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Summary

The recent Huawei Analyst Summit (HAS), held in Shenzhen, China, highlighted Huawei’s latest innovations, business practices, and solutions in domains including 5G, cloud services, video, the Internet of Things, artificial intelligence (AI), and digital transformation. Huawei also discussed its strategy in these fields while announcing its results for the first quarter of 2019.

The Middle East has contributed 25% of Huawei's total 5G contracts to date

By end of March of this year, Huawei generated CNY179.7bn ($26.7bn) in revenue, an increase of 39% year-on-year. The company's net profit margin for the period was about 8%, slightly higher than the same period last year. The vendor maintained its focus on infrastructure and smart devices where it continued to boost the efficiency and quality of its operations, which helped contribute to its announced results.

By the end of March 2019, Huawei had signed 40 commercial contracts for 5G with leading global carriers and had shipped more than 70,000 5G base stations to global markets. The vendor stated that 10 contracts (25%) came from the Middle East region. Ovum expects 2019 to witness a large-scale deployment of 5G around the world, meaning that Huawei's Carrier Business Group has opportunities for growth.

Enterprise group announces new strategies

During the event, Huawei's Enterprise Business Group launched its digital platform and its new "Huawei Inside" strategy. Huawei's Enterprise Business Group also deployed what it calls the world's first 5G-enabled Wi-Fi 6 access point. By end of March, Huawei claimed more Wi-Fi 6 shipments than other known vendors globally.

Huawei Cloud, now part of the Huawei Enterprise group, aims to build better and innovative hybrid cloud solutions, provide full-stack AI solutions for intelligent industries, and make inclusive AI a part of its product. The vendor said that than 1 million enterprise users and developers have chosen to work with Huawei Cloud since its announcement in 2015.

At the conference, Huawei Cloud also released ModelArts, its AI model market as a one-stop-shop AI development platform, which came first in both image classification training and inference in the Stanford DAWN Bench deep learning competition, a comprehensive deep learning benchmark and global competition.

Although Huawei highlighted general strategy and Asia-Pacific use cases, we expect Middle Eastern enterprises to slowly follow suit in adopting Huawei's services in the region as they become available and as the AI strategy matures and reaches levels closer to those of global hyperscale players such as Amazon and Google.

Appendix

Further reading

“Huawei held the top spot again for RAN revenue in 2018”, SPT002-000205 (April 2019)

“Huawei focuses on network simplification and service enablement for its 5G strategy”, GLB007-000194 (January 2019)

Author

Tareq Masarweh, Senior Consultant, EMEA

Tareq.Masarweh@ovum.com

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