Huawei Witnesses Accelerated Business Performance Owing to Increased Sale of Smartphones
Published By : 23 Jul 2015 | Published By : QYRESEARCH
China based telecom company, Huawei has reported a substantial rise in revenue of almost 30% during the first half of this year. The total revenue thus earned was US$28 billion. This significant increase in revenue can be attributed to brilliant performance of the company in its telecom equipment, enterprise, and smartphone businesses. However, Huawei refused to disclose its earnings and financial figures of each of its individual segments.
Interestingly, the company performed exceedingly well in area of handset exports and shipments over the first six months in the face of stiff competition within the domestic market alongside Xiaomi. Almost fifty million smartphones were shipped by the company between the months of January and June. This was declared by a senior official at the company’s consumer unit. In the initial months of 2014the shipments were around 34 million.
Owing to the favorable performance that the company has been exhibiting so far, analysts and company officials are quite confident that they would be able to hit the target of shipping 100 million handsets this year. Between the period of January and June, the company’s operating margin has become quite sluggish and had come down to 18%, as against 18.3% that it had reported during the same time in the year earlier.
According to a senior official in the finance segment of Huawei, the company’s smartphone business exhibited brilliant progress during the review period. The high end and mid-range smartphones of Huawei namely, P8 and the Mate7, ensured sustainable growth and good quality of products of the consumer business.
In addition, Huawei has begun observing that it is on the fast track as regards its business performance via accelerated demand patterns. The surging demand is mainly seen in the areas of storage, cloud computing, and the other miscellaneous products pertaining to finance, education, and smart city markets.