Multinational Networking and Telecommunications Equipment and Services Company Huawei has announced its half-year revenue (January to June, 2017) that reached $42.03 billion. This marks a 15% gain with an operating margin of 11 per cent (a drop from 12 per cent a year ago) for the period under review.
It should be noted that Huawei makes money from three groups; a consumer segment that mostly deals with smartphones, telecom/networking as well as enterprise. The three groups achieved solid growth for the first 6 months of 2017. For instance, carrier and enterprise business contributed about $26.4 billion.
Huawei, which is world’s third-largest smartphone merchant by shipment reported 105.4 billion yuan in sales from its consumer segment that was complimented by high-end smartphones such as the Mate 9 from 2016, the more recent Honor 9 and its 2017 flagship, P10. In similar fashion, its laptop business is being ‘received well’ by customers across the globe.
The organization has also reported a climb in smartphone shipment to 73 million units in the first six months of the year, which is a 20.6 per cent surge. By extension, the shipment has solidified Huawei’s market share in the global smartphone scene with a 9% cut. On its home turf, Huawei holds 22.1% market share, coming at the top after ousting Oppo (Oppo, Xiaomi and Vivo occupy top slots as well). Shipment saw 18% Y-o-Y jump in continental Europe.
Worth noting is that Huawei is focusing on mid- and high-end segments to compete with the likes of Apple and Samsung.
“We want to focus on the high-end and mid-range market. We give up the ultra low-end,” says Richard Yu, CEO of Huawei Consumer Business Group.
Huawei is one of the market leader in networking services, a feat it has achieved though research and development. At the moment, Huawei is testing 5G network technology, and believes that mass deployment of the technology will put it in a favourable position in the distribution of consumer products.
“Looking ahead, Huawei expects to spur continued growth as the company pushes its devices further through innovations in artificial intelligence and machine learning that will drive the new ‘smart era’ forward,” Huawei said.
The company is also intensifying its business with new technologies such as data management, silicon business (its phones are mostly powered by home-made Kirin chip) and sensor technology.