juggernaut

DMC-FX7

ƒ/2.8

5.8 mm

1/50

100

Huawei is the “Cisco of China” and a whole lot more. The breadth of their product line across datacom, telecom and consumer electronics is breathtaking. Annual sales are about $10 billion and growing about 80%/year. It is a microcosm of the Chinese economic juggernaut.

At this R&D center in ShenZhen, they employ 16,000 of their 30,000 R&D Engineers ( of which 6,000 are working on 3G wireless).

Engineering graduates are paid $6K per year. After ten years of service, they are raised to $15K/year.

Huawei is privately owned by its three founders.

(I look a bit disheveled after a mind-blurring whirlwind factory tour on a golf cart…)

10 responses to “juggernaut”

benjiman

Oct 15, 2005 at 5:03 am

Thats a lot of R&D. On the cheap!

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boring fact

Oct 15, 2005 at 5:06 am

more frightening …lol

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intutum

Oct 15, 2005 at 5:12 am

yeah! that is about the size of it!

(cute picture of you in a state of awe)

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Eric Rolph

Oct 16, 2005 at 2:58 am

Like the cotton industry in America of lore.

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The Rocketeer

Oct 16, 2005 at 12:08 pm

That’s incredible annual growth for such a large company.

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jurvetson

Oct 16, 2005 at 6:37 pm

A large company, and a large country, booming…

China’s GDP growth rate has averaged around 9% over the last 25 years, the fastest growth rate for a major economy in recorded history. In that same period, 300M Chinese people have risen out of poverty, and the average Chinese person’s income has quadrupled. With no signs of slowing down for the last 10 years, China’s GDP growth has averaged over 10%.

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Todd Huffman

Oct 20, 2005 at 4:38 am

Huawei is also the 49th highest patent recipient in the world, and increasing at a rate of 50% per year.

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jurvetson

Jan 10, 2006 at 11:33 pm

Om just blogged the Newsweek article that came out on Huawei: gigaom.com/2006/01/10/huwaei/

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Todd Huffman

Jan 11, 2006 at 3:41 am

Interesting blog post.. hmmm, using major loans to undercut the competition costs. A $10 billion bet the market share they capture will make up for the interest.

I dont think they will end up being a house of cards, it looks to me like they have made some sound calculations on the level of risk they are willing to accept.

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CASSIDY PHOTOGRAPHY

Jul 15, 2018 at 3:29 pm

And, it might serve intelligence gathering, too.

Reply

juggernaut

10 responses to “juggernaut”

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