Huawei Shifts Focus to AI, 5G as Global Telecom Growth Stalls
Huawei is rotating toward AI and 5G to counteract stagnancy in the conventional telecom market. Deputy chairman Eric Xu required tailored growth techniques at MWC Shanghai, urging providers to concentrate on emerging user sectors and business services. AI and linked vehicle facilities are central to Huawei’s new approach, with fiber expansion supporting small company digitalization. Despite global sanctions, Huawei reported strong profits in 2024, signaling durability driven by diversification into AI and chips. Huawei is repositioning itself at the heart of the digital infrastructure race, doubling down on expert system and 5G to make up for a downturn in standard telecom growth.
Huawei bets huge on AI, 5G
Speaking at the Mobile World Congress in Shanghai, deputy chairman Eric Xu Zhijun dealt with a market dealing with saturation after years of exponential expansion. Xu said the telecoms sector has actually matured to a point where most consumer requirements are currently satisfied, leaving little space for growth in legacy services like mobile connectivity and voice. “Business environment and competitive landscape of carriers have actually altered,” Xu specified, highlighting the seriousness of development and customized methods for operators seeking sustainable expansion. At the center of Huawei’s restored push is a commitment to AI-powered solutions and next-generation connectivity, both of which are expected to underpin future demand. Xu highlighted 4 main opportunities for development, using emerging user sections like content developers and gig economy workers, boosting access to high-definition video, powering intelligent linked automobiles, and broadening fiber networks directly into small business spaces.
Telecom stagnation triggers strategic pivot
These aspirations reflect a more comprehensive shift within the worldwide telecom market. With the customer market nearing saturation, especially in industrialized regions, telecom companies are turning to company clients, where requires remain more underserved and complex. According to industry analysis, the B2B segment now represents the most appealing development course. Business digitalization, IoT combination, and industry-specific options are all sustaining this demand. Huawei appears to be aligning itself specifically along those lines. The business’s focus on fiber-to-the-room targets small and medium enterprises that require high-speed web for operations like remote conferencing, security, and cloud computing. Its commitment to making it possible for linked automobiles through 5G facilities shows telecom’s growing overlap with sectors like movement, logistics, and smart manufacturing. Although Xu did not resolve the geopolitical headwinds Huawei continues to face, the company’s pivot comes amidst installing pressure from US-led efforts to exclude its equipment from global networks. Current moves such as a US-backed project to dismantle Huawei towers in Panama underscore the geopolitical hurdles the company should navigate. Still, Huawei’s revenue for 2024 rose to an approximated $118 billion, thanks in part to growth in AI and chip technologies.
Geopolitics towers above Huawei’s expansion
The AI part is particularly tactical. As telecom operators around the world face decreasing returns from standard services, AI is progressively viewed as vital for optimizing expenses and opening new offerings. Analysts anticipate that AI could improve productivity in core telecom functions by as much as 25 percent, helping business handle their high capital investment while exploring new worth streams. Huawei’s method exposes a pragmatic understanding of these trends. Instead of holding on to tradition designs, the business is pushing for distinction through specialized, data-driven options. Xu indicated Huawei’s readiness to work closely with international carriers, customizing methods to the truths of each market. The post Huawei Shifts Focus to AI, 5G as Global Telecom Growth Stalls appeared first on CoinCentral.
