Huawei abandons interest in the US

News General United States 24 APR 2013
Huawei abandons interest in the US

Chinese telecom equipment maker Huawei has ended its push for business in the US after seeing its efforts blocked repeatedly over security fears, reports the Financial Times. Executive vice president Eric Xu said at the company's annual summit with analysts on 23 April, "We are not interested in the US market any more".

Huawei has not won contracts from any leading operators in the US. Sprint Nextel and its Japanese suitor Softbank gave the House intelligence committee in March a promise that they would not purchase Huawei equipment. The Chinese company currently employs 1,400 people in the US, but its R&D workforce has fallen to 500 from 800 and its sales team has been reduced.

Huawei has revised the long-term outlook for its enterprise business to USD 10 billion by 2017, versus its previous target of USD 15 billion, described by the unit's chief executive, William Xu, as being too optimistic. The enterprise division's revenue is forecast to rise by 45 percent this year, after growing by 25 percent in 2012.

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