Ren Zhengfei, a former deputy director of the People's Liberation Army engineering corps, founded Huawei in 1987 in Shenzhen. The company reports that it had RMB 21,000 in registered capital at the time of its founding (about $5,000 at the time).
The company was founded in 1987 by Ren Zhengfei, a former Deputy Regimental Chief in the People's Liberation Army. Initially focused on manufacturing phone switches, Huawei has expanded its business to include building telecommunications networks, providing operational and consulting services and equipment to enterprises inside and outside of China, and manufacturing communications devices for the consumer market. Huawei has over 194,000 employees as of December 2019 .
The company's first major breakthrough came in 1993 when it launched its C&C08 program controlled telephone switch. It was by far the most powerful switch available in China at the time. By initially deploying in small cities and rural areas and placing emphasis on service and customizability, the company gained market share and made its way into the mainstream market.
Huawei also won a key contract to build the first national telecommunications network for the People's Liberation Army, a deal one employee described as "small in terms of our overall business, but large in terms of our relationships". In 1994, founder Ren Zhengfei had a meeting with Party general secretary Jiang Zemin, telling him that "switching equipment technology was related to national security, and that a nation that did not have its own switching equipment was like one that lacked its own military." Jiang reportedly agreed with this assessment.
Another major turning point for the company came in 1996 when the government in Beijing adopted an explicit policy of supporting domestic telecommunications manufacturers and restricting access to foreign competitors. Huawei was promoted by both the government and the military as a national champion, and established new research and development offices.
In 1997, Huawei won a contract to provide fixed-line network products to Hong Kong company Hutchison Whampoa. Later that year, Huawei launched its wireless GSM-based products and eventually expanded to offer CDMA and UMTS. In 1999, the company opened a research and development (R&D) center in Bangalore, India to develop a wide range of telecom software.
In May 2003, Huawei partnered with 3Com on a joint venture known as H3C, which was focused on enterprise networking equipment. It marked 3Com's re-entrance into the high-end core routers and switch market, after having abandoned it in 2000 to focus on other businesses. 3Com bought out Huawei's share of the venture in 2006 for US$882 million.
In July 2003, Huawei established their handset department and by 2004, Huawei shipped their first phone, the C300. The U626 was Huawei's first 3G phone in June 2005 and in 2006, Huawei launched the first Vodafone-branded 3G handset, the V710. The U8220 was Huawei's first Android smartphone and was unveiled in MWC 2009. At CES 2012, Huawei introduced the Ascend range starting with the Ascend P1 S. At MWC 2012, Huawei launched the Ascend D1. In September 2012, Huawei launched their first 4G ready phone, the Ascend P1 LTE. At CES 2013, Huawei launched the Ascend D2 and the Ascend Mate. At MWC 2013, the Ascend P2 was launched as the world's first LTE Cat4 smartphone. In June 2013, Huawei launched the Ascend P6 and in December 2013, Huawei introduced Honor as a subsidiary independent brand in China. At CES 2014, Huawei launched the Ascend Mate2 4G in 2014 and at MWC 2014, Huawei launched the MediaPad X1 tablet and Ascend G6 4G smartphone. Other launched in 2014 included the Ascend P7 in May 2014, the Ascend Mate7, the Ascend G7 and the Ascend P7 Sapphire Edition as China's first 4G smartphone with a sapphire screen.
In 2004, Huawei signed a $10 billion credit line with the China Development Bank (CDB) to provide low-cost financing to customers buying its telecommunications equipment to support its sales outside of China. This line of credit was tripled to $30 billion in 2009.
In 2005, Huawei's foreign contract orders exceeded its domestic sales for the first time. Huawei signed a Global Framework Agreement with Vodafone. This agreement marked the first time a telecommunications equipment supplier from China had received Approved Supplier status from Vodafone Global Supply Chain. Huawei also signed a contract with British Telecom (BT) for the deployment of its multi-service access network (MSAN) and Transmission equipment for BT's 21st Century Network (21CN).
In 2007, Huawei began a joint venture with U.S. security software vendor Symantec Corporation, known as Huawei Symantec, which aimed to provide end-to-end solutions for network data storage and security. Huawei bought out Symantec's share in the venture in 2012, with The New York Times noting that Symantec had fears that the partnership "would prevent it from obtaining United States government classified information about cyberthreats".
In May 2008, Australian carrier Optus announced that it would establish a technology research facility with Huawei in Sydney. In October 2008, Huawei reached an agreement to contribute to a new GSM-based HSPA+ network being deployed jointly by Canadian carriers Bell Mobility and Telus Mobility, joined by Nokia Siemens Networks. Huawei delivered one of the world's first LTE/EPC commercial networks for TeliaSonera in Oslo, Norway in 2009.
Huawei disclosed its list of board of directors for the first time in 2010. Liang Hua is the current chair of the board. As of 2019 , the members of the board are Liang Hua, Guo Ping, Xu Zhijun, Hu Houkun, Meng Wanzhou (CFO and deputy chairwoman, currently out on bail in Vancouver, after being arrested there on December 1, 2018, after an extradition request of US authorities on suspicion of Iran sanctions evasion ), Ding Yun, Yu Chengdong, Wang Tao, Xu Wenwei, Shen-Han Chiu, Chen Lifang, Peng Zhongyang, He Tingbo, Li Yingtao, Ren Zhengfei, Yao Fuhai, Tao Jingwen, and Yan Lida.
In July 2010, Huawei was included in the Global Fortune 500 2010 list published by the U.S. magazine Fortune for the first time, on the strength of annual sales of US$21.8 billion and net profit of US$2.67 billion.
Huawei announced its Enterprise business in January 2011 to provide network infrastructure, fixed and wireless communication, data center, and cloud computing solutions for global telecommunications customers.
Huawei has deployed its products and services in more than 170 countries. It overtook Ericsson in 2012 as the largest telecommunications equipment manufacturer in the world, and overtook Apple in 2018 as the second-largest manufacturer of smartphones in the world, behind Samsung Electronics. In December 2019, Huawei reported that its annual revenue had risen to $121.72 billion US dollars in 2019.
In October 2012, it was announced that Huawei would move its UK headquarters to Green Park, Reading, Berkshire.
In December 2012, Reuters reported the "deep links" existed as early as 2010 between Huawei through Meng Wanzhou (who was then CFO of the firm) and an Iranian telecom importer named Skycom. The US had long-standing sanctions on Iran, including against the importation of US technology goods into Iran. On August 22, 2018, a New York court issues an arrest warrant for Meng to stand trial in the United States. On 1 December 2018, Meng, was arrested in Canada at the request of U.S. authorities. She faced extradition to the United States on charges of violating the sanctions regime.
Huawei Technologies Co. Ltd. is the world's largest telecom equipment maker and China's largest telephone-network equipment maker. With 3,442 patents, Huawei became the world's No. 1 applicant for international patents in 2014.
In January 2015, Huawei discontinued the "Ascend" brand for its flagship phones, and launched the new P series with the Huawei P8. Huawei also partnered with Google to build the Nexus 6P in 2015.
The Huawei Watch is an Android Wear-based smartwatch developed by Huawei. It was announced at 2015 Mobile World Congress on March 1, 2015, and was released at Internationale Funkausstellung Berlin on September 2, 2015. It is the first smartwatch produced by Huawei. Their latest watch, the Huawei Watch GT 2e, was launched in India in May, 2020.
In 2016, Huawei entered the laptop markets with the release of its Huawei MateBook series of laptops. They have continued to release laptop models in this series into 2020 with their most recent models being the MateBook X Pro and Matebook 13 2020.
In September 2017, Huawei created a Narrowband IoT city-aware network using a "one network, one platform, N applications" construction model utilizing IoT, cloud computing, big data, and other next-generation information and communications technology, it also aims to be one of the world's five largest cloud players in the near future.
As of the end of 2018, Huawei sold 200 million smartphones. They reported that strong consumer demand for premium range smart phones helped the company reach consumer sales in excess of $52 billion in 2018.
Huawei has been at the center of espionage allegations over Chinese 5G network equipment. In 2018, the United States passed a defense funding bill that contained a passage barring the federal government from doing business with Huawei, ZTE, and several Chinese vendors of surveillance products, due to security concerns. The Chinese government has threatened economic retaliation against countries that block Huawei's market access. German and British intelligence agencies have pushed back against the US' allegations, stating that after examining Huawei's 5G hardware and accompanying source code, they have found no evidence of malevolence and that a ban would therefore be unwarranted. Additionally, the head of Britain's National Cyber Security Centre (the information security arm of GCHQ) stated that the US has not managed to provide the UK with any proof of its allegations against Huawei. However, on July 14 2020 the UK government announced ban on the use of company's 5G network equipment, citing security concerns.
The current models in the P and Mate lines, the Mate 30, Mate 30 Pro, Mate 30 5G, Mate 30 Pro 5G P30, P30 Pro, Mate 20, Mate 20 Pro and Mate 20 X were released in 2018 and 2019.
In August 2018, the National Defense Authorization Act for Fiscal Year 2019 (NDAA 2019) was signed into law, containing a provision that banned Huawei and ZTE equipment from being used by the U.S. federal government, citing security concerns. Huawei filed a lawsuit over the act in March 2019, alleging it to be unconstitutional because it specifically targeted Huawei without granting it a chance to provide a rebuttal or due process.
Huawei is considering opening a new research and development (R&D) center in Russia (2019/2020), which would be the third in the country after the Moscow and St. Petersburg R&D centers. Huawei also announced plans (November 2018) to open an R&D center in the French city of Grenoble, which would be mainly focused on smartphone sensors and parallel computing software development. The new R&D team in Grenoble was expected to grow to 30 researchers by 2020, said the company. The company said that this new addition brought to five the number of its R&D teams in the country: two were located in Sophia Antipolis and Paris, researching image processing and design, while the other two existing teams were based at Huawei's facilities in Boulogne-Billancourt, working on algorithms and mobile and 5G standards. The technology giant also intended to open two new research centers in Zürich and Lausanne, Switzerland. Huawei at the time employed around 350 people in Switzerland.
Huawei classifies itself as a "collective" entity and prior to 2019 did not refer to itself as a private company. Richard McGregor, author of The Party: The Secret World of China's Communist Rulers, said that this is "a definitional distinction that has been essential to the company's receipt of state support at crucial points in its development". McGregor argued that "Huawei's status as a genuine collective is doubtful." Huawei's position has shifted in 2019 when, Dr. Song Liuping, Huawei's chief legal officer, commented on the US government ban, said: "Politicians in the US are using the strength of an entire nation to come after a private company." (emphasis added).
In 2019, Huawei reported revenue of US$122 billion.
In 2019, the Australian Strategic Policy Institute accused Huawei of assisting in the mass detention of Uyghurs in Xinjiang re-education camps. Huawei technology is regarded as critical to the Chinese government's pervasive system of surveillance of Uyghurs and other ethnic minority groups.
On 28 January 2019, U.S. federal prosecutors formally indicted Meng and Huawei with 13 counts of bank and wire fraud (in order to mask the sale that is illegal under sanctions of U.S. technology to Iran), obstruction of justice, and misappropriating trade secrets. The Department also filed a formal extradition request for Meng with Canadian authorities that same day. Huawei responded to the charges and said that it "denies that it or its subsidiary or affiliate have committed any of the asserted violations", as well as asserted Meng was similarly innocent. The China Ministry of Industry and Information Technology believed the charges brought on by the United States were "unfair".
In April 2019, Huawei established Huawei Malaysia Global Training Centre (MGTC) at Cyberjaya, Malaysia, which is Huawei's first training center outside of China.
Additionally, on 15 May 2019, the Department of Commerce added Huawei and 70 foreign subsidiaries and "affiliates" to its entity list under the Export Administration Regulations, citing the company having been indicted for "knowingly and willfully causing the export, re-export, sale and supply, directly and indirectly, of goods, technology and services (banking and other financial services) from the United States to Iran and the government of Iran without obtaining a license from the Department of Treasury's Office of Foreign Assets Control (OFAC)". This restricts U.S. companies from doing business with Huawei without a government license. Various U.S.-based companies immediately froze their business with Huawei to comply with the regulation.
In the midst of an ongoing trade war between China and the United States, Huawei was restricted from doing commerce with U.S. companies due to alleged previous willful violations of U.S. sanctions against Iran. On 29 June 2019, U.S. President Donald Trump reached an agreement to resume trade talks with China and announced that he would ease the aforementioned sanctions on Huawei. Huawei cut 600 jobs at its Santa Clara research center in June, and in December 2019 founder Ren Zhengfei said it was moving the center to Canada because the restrictions would block them from interacting with US employees.
These actions have negatively affected Huawei production, sales and financial projections. However, on 29 June 2019 at the G20 summit, the US President made statements implicating plans to ease the restrictions on U.S. companies doing business with Huawei. Despite this statement, on 15 May 2020, the U.S. Department of Commerce extended its export restrictions to bar Huawei from producing semiconductors derived from technology or software of U.S. origin, even if the manufacturing is performed overseas. In June 2020, the Federal Communications Commission designated Huawei a national security threat, thereby barring it from any U.S. subsidies. In July 2020, the Federal Acquisition Regulation Council published a Federal Register notice prohibiting all federal government contractors from selling Huawei hardware to the federal government and preventing federal contractors from using Huawei hardware.
During the sanctions, it was noted that Huawei had been working on its own in-house operating system codenamed "HongMeng OS": in an interview with Die Welt, executive Richard Yu stated that an in-house OS could be used as a "plan B" if it were prevented from using Android or Windows as the result of U.S. action. Huawei filed trademarks for the names "Ark", "Ark OS", and "Harmony" in Europe, which were speculated to be connected to this OS. On 9 August 2019, Huawei officially unveiled Harmony OS at its inaugural developers' conference in Dongguan with the ARK compiler which can be used to port Android APK packages to the OS.
On 9 August 2019, Huawei officially unveiled Harmony OS at its inaugural developers' conference in Dongguan. Huawei described Harmony as a free, microkernel-based distributed operating system for various types of hardware, with faster inter-process communication than QNX or Google's "Fuchsia" microkernel, and real-time resource allocation. The ARK compiler can be used to port Android APK packages to the OS. Huawei stated that developers would be able to "flexibly" deploy Harmony OS software across various device categories; the company focused primarily on IoT devices, including "smart displays", wearable devices, and in-car entertainment systems, and did not explicitly position Harmony OS as a mobile OS.
In September 2019 Huawei filed a defamation lawsuit against a French researcher and a television show which had hosted her. The researcher, with the Foundation for Strategic Research, had noted that Ren Zhengfei was a former PLA member and that Huawei functions as an arm of the Chinese government. This was the first time Huawei had sued a researcher for defamation for stating common opinions and recognized facts.
In September 2019, Huawei began offering the Chinese Linux distribution Deepin as an optional pre-loaded operating system on selected Matebook models in China, as an alternative to Windows.
The HUAWEI MatePad Pro, launched in November 2019. Huawei is number one in the Chinese tablet market and number two globally as of 4Q 2019.
In 2020, Huawei partners with Dutch navigation device company TomTom for Google map alternative.
Huawei Mobile Services (HMS) is Huawei's app store created as a competitor to Google's Android Play Store. As of December, 2019 it was in version 4.0 and as of January 16, 2020 the company reports it has signed up 55,000 apps using its HMS Core software.
Huawei has been accused of various instances of intellectual property theft against parties such as Nortel, Cisco Systems, and T-Mobile US (where a Huawei employee had photographed a robotic arm used to stress-test smartphones and taken a fingertip from the robot). The management of the company claims the US government persecutes it because Huawei's expansion can affect American business interests. In February 2020, the United States Department of Justice charged Huawei with racketeering and conspiring to steal trade secrets from six U.S. firms.
In February 2020, US government officials claimed that Huawei has had the ability to covertly exploit backdoors intended for law enforcement officials in carrier equipment like antennas and routers since 2009.
The case for extradition of Meng to the US to face charges is ongoing as of May, 2020 with the B.C. Supreme Court judge on May 27, 2020 ruling that extradition proceedings against the Huawei executive should proceed, denying the claim of double criminality brought by Meng's defense team.
In July 2020, Huawei surpassed Samsung and Apple to become the leading smartphone mobile brand in the world for the first time primarily due to the slump of Samsung's global performance whereas the overseas sales of Samsung dropped in the second quarter of 2020 owing to the impact of the COVID-19 pandemic.