Huawei, the second largest gear maker for telecommunications in the world, trailing only Ericsson, has announced its 2013 growth in the United States would be hindered due to security concerns that exist there. However, the China-based company’s vice president of wireless networks, Bob Cai, said the telecom gear maker is expecting sector growth in both Europe and Asia.
Over the last half year, Huawei has been hit with two larges setbacks. In October of last year, a report released by the U.S. Congress said ZTE and Huawei’s equipment that was critical to U.S. infrastructure could help undermine the national security interest of the United States.
Both ZTE and Huawei denied the contents of the report. In another setback, Softbank and Sprint Nextel announced last week that they would not use any products made by Huawei after the two companies have merged.
Due to these two major problems, Huawei is counting on other overseas markets along with their own domestic market in China for growth. The wireless network sector for the company in 2011 accounted for more than 23% or $7.4 billion of the entire revenue for Huawei.
Seventy percent of the group’s revenue is generated outside China and the company said its largest markets to date are in Western Europe and Asia’s emerging markets like Indonesia.
The market in China will be very important to Huawei and that is evidenced in its plan to increases sales of $1 billion in 2012 on the China LTE network to over $2 billion in 2013.