By staff reporter Ming Shuliang

The North American market may become the next target for Huawei to expand its overseas businesses, said Duncan Clark, Chairman of BDA China, a telecom consulting company.

"Due to the stagnant market condition in North America, telecom operators are caring more about costs,” Duncan Clark told Caijing. “This is a good opportunity for Huawei to enter the market.".

Huawei Technologies Co., Ltd., a Chinese telecom solutions provider, had previously announced that contracted sales in overseas market account for 72 percent of the company's 2007 sales, rising from 65 percent in 2006.

Huawei released earlier that the company's 2007 sales revenue reached USD 12.6 billion, up 47 percent of 2006. Impressively, the company posted a net profit of USD 674 million in 2007, increasing 31 percent on 2006.

Duncan Clark foresees that Huawei's 2008 revenue will reach USD 16 billion.

Overseas market is a prominent part of Huawei's businesses. In 2007, the company sold around 40 million mobile phones worth USD 2.6 billion. Of those, 70 percent of them were sold overseas. Thirty-five of the top 50 global telecom operators are now clients of Huawei.

In 2007, Huawei witnessed over doubled business growth in Japan, India and Vietnam. The company's business growth in the European market also reached 166 percent, establishing partnerships with leading European operators such as BT, Vodafone and Telefonica.

Sales in Europe, the Middle East and Africa account for 45 percent of Huawei's overseas sales, whereas the Asia-Pacific region (including China) accounts for 44 percent. Today, Huawei has less than one percent of sales in North America…

However, Clark believes that with the company's successful performances in Europe, the Middle East and Africa, it is now time for Huawei to expand in the North America market.

Since Huawei's major competitors in North America, Motorola and Nortel, are now suffering sluggish business performance, "the opportunity for Huawei is coming." said Clark.

Clark suggested that Huawei be aware of establishing government relations when enter the North American market. "Huawei needs to take efforts to build its image in overseas market, it maybe helpful if the company consider to allow foreigners to become its director," said Clark.

In 2007, Huawei was blocked by U.S. government to buy a stake in 3Com Corp., a networking equipment maker that supplies the US Defense Department.