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you were watching television TV hi welcome to another ColdFusion video over the past year we've probably noticed huawei appearing in headlines along with Samsung and Apple as it turns out they're much bigger than just smartphones they're a huge force in the world of telecommunications way before they even released a smartphone today we'll see how the Chinese giant grew to be one of the largest telecom manufacturers in the world and why they're at the center of so much controversy Huawei Technologies was set up in 1987 by ren zheng fee usually the founders of companies are young and vibrant but ren was different he was in the midst of a midlife crisis and in his mid 40s when he founded the company he had plenty of technical expertise from his time as a deputy director of the People's Liberation Army Engineering Corp so from the very beginning the company has been tired in some way to the Chinese government this will come into play later in the story at this point in time in the late 1980s China was a long way behind the Western world when it came to telecommunication despite having a population of over 1 billion there were just two hundred thousand phone lines when the 90s began Huawei set up in Shenzhen a small fishing village that has since become the Silicon Valley of China only 30 years later firstly the company imported switches from Hong Kong a country which sat just across the river from China the components were switchboards that allow the company to manage multiple internal and external phone lines the demand was huge as China pushed to modernize and those also a desire for a locally made Chinese product rather than relying on imports so hawawa set up a huge research and development department that focused heavily on analyzing the equipment that was coming in and attempting to reverse-engineer it within a few years they had made the most of China's huge cheap talent pool of engineering graduates and created their own switchboard they sold these throughout China with government support and soon began to focus on a digital version of the switch in 1993 the strong focus of research and development continued as they set up new facilities in Beijing and Shanghai and by 1996 they had their first international client albeit only in Hong Kong the most important development for hawawa was the appearance of a global system for mobile coupled with the incredible adoption of the mobile phone since their founding Huawei had always been playing catch-up with the rest of the world fighting just to match what was already being made but the mobile phone leveled the playing field this was a new technology for everyone now Hawaii's research facilities became an enormous asset as they leveraged them to sign partnership deals with many of the biggest tech firms from Intel to Sun Microsystems to Motorola and Microsoft by 1997 they had their own GSM equipment in the market what many other company is focused on handsets who always main products or for running the mobile networks themselves they beat major players like Siemens and Ericsson to win a contract to upgrade Berlin's communication network in the same year they created the world's first and largest Wireless LAN network by now there were a global presence they had a 1,000 person research facility in India sales office in Berlin and major contracts in the Middle East and we're starting to look towards Europe in 2004 while we shipped their first phone the c300 this would be the first step in an extensive rise to dominance the name hawawa translated directly from Chinese means Chinese achievement and with a net worth of over eight billion dollars it seems that the company has done just that today Huawei are the second largest phone manufacturer ahead of Apple and behind Samsung but they are looking to challenge Samsung from the number one spot in 2019 the high-end smartphones have been largely praised with their may 20 pro model winning and blind smartphone camera test by Markus Brownlee with a subject sample size of over seven million people Huawei is currently the largest telecom equipment manufacturer in the world with most countries using their equipment in their telecommunication infrastructure more in this later the company has a very interesting management style in order to stay creative and always flowing with fresh ideas Huawei periodically rotates the CEOs every six months they have a 1.5 million square meter campus with Castle style buildings to move around the campus employees can take a train ride Huawei has their own Technology Park and the University at their headquarters in Shenzhen complete with student housing qualified IT graduates from the university are then offered careers in hawawa afterwards the company employs 180,000 staff the average employee age is 29 years old the company has invested over 60 billion dollars in R&D alone in the last 10 years on the point of the University and Technology Park will seem a similar thing with Samsung it seems like the Asian philosophy to business is very different especially when the companies involved have close ties to government it reminds me of how the United States was pouring money into science research and universities during the 1960's after the Sputnik launch such efforts resulted in the internet back then but today this may partly explain why Samsung and hawawa are exploiting in success I wish more countries who put a dedicated focus towards the synergy between education and business but despite all of these impressive feats Huawei has a massive trust problem in his infancy the company was more or less an offshoot of the People's Liberation Army the company claimed that it had later restructured to be collectively owned by its employees but some question to what degree the Chinese government is still involved this has been a major stumbling block for a number of big international deals this is for two main reasons firstly Huawei are accused of getting government subsidies that allow them to undercut the other big players they already have access to cheap labor but if they're subsidized it's unlikely any private business can compete with them on cost the second more major reason is if the Chinese government is involved then potentially they have access to the data flowing through the equipment of all the networks Huawei supplies equipment for networks used all over the world the NSA CIA and FBI have accused Huawei of being a front to spy on US and Canadian communications Huawei has denied these claims that many experts aren't so convinced the UK Japan Germany and Italy have all been persuaded not to use Huawei infrastructure in December of 2018 produced telecom began dismantling Huawei infrastructure this comes after New Zealand and Australia stopped using Huawei equipment for these security reasons Huawei smartphones aren't widely sold in the United States in December of 2018 the CFO and daughter of the founder of the company megwin Zhu was arrested in Canada as you see in my upcoming video China Big Brother Edition the Chinese government loves to get their hands on as much consumer data from any Chinese company at home or abroad so this panic may not be unfounded so with all of these accusations of mistrust where does the company stand today well with an annual revenue of over 92 billion dollars and being one of if not the biggest patent file of any company in the world and having 197 14 500 companies use their equipment while selling 200 million phones in 2018 it's fair to say that they're doing well Huawei will keep focusing on research as it always has but in Western nations if they want to see more growth in smartphones or otherwise they must gain trust a task much easier said than done so that is the story and size of Huawei it's interesting to look at how they started but also the security concerns that aren't as well known if you've enjoyed this video let me know this has been to gogo you've been watching cold fusion if you just stumbled across this channel feel free to subscribe I'll sure you'll find a lot of interesting stuff around here I'll see you again soon for the next video cheers guys have a good one

32 thoughts on “How Big is Huawei? (Sells More Phones Than Apple)

  1. I believe that you never visited China during 1990s. During those years as long as your product is good, cheap and acceptable to Chinese consumers. Then immediately you become rich. Of course government contracts are more lucrative than the private contracts. And I believe that no one company can grow big without the support from the Government during the initial years. One thing you should understand Chinese company’s profit margins is too low if compared to American Companies. So, failure for just one time will make the company bankrupt directly. To reduce risk most companies will take advantage of Government policies.
    As you know Chinese savings rate is far more higher than Americans and that why China bought a lot of low interest rate American Treasury Bonds. This directly enhance the Americans liquidity and directly benefited the Americans companies with cheaper interest rate financing.
    Based on basic investment strategy that you can’t put all the eggs into a basket, so Chinese Government also lending out money to the third world countries by funding their infrastructure projects that will benefit the mass majority.
    With the limited resources, do you think the third world countries can afford to give the contacts to a high margin expensive contractors??
    I am using iPhone, iPad, iPod but if I going to change any of these, I will no consider Apple because it is too expensive for me.
    I can’t understand Americans mentality, on one side say freedom and human rights but on the other side doing all opposite. Everything you said must supported by proof. Allegations on spy on consumers but no valid proof showing to us.
    The existing rules mainly set by US but now US doing things that against these rules. All the while Americans keep theirs promises and adhered to the obligation/agreement, but now a duly signed agreement just tore off just like that without consult your member countries.
    We followed what you directed in order to get some decent surplus in trade but after some years you “award” us with currency crisis.

  2. Just remember, Huawei is a national security threat to America without a trade deal with China. After a trade deal is completed, Huawei is not a national security threat. Orange Hitler's logic.

  3. America has been investing heavyly in tech industries thrugh military avenues but have been shown to be spying on the world and influencing other countries to target competing with any Chinese company that has better tech.

  4. I agree with the conclusion: Huawei must gain trust, a task much easier said than done. Just think about the facts: the US government suspects Huawei is spying the world, so they conduct rounds of survey desperately trying to find tiny pieces of evidence but failed. The UK tried but couldn't find any evidence. Not enough? Germany scrutinized Huawei's source code, only to find there's nothing to be suspicious about. With all the tons of evidence here, the US government still publicizes that Huawei is not safe. Please tell me, what's the foundation for this assertation? Just as you said, a task much easier said than done—-it is basically mission impossible if the US is just playing dirty.

  5. OMG, the US government just suspects Huawei has connections with the Chinese government. But here, Coldfusion firmly concludes there are connections merely based on Ren served in the army in his early life. I think the way you are talking is a very dangerous move: you are assuming a suspicion to be a fact and indoctrinate the suspicion to our audiences, and many audiences would be influenced without further knowing facts. Please let the FACTS talk.

  6. As if the other phones aren't totally under the thumb of the 5-Eyes surveillance grid and jurisdiction. I trust Huawei more than any company that is based in a region that believes that it has 'jurisdiction' over me.

  7. When it comes to China, things are skewed, and since Huawei is heavily funded and even founded by Chinese govt. and/ or people belonging to it, it is fine if they are denied access to the core network infrastructure of any country but, other than that the bans are little more extreme, and seemed to be put in place to simply increase pressure on the company. Anyways this will start another round of local alternatives to global products and services made in China viz. WeChat for Facebook, Tencent QQ for WhatsApp, Weibo for Twitter, Toudou Youku for YouTube, etc.

  8. US 4G companies will lose billions of dollars if they are not protected. Almost everyone using 4G technology will switch to 5G, a more superior technology….means switching from all US 4G companies to HUAWEI 5G.
    Well done US 👍
    Good luck China 😎

  9. What people don't understand Huawei IS a State own disguise as private company!! In China if you are not a Communist party member don't can't do ANY business in China. The CEO of Huawei IS Party member and used to work in military intelligence!! And the company is funded heavily by the Communist government!! ALSO GOOGLE, FACEBOOK, YOUTUBE AND TWITTER, etc are BANNED BY THE COMMUNIST CHINA GOVERNMENT!!

  10. The US pawns support US views so they can buy from the USA making them richer. BY THE WAY, forgot NSA leaks from Snowden? US never spyies on anyone.

  11. I worked for Huawei for a few months. This asshole is spouting pure propaganda. Huawei become the LARGEST telecommunications company the the world is 20 years. It is much more than phones. For all of the paranoia about spying, nothing has been proved. No backdoors have been found.

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