Huawei Clarifies Statement on Lack of Interest in US Market
Published on: 26th Apr 2013
Note -- this news article is more than a year old.
Huawei has slightly backed away from comments made by its Executive Vice President Eric Xu that the company has lost interest in the USA market.
Speaking at an analyst conference earlier this week, Mr. Xu was widely quoted as saying, amongst other things, that "We are not interested in the U.S. market any more."
The company has struggled to enter the US market due to the ongoing, if often denied, concerns about the company's links to the Chinese military.
A Huawei spokesperson, Scott Sykes later clarified that: "Mr. Xu's statement reflects the realities of our carrier network business in the USA", adding that "Considering the situation our company currently faces in the U.S., it would be very difficult for the U.S. market to become a primary revenue source or a key growth area for our carrier network business in the foreseeable future."
He did also note that the company is committed to its existing customers and remains an active participant in the country.
Asia-Pacific Region and Europe accounted for about 60% of Huawei's revenue in 2012.
However, the European Union is currently investigating allegations that both Huawei and ZTE are beneficiaries of indirect state aid, particularly in the form of generous credit terms from state-controlled banks. If upheld, the companies may find access to the European market hampered in the long term as well.