Huawei Shifts Strategy in Sea of Telecom Gear

A preliminary 2010 report detailing US$ 28 billion in annual revenues appeared to cement Huawei Technology Co.'s status as the world's second-largest telecom equipment manufacturer in terms of sales, barely trailing market leader Ericsson.

Yet rather than rest on its laurels, Huawei has decided to adjust its business strategy and confront challenges of an increasingly competitive environment for telecom service and equipment providers.

The company, China's largest telecom kit maker, eventually wants to top Ericsson by transforming its business strategy and adjusting to what analysts say is an increasingly saturated market for global communications supplies – a market that's pushing profit margins lower and pressuring companies to step up research and development investment.