Huawei H1 Revenue Up 30% Year-On-Year, Witnesses Stable Growth In Three Business Domains

Smartphone and telecom equipment manufacturer Huawei announced on July 20 that it has generated 175.9 billion yuan (about $28.3 billion) in revenue in the first half of 2015, which is a 30 percent increase compared to the same period last year.

Huawei reported its operating margin was recorded at 18 percent; however, the company did not reveal its net income, reports CNET. In the telecommunications segment, Huawei faces competition from Ericsson and Nokia, while in the smartphone segment, the company competes with its local rival Xiaomi and international rivals Apple and Samsung.

Huawei CFO Meng Wanzhou told Reuters that Huawei achieved stable and healthy growth in three business segments, namely, telecom, consumer device and enterprise business. "We are confident that we will maintain effective growth and steady and healthy development in all business segments in 2015,” said Wanzhou.

Going by the data released by market research firm TrendForce, Huawei has grabbed 7.6 percent in the global smartphone market in Q2 2015. However, in the highly concentrated smartphone market in China, Huawei tops the chart with 18.3 percent market share, followed by Xiaomi that has grabbed 14.3 percent market share, as per the CNET report.

According to Wanzhou, Huawei’s enterprise business is witnessing “accelerated growth” as customers have started recognising the company for cloud computing, storage, agile network, through to other products and solutions in the smart city, finance and education markets. As far as the smartphone segment is concerned, the company’s Honor brand sold 20 million smartphones in the first half of 2015 and is expected to record 40 million shipments by the end of 2015, according to a Fierce Wireless report. Wanzhou also said the company’s carrier business is also performing well with more investments coming into 4G network construction in China.

Huawei considers Europe as one of its most important markets outside China, and it will be a key focus for the company’s future growth. As part of Huawei’s future plan, it aims at generating an overall revenue of $70 billion by 2018, as per the Reuters report.

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