area, including having made the world's first WCDMA intelligent call based on CAMEL III, a commercial call based on R99 2001 June version, established China's first 3G Open Lab, launched the world's smallest and yet the most highly integrated large-capacity NodeB, opened 21 trial networks globally, and so forth.

In the datacom sector, Huawei also made remarkable progress in 2002 which is leading to a paradigm shift in the Chinese market.  Not only did Huawei win many important carrier-class projects but also many nation-wide or provincial backbone enterprise projects including applications in education, banking, finance, securities, to name just a few.

In the optical sector, Huawei won a market share of over 50% in the newly built national backbone projects amongst all major operators in China. According to RHK's latest update, Huawei continues to be No.1 in terms of market share in the optical sector both in the Asia Pacific region and China.

In the field of Next Generation Networks (NGNs), Huawei launched its U-SYS NGN total solution in June 2002 and won China's first commercial NGN contract in 2002. 

International markets

Huawei's international market expansion in 2002 is another success story, especially at a time when the whole industry has been suffering from a most severe downturn. During the year, Huawei made breakthroughs in almost all the mainstream markets, with products in application in over 40 countries including Germany, Spain, Russia, Brazil, Thailand, Singapore and South Korea. Huawei's sales in the individual markets of both Russia and Thailand exceeded US$100 million in 2002.

By the end of 2002, there were over 100 million ports of Huawei's C&C08 switches and HONET Access Network running on global telecom networks. This represents magnificent progress for Huawei, considering that it has been only in the industry for such a short time.

Huawei's HONET Access Network has entered the world's top 3 in terms of market share, according to Gartner Dataquest (June 2002).

In the wireless sector, Huawei's GSM/GPRS has been successfully used in 24 countries. The whole international sales of the wireless sector have reached US$173 million in 2002.

In the international optical network market, Huawei was awarded many contracts across the globe to provide equipment for major national long-haul backbone transmission projects, including in India (BSNL), Mexico (Telefonica) and Russia (Rostelecom). The Russian Rostelecom DWDM project, for example, started in Moscow and crossed almost the whole nation to reach Novosibirsk in the east, covering a distance of almost 4,000 kilometers, making it the longest national backbone in Russia.

According to RHK's latest report, Huawei has taken a market share of 12% in the global long-haul transmission market, and is now among the world’s top five (5) vendors in this field.

In the datacom field, Huawei products were in application in 32 countries by the end of 2002. During ITU Telecom Asia 2002 which took place in early December 2002, Huawei and BT EXACT made a joint announcement that Huawei routers had passed  BT EXACT’s strict testing. This will open the way for Huawei's full series of routers to enter the European market.

Corporate management

2002 also saw great progress in Huawei's corporate management. The company further strengthened its IPD (Integrated Product Development) and ISC (Integrated Supply Chain) implementation, with IBM Global Services acting as its consultant. All product development in 2002 was managed under the IPD program. ISC was implemented in May 2002. Huawei also started its global ERP (Enterprise Resource Planning) hand-over project that is to be completed in early 2003.

Huawei has set up joint labs in partnership with such world-leading companies including Intel, TI and SUN Microsystems. Huawei further strengthened the cooperation with them in 2002 and also started another joint lab with Microsoft in the same year.

In 2002, Huawei applied for over 1,000 patents in China (more than 300 have been authorized so far) and over 200 PCT international or non-Chinese patents. Huawei applied for 20 trademark registrations in China and over 140 elsewhere. By the end of 2002, Huawei had applied for a total of 446 trademark registrations in more than 90 countries and regions. All these have greatly helped Huawei to better protect its intellectual property rights.

Ms. Sun Yafang, Chairperson of Huawei Technologies, concluded, '2002 is over and we at Huawei have demonstrated our strong ability to survive and achieve success throughout a very challenging year. Our success in 2002 gives us a good reason to believe that our quality products, excellent service, quicker response to customers' demands and our more cost-effective solutions will enable us to perform even better this year and for many years to come. With both opportunities and challenges lying ahead, Huawei is more determined than ever to bring our accumulated experience and expertise to benefit our customers anywhere at any time.'