Huawei's net profit exceeds Ericsson: or will become the leading global telecommunications equipment

On January 31, 2013, the latest earnings report released by Ericsson shows that last year, revenue was basically the same as Huawei, while net profit was only one-third stronger than Huawei, which means that Huawei ushered in surpassing Ericsson to become the global leader in telecommunication equipment. opportunity.

The financial report shows that Ericsson’s annual revenue is SEK 227.8 billion (US$35.9 billion), its annual net profit is SEK 5.9 billion (about US$900 million), and its net loss in the fourth quarter is SEK 6.3 billion (about One billion US dollars).

Huawei’s previously announced results show that last year’s revenue was approximately US$35.3 billion and net profit was approximately US$2.5 billion. Comparing the performance of Ericsson and Huawei, which has been ranked first and second in the industry for many years, can be seen that the two are basically equal in terms of revenue. Huawei has far exceeded Ericsson in net profit.

Xiang Ligang, a communications industry expert, believes that the cost advantage of Chinese companies makes Huawei more profitable. As for the ownership of the industry leader, Xiang Ligang said that it is more appropriate to wait for Huawei to surpass Ericsson and lead a certain period of time.