Handset sales already account for a fifth of turnover
Chinese telecoms giant Huawei, one of the world’s top five manufacturers of smartphones, says it’s on track to hit its projected annual revenue growth rate of 10 per cent per year as sales of handsets continue to drive growth. Though the company doesn’t offer a divisional breakdown of its revenues, in a trading update early today [15th January 2014] it revealed that overall sales rose to between $39.4 billion and $39.7 billion year-on-year in 2013, with three quarters of earnings come from outside China.
The vast bulk of Huawei’s income still comes from its telecoms equipment business.
However, sales of phones now account for a fifth of turnover and it is thought that it is this sector that is growing fastest within the company.
Next year it plans to ratchet up shipments of smartphones to 80 million, compared to 52 million in 2013.
Just recently it also released new touch screen phones to compete with Apple and Samsung’s top selling models.
Huawei has further plans to push into 5G – the fifth generation of mobile technology – having already earmarked $600 million for its development over the next three years.
Even so, Huawei continues to be the subject of international security concerns with its efforts to clinch deals in the USA, for instance.
They’ve been blocked by Washington amid fears that its telecoms equipment could be used for spying.
Huawei was founded in 1987 by ex-military officer Ren Zhengfei and describes itself as an “employee-owned company”.
Although its historic links to the Red Army and suspected close ties still with Beijing continue to cast a shadow over foreign trading activity.