Huawei Profits Jump, Firm Becomes a Global Force in the Mobile Market
Chinese tech giant Huawei Technologies reported that profits jumped a third last year, boosted by strong performances in all its businesses
Huawei is making more money than ever before, with a 33 percent increase in year-on-year profit from 2013, with smartphone sales driving these figures.
The tech giant’s full-year net profit for 2014 rose to 27.9 billion yuan ($4.5 billion), up from 21 billion yuan in the previous year, citing better management of foreign exchange risks as well as borrowing costs as the factors contributing to the level of its success.
Smartphone sales were up 33 percent from the previous year, accounting for 26 percent of their overall business; with 67 percent coming from the supply of mobile network equipment. In its domestic market, revenue rose 32 percent to 108.9 billion yuan in 2014, reportedly thanks to a drive in 4G technology and more competitive budget devices such as the ‘Honor’ line.
The company said it was well positioned to capture business opportunities with heavy investment in innovative areas such as cloud computing and 5G mobile technology in the future.
The important point to garner from this rise in profit is Huawei’s rise to global contention in the technology market.
When commenting on the company’s market presence, Android Headlines writer Tom Dawson said: “Huawei is no longer ‘that Chinese company’...Many, of you will be familiar with the Huawei name, especially those reading from parts of Asia, Latin America and parts of Europe. However, there will be more of you that just think of Huawei as the Chinese brand that releases cheap and undesirable smartphones. That’s not the case at all, and in fact Huawei make some pretty great devices, like the Ascend P7 and who can forget the excellent looking Huawei Watch from Mobile World Congress just last month?”
While Huawei still face challenges in a few countries, the company has the potential to emerge at the forefront of the supply of 5G equipment. For the time being, the firm is causing a stir in the smartphone and equipment sales markets around the globe.