After years of patience, Huawei is quitting the US

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Update: The speculation in the article below is referring to the carrier network business, and not the entire Huawei entity as a whole. Here’s the official statement

Long story short, the comment that was made reflects the realities of our carrier network business in the U.S.  The growth of our carrier network business is primarily from developed markets in other parts of the world. Considering the situation we currently face in the U.S., it would be very difficult for the U.S. market to become a primary revenue source or a key growth area for our carrier network business.  Nevertheless, our U.S. employees remain committed to providing quality services for our customers.

It is no surprise that Huawei has been suffering in the United States due to the government’s interference in almost all of its bids, even in the private sector. The company has been suffering this scrutiny for almost a couple of years now, and there is no sign of that going away anytime soon. The Chinese company has been patient till now and has been trying to sell its products and services, but not anymore. The company has officially announced that it is no more interested in doing any kind of business in the United States and that it will be shifting its focus to the European and Asian countries.

All this is because there are security concerns with the devices that the company sells. There is a belief that the company puts some kind of monitoring device into its products which can monitor the environment around the device and send that data back to China, which can be used against the United States by the Chinese government.

One of the reasons for this belief is credited to the history of the founder of Huawei, Ren Zhengfei, who once served as an engineer in the People’s Liberation Army. And it is believed that Ren Zhergfei still has ties with the Chinese government. Tech Crunch writes, “According to a report in the Financial Times, executive vice president Eric Xu said at the company’s annual analyst summit yesterday that Huawei “is not interested in the U.S. market any more.””

The company has even revised its long term goals or outlook and says that the generation $15 billion by 2017 is “too optimistic.” And the company has brought down that number to $10 billion. But the unit’s chief executive, William Zu, still believes that the revenues can grow up to 45% this year, up from 25% growth in the last year, 2012.

Source: Tech Crunch