Huawei's profitability in the Indian market has become a major challenge and will increase investment
Huawei said a few days ago that its business is recovering driven by the market segmentation of enterprises, but in the process of industry integration, profitability is still the main challenge facing the Indian marketJay Chen, CEO of Huawei India, said that Huawei will continue to invest in India, and the surviving telecom companies need to expand production capacity to meet the growing data demand. Recently, the Indian government informed that all centrally sponsored telecommunications equipment must be forced to purchase 36 kinds of domestically produced telecommunications products. At present, the notification of the Indian telecommunications sector is only applicable to government procurement, but it has also greatly damaged the large global telecommunications manufacturers, especially Huawei and ZTE in China, Nokia in Finland and Ericsson in Sweden
c company hopes to enter a higher level of technology echelon. Hen said: "profitability is an outstanding issue and a common challenge in the Indian market. Due to the experimental data war in the future if there is a gap in the screw rod, the industry is going through a difficult time. We also know that at this moment, we should increase investment rather than care about short-term interests." However, from January to September 2018, Huawei's revenue from telecommunications services, including wireless, transmission and core networks, increased by 20% year-on-year; In addition, Huawei obtained a higher business share from Tier-1 telecom companies such as Bati Telecom and Vodafone idea, which offset the related losses caused by the exit of Telenor India and Tata teleservices. Huawei is currently negotiating with its existing partners Airtel and Vodafone idea to obtain more new business
in the first nine months of 2018, Huawei's revenue from the enterprise sector increased by nearly 60% year-on-year
when asked whether Huawei will stimulate competitors such as Ericsson and Nokia to carry out new businesses through profits, Chen pointed out: "we will compete by providing unique value for the Indian market, which is not only cost-effective, but also provides great support for customers' businesses."
the slowdown in demand caused by market integration prompted Huawei to stop the assembly of telecommunications equipment at its factory in the Chennai Special Economic Zone earlier this year. Huawei's Indian business is currently realized through imports. Chen said, "no one can meet this requirement. [Telecom] The industry is a global ecosystem, which comes from the global supply chain and spreads around the world in the form of R & D and manufacturing, so as to improve driving comfort. We have to choose the best way to do business, so we have adopted a new supply route Some manufacturing efficiency in the Chennai SEZ has exceeded our bottom line. The new mode of supply looks more efficient than before. Telecommunications infrastructure is more complex than the insignificant driving force from light pressure in the equipment ecosystem and supply chain. "
however, Huawei will continue to produce its own brands Huawei and honor in Chennai through its current production partner flex