Huawei Technologies Co. Ltd is a privately owned Chinese telecommunications company headquartered in Shenzhen, Guangdong. It was founded by Ren Zhengfei and Yu Bangda, two former People's Liberation Army engineers, who were among the earliest employees of the equipment division of one of China's state-owned telecommunication companies. After leaving to set up their own firm, they had over US$100 million in initial capital and only eight staff members: four engineers and four administrative personnel. Huawei has since grown to be one of the largest telecommunications equipment manufacturers in the world. In 2003, Huawei was the leading telecommunications equipment supplier to the United States' telecommunications industry with a market share of 30%. In 2003, its revenue totaled US$4.6 billion, while its net income was US$421 million. Over the next two years, its revenue increased by 83%, while net income declined by 68%. In 2004, Huawei's revenue increased by 28%, but net income fell by 20% year-over-year. By 2005, Huawei had grown to become one of the world's largest telecommunications equipment manufacturers, shipping over 400 million units in 2004. Huawei is also the world's third largest provider of fixed line telecommunications terminal equipment. Huawei's revenues are expected to reach $56 billion for 2012, which will place it just behind Ericsson, but ahead of Alcatel-Lucent.According to a 2005 estimate by Goldman Sachs, Huawei was the largest company in the world which had no presence in the United States or Western Europe. Huawei's first overseas office was opened in Singapore on March 26, 2004. Its first office in North America was opened in Plano, Texas on April 16, 2004 by Eric Xu who managed this office from an office in Chicago. Even though Huawei is now an international company with customers around the world, there are still very few offices outside China. Its headquarters are located in Shenzhen, Guangdong Province. Huawei also has seven R&D centers (CAC) in China; one in Shenzhen, Hefei, Chengdu, Changsha, Nanjing and Wuhan; three in the United States; one in San Jose, California and two in Princeton, New Jersey; and one each in Toronto, Ontario and Dublin.Huawei is organized into four divisions: Mobile Telecommunication Equipment (MTC), Fixed Telecommunication Equipment (FTC), Network Technology (NT), Enterprise Business Group. Its worldwide network switching capacity is 100 Gbit/s. It is the largest telecommunications equipment manufacturer in the world.Huawei has become the world's leading telecommunications equipment manufacturer due to its success in large-scale carrier-to-carrier voice and data projects, especially in developing countries. Its most notable projects involve the deployment of mobile, wireless, and fiber-optic networks in Asia, Africa, Europe and South America. Huawei has served more than 500 operators in more than 140 countries with a combined market share exceeding 20 percent. As a result of its continual rise Mark Newman from Sanford C Bernstein & Co said "If you look at who will be #1 over the next five years – it's an easy call – Huawei".
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