Huawei sees revenue growth slow in H1 - Mobile World Live

Huawei sees revenue growth slow in H1

27 JUL 2017

Huawei “expects to maintain its current momentum” after achieving “solid growth” across its three main units in the first half of 2017, although revenue increased at its slowest rate for four years.

Huawei, which does not release half year profit figures, said revenue in total rose 15 per cent to CNY283.1 billion ($42 billion), from CNY245.5 billion in H1 2016. The increase is well below the 40 per cent annual rise Huawei recorded during H1 2016. Operating margin in H1 2017 of 11 per cent was marginally lower than the 12 per cent margin recorded in the 2016 period.

The company did not break out figures for its carrier business, its largest unit, but said it continues to focus “on enabling customer success and to help global carriers drive digital transformation in all industries”.

The Chinese company also did not provide H1 figures for its enterprise business, but added it had “stepped up efforts and investment” during the first half of the year in the areas of industry alliance, business alliance, open source communities and developer platforms” to build an open digital ecosystem”.

Huawei consumer business
Richard Yu, CEO of Huawei’s consumer business (smartphones and other devices), said in a separate statement Huawei’s consumer business “continued to deliver extraordinary growth, beating the industry average and penetrating high-end markets across the globe”.

Huawei, which has put the onus on its smartphone line-up to snare market share from leaders Apple and Samsung, said shipments in H1 2017 increased 20.6 per cent year on year, reaching 73 million.

Flagship products including the Huawei Mate 9, Huawei P10, Honor 9 and the Huawei Matebook E/X/D had been “well received by consumers worldwide”, it said.

Revenue for the unit increased by 36.2 per cent year on year to CNY105.4 billion, with the growth “a testament to the strength of the Huawei brand and the momentum we’ve built through delivering premium, market redefining devices”, added Yu.

The company cited figures from analyst firm IDC, which said its smartphone market share globally rose to 9.8 per cent in Q1 2017, driven by sales in mid-range and high-end phones in key geographies.

In its home market China, Huawei attained a 22.1 per cent share of the market, while it also saw “rapid growth in smartphone shipments across Europe, representing 18 per cent year over year growth,” according to IDC’s recent figures.

It also experienced “major breakthroughs” in Asia-Pacific markets Thailand, Malaysia, Japan and South Korea.

Huawei also revealed it will also grow its retail network to 56,000 stores globally by the end of 2017, an increase from 35,000 in May 2016, reflecting its growing brand presence.

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Kavit Majithia

Kavit joined Mobile World Live in May 2015 as Content Editor. He started his journalism career at the Press Association before joining Euromoney’s graduate scheme in April 2010. Read More >>

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