That’s because growing demand for smartphones and particularly strong growth in emerging markets are credited with delivering a 33% rise in revenue of $12 billion for its consumer business unit. Huawei also said that 52% of those sales came from overseas markets. Clearly, China’s largest maker of telecom equipment is continuing to make significant inroads to winning over new consumers.
During a briefing on Thursday, Huawei’s Deputy Chairman and Rotating CEO Ken Hu said they anticipate the recent trend of faster growth to continue for the consumer business, driven largely by the size of the market.
In spite of growing competition from the likes of Xiaomi and Lenovo (Motorola), Huawei ranked fourth in global smartphone shipments in the fourth quarter. Last year, the company introduced new versions of its flagship phones, the Ascend P7 and Honor 6. At this year’s Mobile World Congress in Barcelona, the company unveiled a new smartwatch, which runs Google’s Android Wear operating system.
Huawei’s carrier division still supplies the bulk of the company’s overall business, accounting for just over two-thirds of last year’s revenue of $46.5 billion. Net profit jumped 33% to $4.5 billion. The Shenzhen-based company is the world’s second-largest supplier of networking gear used by telecom carriers after Sweden’s Ericsson.
The enterprise business, the smallest of Huawei’s three main units, saw its revenue grow just over 27% to $3 billion last year.
Huawei continues to invest heavily into research and development. Last year, the company spent just over 40.8 billion yuan, or 14% of its revenue, on R&D. The company is seeking to be a leader in 5G, which promises faster download speeds, wider network coverage and the capacity to connect objects to the Internet.
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