Huawei trumped its main rival, Ericsson, in the opening half of the year in terms of sales, with revenues around €5 billion higher than the Swedish company.
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Cathy Meng, Huawei CFO |
The Chinese vendor on Monday reported that first-half revenue hit CNY135.8 billion (€16.1 billion/$21.8 billion), an increase of 19 per cent over the CNY113.8 billion in sales Huawei generated in the same period of 2013. Operating margin for the recent period is tipped to hit 18.3 per cent, a brief company statement explained.
In contrast Ericsson, which released its earnings on Friday, generated sales of SKR102.4 billion (€11 billion/$14.9 billion) in the opening six months of 2014, a drop of 4 per cent over 2013.
Huawei CFO, Cathy Meng, explained that first half revenue and profit "are in line with our expectations," with the company scoring well in LTE network contracts, and software and services.
"Driven by increasing investments in LTE networks worldwide, Huawei has further solidified its leadership position in mobile broadband," Meng said.
The CFO also noted the company's "efforts in the enterprise business have begun to pay off," and said Huawei's consumer business achieved sustainable growth in the opening half of 2014, "thanks to the increase of brand awareness and smart devices sales worldwide."
Huawei has grown to become a top three player in the global smartphone market, according to recent figures from research company Canalys. The company noted half of the top 10 vendors in the opening three months of the 2014 were Chinese, with Lenovo, Xiaomi, Yulong, and ZTE the other companies on the list.
China was Huawei's fastest-growing market in terms of sales growth in 2013. However, Europe, Middle East and Africa generated the most revenue for the company last year. Huawei attributed the EMEA performance to higher sales of infrastructure, professional services and smartphones.
For more:
- see Huawei's earnings statement
- see Ericsson's recent financials
- see Huawei's first half 2013 earnings
- see this Canalys report
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