Huawei sees US$16 billion in revenue this year

25 Apr

Huawei, the top Chinese smartphone vendor by shipments, forecasts its revenue to reach $US16 billion this year as sales rise to 100 million units, Taiwan’s Commercial Times reported.

In a summit held in Shenzhen April 21, rotating CEO Eric Xu said, “Huawei made great progress on its products and raising brand awareness last year, but the company aims more at profitability than sales numbers.”

In 2014, Huawei reported overall revenue of US$46.5 billion as its handset division earned US$12.2 billion, its 32.6% growth rate outstripping the parent company’s 20%.

While Huawei’s smartphone shipments have picked up considerably in the past two years, revenue has grown less than 30%, keeping profit margins relatively low.

Following the launch of Huawei’s debut large-screen high-end handset, the Ascend Mate 7, in September 2014, more than 4 million units of the device were sold over the next six months, The Commercial Times reported. The Ascend Mate 7 is Huawei’s first handset priced above 3000 yuan (US$484) of which more than 1 million units have been sold.

If Huawei can succeed in rebranding itself as a mid to high-end smartphone maker, its profit margins will rise accordingly, Xu told The Commercial Times.

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