Huawei's Investment in R&D Ranks a Leading Position
In 2018, Huawei invested USD 15.3 billion on its research and development. After statistics, Bloomberg found that Huawei’s R&D investment increased by 149% from 2014 to 2018.
In 2018, Huawei’s R&D investment exceeded CNY 100 billion which attracted the society’s attention. On Apr 26, Bloomberg reported that Huawei, which wishes to lead the next generation wireless technology, is walking into its goal with a speed that seldom enterprise could catch up with. In 2018, Huawei invested USD 15.3 billion on its research and development. After statistics, Bloomberg found that Huawei’s R&D investment increased by 149% from 2014 to 2018. Only Amazon has a greater increase than Huawei, which was 210%. Meanwhile, famous companies such as Apple, Microsoft, and Samsung, their R&D investment increasing speed cannot catch up with Huawei during the same time period.
In addition, in terms of the gross investment in research and development of wireless technology, Huawei ranks 4th, and the top 3 is Amazon, Alphabet, and Samsung. In terms of the R&D ratio, in 2018, Huawei spent 14% of its revenue into R&D, which ranked 2nd place and only after Alphabet. Beyond that, from 2014 to 2018, the total R&D investment of Huawei was CNY 368 billion, which equals to USD 58 billion in the average exchange rate and ranked 7th place. Amazon ranked 1st during the same time period in terms of the total R&D investment.
GUO Ping (郭平), the rotating presidency of Huawei, said that during the past 5 years, the CAGR of Huawei’s revenue increased 26%, and the CAGR of Huawei’s net profit increased 21%. In 2018, Huawei’s cash flow was CNY 74.7 billion, which was a little bit less than that of 2017, due to the increase in R&D investment. The continuous investment in R&D brings a great return to Huawei. By the end of 2018, Huawei owned 1970 patents of 5G standard and ranked 1st place in the world. On Apr 16, 2019, Huawei announced that by Apr 15, Huawei has signed 40 5G commercial contracts and established more than 70 thousand base stations all over the world.
XU Wenwei (徐闻伟), the chairman of Huawei strategic institute, said that in the future, Huawei will invest USD 300 million every year to cooperate with academy partners to promote the research and development on basic science, basic technology and technology innovation. On Apr 25, Huawei held its Huawei cloud Singapore Summit, during which Huawei published the Singapore Cloud & AI innovation lab. Edward Deng (邓涛), President of HUAWEI CLOUD Global Market said: "Singapore is an international center of innovation, also a strategical hub for China-funded and overseas enterprises in the Asia-Pacific region. HUAWEI CLOUD attaches great importance to development in Singapore and the Asia Pacific. HUAWEI CLOUD provides industry-leading full-stack intelligent cloud services to bring together government, universities, enterprises, and partners to innovate, and to help accelerate their intelligent transformation."
HUAWEI CLOUD also announced the launch of its "Go-China/Go-Global" plan to help more enterprises develop worldwide services. The company is committed to providing the worldwide Internet, gaming, finance, and video markets with a series of unique, advantageous services that connect users globally, adapt to various networks, and lead in new trends.