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April 03, 2012

Huawei Jumps to Second in Wireless Equipment Sales

The fourth quarter of 2011 was profitable for many wireless venders, but Huawei did especially well, according to a research study conducted by ABI Research. Huawei leapfrogged Nokia Siemens Networks (NSN) for the number two spot in the wireless network equipment market.

ABI Research released highlights of its market data report, which showed earnings for Huawei exceeded expectations in the fourth quarter by generating $2.53 billion in preliminary revenues. This puts Huawei second to only Ericsson, the market leader for some time now, which generated $3.5 billion in the fourth quarter of 2011.

“Huawei had an exceptionally good fourth quarter,” said Aditya Kaul, practice director of mobile networks, commenting on Huawei’s success. “Preliminary quarterly results of $2.53 billion for wireless networks were up 54 percent quarter-on-quarter and 38 percent year-on-year. As a result, Huawei grabbed second place from NSN in wireless network equipment market share for the fourth quarter of 2011.”

NSN also did well in the fourth quarter despite falling to the third spot in the wireless equipment market, generating $2.4 billion, according to the report.

The ABI report pointed out the fourth quarter of last year was not as strong as the final quarter in previous years. The final quarter of 2011 was therefore the most profitable overall for the wireless equipment market last year.

Jim Eller, principal analyst wireless infrastructure, offered an explanation for the decrease in spending last year. “Wireless network operators did not spend as much in the fourth quarter as they have in past years, presumably taking a cautious approach due to uncertainty of the macroeconomic situation,” he said.

Despite the slightly lower numbers last year, Huawei managed to increase its sales by 38 percent to position the company comfortably in front of NSN with a 20.9 percent market share. Ericsson in the top spot owns a 26.1 percent share of the wireless equipment market.

Edited by Braden Becker

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