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Huawei increased dominance in 2016 but profits under pressure

As Ericsson follows Nokia into a restructuring of its management team and product portfolio, Huawei’s 2016 results highlight one key reason why they need to change so urgently. The Chinese firm’s sales rose by almost one-third last year, a year when its two key rivals struggled with slowing markets and saw their revenues fall by about 10% apiece. Indeed, Huawei made more revenue in 2016 than Nokia, Ericsson and ZTE put together (though it does have a broader product set including enterprise). But even Huawei faces the challenge of shrinking margins in the telco infrastructure space, reporting about the same net income as in 2015, after three years of impressive profits growth. In 2016, overall revenues were up 32% on…

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