Huawei's search for growth

21 May 2008
00:00

In a year when the Ericsson's biggest product line-wireless networks-was flat, it made a valuable contribution to top- and bottom-line revenue.

ZTE doesn't report its service revenue separately, but its services group is just a small part of a segment dominated by sales of video and monitoring equipment.

All of which may explain something about Huawei's unflinching desire for 3Com.

The professional services segment is beyond the reach of most Chinese firms. Their great strength is sophisticated electronics manufacturing at good cost. They don't have the business expertise required to drive a services business.

The obvious fresh growth space for Huawei is enterprise. And particularly on its own fast-growing and familiar patch. Enter-and exit-H3C. Now it's time for the Huawei team to execute plan B.

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