After several rocky years, Huawei is once again showing growth. Over the past year, they have performed well. That being said, I have a few new questions. Is their recovery sustainable? Can they build upon it? What is the next step for Huawei, and in fact the entire wireless industry? So, let us take a look and try to determine what we can expect going forward.
First, Huawei deserves congratulations for turning the ship around and starting to grow once again. Let us explore whether this recovery is sustainable, and if the company grow.
Today, Huawei is proving that even when all countries no longer support them, they can continue to show growth focusing on the countries that do.
Where Huawei fits into the changing wireless industry with AI and 5G
Now, let us pull the camera back and gain an accurate, longer-term perspective of the changing telecommunication industry, worldwide.
I remember going to a telecommunications trade show nearly twenty years ago and Huawei had a booth. They were relatively new, at least in the USA. That was back when politically, things were smooth between the USA and China.
Huawei had not yet made a brand name for themselves. Not like they have today. Over the years, they continued to grow. They showed strong growth in telecommunications and wireless networks here in the United States and around the world.
Over time, Huawei was one of many competitors. And they were simply competing. Trying to win in the growing and changing telecom marketplace.
Huawei grew globally with network tech and discounts
During the past decade, customers in countries globally split. Some continue to welcome them, their network products and services. Between discounts and innovation, this gave them a competitive advantage. Over time, they continued to win telecom and wireless deals in countries around the globe.
During that same period of time, at politics raised its ugly head, some countries globally were growing concerned about the private data which was travelling over Huawei gear and their fear about lack of security. The U.S. was one of these countries.
So, the US Congress eventually told US wireless carriers to remove Huawei gear. This has been an expensive and long process which large and small companies had to wrestle with.
Pushback from U.S. Congress created a problem for Huawei
The pushback from the U.S. Congress created a real problem for Huawei. This caused Huawei to go silent. They focused on changing and strengthening their focus and strategy. The result was they became successful once again.
After a year or two, last year Huawei reintroduced itself to the world. After coming back, they reported strength once again. Their losses seemed to have slowed and in fact reversed.
So, longer-term the question was whether this could be the beginning of a longer-term trend. And whether they could turn their fortunes around and get back into growth mode.
Now, a year has passed, and they report their growth continues and is strong. The next question is, can this good performance continue for the long-term?
Wireless industry is transforming with AI and 5G and new techology
Wireless has shown growth over decades. However, there are stronger times and weaker times. That’s the wireless game.
The telecommunications and wireless industry growth had slowed. Rather than just waiting for the 5G wave to begin, AT&T quickly acquired DirecTV, WarnerMedia, CNN, Warner Brothers Studio and more. That’s also when Verizon acquired AOL and Yahoo.
Both companies had big dreams for a while. Then, both AT&T and Verizon, who had been struggling in their new direction, suddenly failed and withdrew. They stumbled along for several years trying to recover.
Next, 5G and now AI finally began and gave purpose to the wireless carriers here in the United States and in fact, the world.
Huawei, Qualcomm, Ericsson, Nokia, ZTE showed growth
5G wireless poured fuel on the flames for Huawei, who along with Qualcomm, Ericsson, Nokia, ZTE and others also showed growth.
Now, the industry moves forward toward new growth with new technology like AI, IoT, streaming, the cloud and so much more. We are starting to see wireless, and telecom grow once again.
I expect the wireless and telecom industry to grow and change over the next decade focused on 5G and AI and whatever is coming next.
Remember, the industry can and often does change growth direction on a dime. It has done so in the past and continues today. Remember when the data networks and the iPhone and Android were introduced. Back then Blackberry was at the top of its game. Before that, Motorola led the way.
But with iPhone, Android and the exploding app market, things quickly changed. Previous leaders like Blackberry, Motorola and so many others fell to the bottom of the list of competitors.
Wireless industry continues to grow and change with AI and 5G
So, the wireless industry is a fast moving and changing space. New leaders can quickly take hold sending old leaders to the bottom of the list.
What will happen in wireless and telecom going forward will be growth and change. What the world will look like five years from today, ten years and beyond will be very different.
AI will play a growing role in the future of wireless. Plus, other new technology will enter as well.
That means there are massive growth opportunities and challenges ahead. Who will lead this new space is one important question.
Huawei obviously wants to be one of the global leaders. Their good performance over the past year is a positive sign for them. Especially, if it can be a sign for long-term success.
However, there is a long way to go before we can accurately predict who the long-term winners and losers will be. It will be an ongoing journey. So, stay tuned.
