'Cheap China' era ends as factory workers wise up

[FairAndUnbiased]

Telecom Company = Service provider, like AT&T, BT, and NTT.
Telecom Equipment Company = Ericsson, Samsung, Huawei, etc.


Ok


Not necessarily. R&D is a major expense, which is a minor cost to Huawei.



Nope, try newer data.

Huawei's 2011 profit drops 53% despite jump in revenue - FierceWireless



1.8 billion / 32.3 billion = 5.57%

Nope, try newer data

Individual.com

Huawei's plucky R&D punt | Technology Spectator

Could Huawei 2012 become the next Bell Labs?

Huawei responded to a drop in profits in 2011 by increasingly spending on R&D rather than cutting all expenses. Over the past few years it has continued to hire large numbers of engineers across the board, reaching a total of 62,000 with 11,000 added in 2011 alone. It believes it has matured beyond following or even leading the industry and now seeks to steer the industry direction.

Historically, industry-leading R&D has not been a pure numbers story. Earlier this year at the OFC conference, Huawei made a big push to demonstrate advanced technology both on the show floor and in prestigious post-deadline technical papers. At the time, we speculated that only Huawei is in a position now to take over the industrial research mantle from Bell Labs. We don’t know at the moment how many of the 62,000 R&D staff are part of the corporate 2012 lab. Whatever happens though, the new research lab is already sounding different from the 20th century model where top researchers were free to pursue their own directions. One of the stated purposes of the corporate R&D function, in addition to business unit R&D, is rapid response to changing needs – a sort of hybrid cloud model for engineers if you will.

 

[Korean]

Huawei responded to a drop in profits in 2011 by increasingly spending on R&D rather than cutting all expenses.

That proves that Huawei's profit was driven by a lack of investment in R&D. The moment Huawei invests in R&D, the profit nose-dives.

 

[FairAndUnbiased]

That proves that Huawei's profit was driven by a lack of investment in R&D. The moment Huawei invests in R&D, the profit nose-dives.

no lol. Huawei has consistently spent over 15%-20% of revenue as RD.

http://online.wsj.com/article/SB10001424052702304811304577365910091135848.html


SHENZHEN, China—Huawei Technologies Co. will increase its research-and-development spending nearly 20% this year to $4.5 billion, as the company moves aggressively to expand beyond its core telecommunications business.

The Chinese company said at an analyst meeting on Wednesday that it will look to increase its business in the faster-growing mobile-device and enterprise-network markets to meet a target of 15% to 20% revenue growth for this year. Huawei's revenue rose nearly 12% to 203.9 billion yuan ($32.3 billion) last year.

Samsung's RD spending is a mere 5.5% of revenue.

donga.com[English donga]

In a quarterly report released Wednesday, the tech giant said it invested 7.5 trillion won (6.5 billion dollars), or 6.5 percent of sales, in R&D in the first nine months of this year, up 6.1 percent from 6.9 trillion won (6.02 billion dollars) a year earlier. Samsung spent 5.5 percent of sales on R&D in 2009 and 6.1 percent last year.

The thing with Samsung is that even though absolute numbers are bigger, Samsung is a conglomerate with interests from electronics to shipbuilding to aerospace. Huawei is tightly focused on telecom hardware. Therefore, Samsung's RD intensity is far lower than Huawei's.

 

[Korean]

no lol. Huawei has consistently spent over 15%-20% of revenue as RD.

Huawi's R&D expenditure is not productive then, since Samsung is miles away from Huawei in essential telecom patent count. Huawei is nobody in the telecom IP war.

My guess is that Huawei's R&D figure is an accounting scheme to embezzle fund, as Huawei is not showing the result based on the claimed amount of R&D expenditure.

The thing with Samsung is that even though absolute numbers are bigger, Samsung is a conglomerate with interests from electronics to shipbuilding to aerospace.

That number is for Samsung Electronics only.

 

[northeast]

huawei is still pretty small when compared to sumsung.

 

[shuttler]

huawei is still pretty small when compared to sumsung.

Samsung covers business beyond telecom. Huawai concentrates on telecom. An apple and orange compairson in terms of gross sizes is not too meaningful isnt it?

Huawi's R&D expenditure is not productive then, since Samsung is miles away from Huawei in essential telecom patent count. Huawei is nobody in the telecom IP war.

My guess is that Huawei's R&D figure is an accounting scheme to embezzle fund, as Huawei is not showing the result based on the claimed amount of R&D expenditure.


That number is for Samsung Electronics only.

I dont mind you keep on demonstrating your homeland childishness all the time but this is far too much! It is an outright slander if you cannot back it up with proof for it!

 

[Korean]

Samsung covers business beyond telecom.

I am talking about only telecom patents. Samsung is a major force in the telecom IP map, along with Qualcomm and Ericsson. Huawei is a tiny dot on the map.

but this is far too much! It is an outright slander if you cannot back it up with proof for it!

Then Huawei cannot explain why it has such little share of telecom patents with a supposedly large R&D budget. Incidentally, R&D expense is one of the easiest way to divert fund in accounting schemes.

 

[epsilon]

China and India are top priorities of Foreign Investors in Asia. But other countries like Vietnam, Korea, Indonesia, Singapore are also key spots to Investors. But China has'nt lost its previous Investors but some new Investors from Western Bloc are aiming India not because they are cheap and skilled but they are good in English. Still China is in top in terms of Growth, Infrastructure, HDI

Phillippines Indeed. I forgot to mention....

 

[shuttler]

deleted pending further info