Huawei: We're Still Building Our U.S. Enterprise Business, Channel


Huawei says it's still interested in developing its U.S. enterprise business, despite recent comments from one of its top executives that suggested the company had given up on doing business in the U.S. market.

At a conference in Shenzhen, China earlier this week, Huawei Deputy Chairman Eric Xu told analysts that Huawei is "not interested in the U.S. market anymore," as reported by Reuters. Xu also said Huawei had cut its U.S. enterprise sales target for 2017 from $15 billion to $10 billion.

Francis Hopkins, director of corporate communications for Huawei's U.S. headquarters in Plano, Texas, told CRN Wednesday that Xu was referring to Huawei's U.S carrier network business, particularly business with Tier One operators, and not Huawei's U.S. enterprise business.

Huawei not only plans to continue doing business in the U.S., it's also expanding its enterprise marketing efforts and looking to build its partner channel, Hopkins said in an email.

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Huawei is planning to showcase its servers, storage, and networking gear at the Spring Interop 2013 conference next month, Hopkins said in the email. Later that month, Huawei will hold its first partner conference under its own brand, a follow-up from the one it held two years ago when it was known as Huawei-Symantec.

Huawei's decision to lessen its focus on the U.S. carrier market isn't surprising. The U.S. government has been scrutinizing Huawei's close ties to China's government and the security implications of Huawei providing U.S. carrier infrastructure.

Hopkins said Huawei's global carrier network business is primarily from developed markets outside the U.S.

"The situation in the U.S. is the same today as it was a week ago, a month ago, etc., and [Xu's comment] reflects the realities of our carrier network business in the U.S.," Hopkins said in the email.

"Simply put, the current U.S. market environment makes it difficult for this market to become a primary revenue source or a key growth area for our carrier network."

NEXT: Channel Concerns Based On Past Huawei-Symantec Experience