Huawei is set to increase its research and development budget to 15 per bet of its annual revenues, as it looks to strengthen its market share in the global telecommunications sector, reported Total Telecom.
Speaking at the company’s annual Huawei Analyst Summit in Shenzhen, Eric Xu, rotating chairman of Huawei, said that the company must help to drive innovation. He further said that Huawei thinks that technological innovation is a key driver for their future growth and therefore the company pledge to invest 15 per cent of their revenue into research and development to safeguard their market share. Xu also expressed his concern about Huawei to be a pioneer in a fully connected smart world.
By 2025, Huawei estimates that there will be 6.5 billion mobile phone users across the world, compared with 4 billion today. The number of smartphones will increase from 5 billion in 2018 to 8 billion in 2025.
The company expects strong growth in its consumer business group over the next few years and has actively upped its game in terms of smart phone handset sales. With the company’s proposed play for the US market on hold, following recent US legal action, Huawei will be targeting strong growth in European and Asian markets.
Huawei is also forecasting growth in the fixed line market, predicting that penetration levels for gigabit capable home broadband services will rise from less than 1 per cent on 2018 to 30 per cent by 2025. By 2025, the company estimates that broadband penetration levels will it 75 per cent. Huawei believes that by investing in R&D and setting out its strategy to 2025, the company will be able to strengthen its hold on the telecommunications market in the years to come.
