Huawei’s networking unit is leaving the US market

by: Nate SwannerApril 23, 2013

Huawei booth

When you consider the global market for mobile technology, the United States is pretty significant. We’re a large country, and are very keen on our tech. When a relatively new manufacturer, who makes some nice devices, pledges to bow out of the US market… we wonder why. When that player is Huawei, we know the answer.

After some recent incidents of spying, which can be traced back to China, Huawei came under scrutiny. Along with ZTE, Huawei was accused of some subversive tactics, and accused of assisting with spying by congress ina roundabout way. Rather than fight an uphill battle, Huawei has decided to bow out of the US.

There is a big, bold world for Huawei to worry about, and they will. Their backyard, China, is a market ready for a growth explosion. The rest of the Asian countries are also primed for rapid growth, so Huawei focussing on other markets is not going to hurt their chances any.

Huawei estimates the US accounts for around 30% of the world’s carrier business, so the decision to leave this market was not arrived at lightly. “Don’t get me wrong, I’d love to get into the U.S. market. Thirty percent, it’s a high-value market. We today face reality. We will focus on the rest of the world, which is reasonably big enough and is growing significantly.” said Huawei’s Chief Technology Officer, Li Sanqi. We’re sorry to see them go, but happy they’ll have the chance for the success they deserve.

  • OmarioAmriky

    Good ol’ America. Fucking everybody since 1776.

    • RaptorOO7

      Really, lets look at who funds those two companies and the country of origin. If they want to do business here, they could have demonstrated they were not doing anything they were accused of, but when you cut and run you leave a lot of open questions that just got answered, in the court of public opinion.

    • pasha

      what happened on 1776 ?

      • OmarioAmriky

        American Independence

    • US is becoming more and more of a sore loser…

  • Richie Hernandez

    Quite frankly, that’s a good thing. They should have left the market long ago. I don’t really like the device’s they manufacture. And well let’s just face it. The Chinese simply do not make anything as advanced as the western powers do. And perhaps Japan, St Korea and Taiwan.

    • androidfan

      “The Chinese simply do not make anything as advanced as the western powers do.”? You want to compare with your Motorola? Apple? Pfffttttt..

    • Fred Chiang

      … So many phones are made in China. The iPhone, for instance.

      • RaptorOO7

        Mfg in China is not the same as designed in China. Their goal is to offer middle to low end specs for a cheap price.

        Now if you look at Oppo, they make some very nice hardware and a competitive price as well.

    • Yeah! That’s why only half of top twenty AnTuTu devices are from China. If they were any good then all twenty would be from China.

    • Erick

      Well, their train system is pretty advanced. Maybe they have different priorities than the west? Food for thought.

      • RaptorOO7

        Their infrastructure is built cheaply, pollution is so rampant and the level of corruption actually makes our gov’t look squeaky clean.

  • foggyflute

    Working secretly and financial backed by Chinese government, leave security backdoor on network equipment for shady use, try to steal communication technology that restricted to export by US, assassinate peoples… And you think US market gonna open up for you?

    • Erick

      And assassinate people? Where the hell did you hear that?

      • foggyflute
        • Erick

          Sorry bro, that doesn’t cut it. There’s simply no factual evidence :)
          If you want to accuse someone of murder, a solid evidence is a must.

          • foggyflute

            Just enough for US companies avoid dealing with Huawei, it cut :)

          • Erick

            Did you think a death of one man will make companies forfeit million dollars deal? not to mention, there is no evidence of Huawei’s misdeed in the murder.

            Their spying accusations are xenophobic at best, US can’t prove it even when Huawei is monitored with greater scrutiny by its intelligence.

            This is simply economic protectionism, the same one China did to Google and others.

          • foggyflute

            No, but the hassle to be monitored by government and the potential backlash from users did. And I don’t believe it’s a simple protectionism when they still buy a lot of stuff from Lenovo and ZTE at same rate. It’s just Huawei get into trouble by having close relationship with Chinese government.

          • Erick

            Yeah well, it’s protectionism because it was the US that started the spying FUD when Huawei entered the market. Unlike ZTE, Huawei is gigantic, they simply don’t want more Chinese goods in the US. ZTE is also accused of spying too, btw. The difference is, they still want to persist in US market, dunno for how long.

            Lenovo has IBM in their hands, blocking them from american consumer is silly.

            Regardless, they did the right thing. If the US does not want them, then it’s time to find another buyer :)

          • foggyflute

            Yes, they did the right thing about leaving US market.

    • Same thing can be said to all US equipment maker

  • Claudia


  • Max

    So I guess Huawei can recognize a game where the only winning move is not to play…

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  • oleg86

    Well, that’s ok for me to push out of the market, if they spy on you, and Huawei and ZTE spy on Americans.

  • Roberto Tomás

    uggh. I can hear Apple now — “We could have beaten them, its no wonder they are out of the market.”
    But, at a national level, why compete when you can use lobbying tactics to obviate free trade? Come on, USA! Free trade, or die-commies-die — make up your mind already.

  • bridgebuilder78

    I’d short Cisco stocks asap. The Chinese will be shutting doors to our networking gears makers any time now.