Huawei posts $11.6b profit on global smartphone shipments
Huawei Consumer Business Group has recorded profit after tax of $11.6billion in its 2016 half year financial results.
Specifically, Sales revenue of the global information and solutions provider increased by 41 per cent year-on-year to CNY¥ 77.4 billion ($11.6billion) in the first half of 2016 while smartphone shipments stood at 60.56 million, a year-on-year increase of 25 per cent.
According to International Data Corporation (IDC), global smartphone shipments in the first half of 2016 increased by just 3.1 per cent, indicating that Huawei’s growth has significantly outperformed the market.
Commenting on the results, Group Chief Executive Officer, Huawei Consumer Business, Richard Yu said: “We saw particularly fast growth in traditionally high-end smartphone markets such as Europe and emerging markets including North Africa, Central Asia & Latin America.”
Yu reiterated that the company has continued to maintain healthy growth within the highly competitive smartphone market, which is testament to Huawei’s long-term commitment to innovation, anticipation of consumer trend and dual strategy of focusing on both domestic and international markets.
In the first half of 2016, Huawei Consumer Business Group further optimized its revenue structure, resulting in growth in its overseas markets 1.6 times faster than that of mainland China. According to GFK, a German research firm, at the end of May 2016, Huawei’s share of the global smartphone market reached 11.4 per cent.
Particularly strong results were recorded in European smartphone markets and breakthrough in high-end market has been made.
GFK noted that Huawei’s smartphone market share has reached over 15 per cent in some European countries. In the traditionally high-end market, such as UK, Germany and France, Huawei has achieved breakthrough in high-end market as well.
In key countries from North Africa and South Pacific, the solution provider gained some breakthroughs on market share. In Egypt, Huawei’s smartphone market share has reached over 20 per cent and in New Zealand, Huawei’s share has reached over 15 per cent.
Strong sales growth was also achieved in emerging markets in Latin America and Central Asia. In some countries, Huawei’s year-on-year smartphone sales has doubled.
In China, Huawei continued to be the industry leader with a market share of 18.6 per cent, according to GFK report in June.
“Having consistently demonstrated significant sales growth, Huawei Consumer Business Group continues to show a deep commitment to innovation in research and development from its R&D centers around the world, alongside repeated breakthroughs with its products, channels and brands, he said.
Looking to the future, Yu said the company would continue to work with industry partners to offer consumers excellent levels of service and develop innovative new products that combine technology, quality and style.