Huawei looks to organic growth, not acquisitions
November 28, 2013 Category Uncategorized
Huawei Technologies, the third-largest smartphone vendor, is focusing on a gradual growth strategy instead of acquisitions to chase Samsung Electronics and Apple for market share, Vice Chairman Eric Xu said. “We’re not expecting an explosive development of our smartphone business, rather we want to grow that business step by step,” Eric Xu told reporters in London. “Ultimately we want to be the leading brand worldwide in smartphones, but it will take a while to get there.” Xu confirmed Huawei’s smartphone growth target of 10% this year and next. The company is relying more on handsets while it fights cyber security concerns that have restricted its access to the U.S. and Australian phone equipment markets. Huawei, China’s largest supplier of telecommunications networks, isn’t planning an acquisition to bolster its position because of potential product overlaps, he said. The comments would damp speculation over a link-up by the Chinese company with takeover targets such as France’s Alcatel-Lucent and BlackBerry of Canada. Huawei hasn’t held any discussions with BlackBerry, said Xu, who is also acting CEO under a rotating arrangement set up two years ago by the closely-held company. Huawei shipped 12.5 million smartphones in the third quarter, taking 4.8% of the global market, trailing only Samsung’s 31% and Apple’s 13%, researcher International Data Corp (IDC) said last month. Huawei is closely trailed by Lenovo Group, which held 4.7% of the global smartphone market in the quarter with 12.3 million units shipped, and LG Electronics at 4.6% with 12 million unit shipments, according to IDC. Smartphones helped boost Huawei’s sales 11% in the first six months this year to CNY113.8 billion, the South China Morning Post reports.
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