Battle With Apple Takes a Toll on Chinese Phone Giant Huawei
- Net income rose at slowest pace since a decline in 2011
- R&D spending set to reach as much as $20 billion annually
Patent certificates at Huawei Technologies.
Photographer: Brent Lewin/BloombergThis article is for subscribers only.
Huawei Technologies Co.’s earnings grew at their slowest pace in five years, as China’s biggest maker of telecommunications gear sank money into research and a marketing blitz to gain ground on Apple and Samsung in smartphones.
Huawei, founded by former army engineer Ren Zhengfei three decades ago, has emerged as one of China’s most recognizable consumer brands. A relatively new entrant in mobile devices, it’s rapidly grabbed market share from Apple Inc. and Samsung Electronics Co. with premium phones and is now ranked third globally. But that expansion comes at a cost, as the company boosts spending to keep up.