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Huawei reports 15 percent revenue surge for H1 2017

The networking giant generated 283.1 billion yuan in revenue during the first six months of 2017.

Chinese networking giant Huawei has reported half-yearly revenue of 283.1 billion yuan for the six months ended June 30, 2017, up 15 percent from the 245.5 billion yuan reported in the previous corresponding period.

The company claims its operating margin was 11 percent and expects to round out the year in a positive financial position.

Huawei credited its results to "solid growth" across its carrier, enterprise, and consumer businesses.

The world's third-largest smartphone vendor by shipments said that its consumer business group generated 105.4 billion yuan in sales revenue during the half-year period, a 36.2 percent year-on-year increase.

According to Huawei, the sales revenue growth is due to its flagship products Mate 9, P10, Honor 9, and Matebook E/X/D being "well received by consumers worldwide".

Its smartphone shipments surged 20.6 percent year-on-year to 73 million in H1 2017, the company said.

Citing statistics from IDC, the company claims a 9.8 percent market share in the global smartphone market in Q1 2017. Analyst firm Gartner estimated Huawei's global market share to be 9 percent for the same quarter.

The networking giant said it had 22.1 percent market share in the Greater China region, and also saw 18 percent year-on-year growth in shipments across Europe.

Singaporean analyst firm Canalys reported this month that Huawei remained the market leader for smartphones within China in Q2 2017, having shipped more than 23 million smartphones. The company overtook Oppo as the number one smartphone seller in China in Q1 2017.

Huawei was followed by Oppo, which shipped more than 21 million devices, and Vivo, which shipped more than 16 million devices.

However, China saw a 3 percent decline in smartphone shipments to 113 million in Q2 2017, after six consecutive quarters of growth.

Huawei earlier this year said it sees "great opportunities" across 5G, the Internet of Things, virtual reality, augmented reality, and artificial intelligence.

It said its global carrier trials on 5G network technology, as well as its continuing investment in research and development, will put it in a "unique" position to implement new technologies into its consumer devices.

In particular, the fact that Huawei has a foot in both consumer and carrier businesses means that it will be better able to implement 5G features into its future devices than its competitors, the company explained.

"Looking ahead, Huawei expects to spur continued growth as the company pushes its devices further through innovations in artificial intelligence and machine learning that will drive the new 'smart era' forward," Huawei said in an announcement this week.

"The Consumer Business Group is committing to delivering intelligent devices that anticipate users' needs and fit more organically into the way people work and live."

Huawei also said it is working on new technologies including sensors, data management, and advances to its Kirin chipset that are designed to bring this type of functionality to the marketplace across its 15 global research centres and 36 joint innovation centres.

The company did not provide revenue figures for its carrier and enterprise businesses.

In March, Huawei reported a full-year net profit of 37.1 billion yuan, up by just 0.4 percent year-on-year despite a rise in revenue of 32 percent to 521.6 billion yuan.

The company said a rise in net profit did not accompany its rise in revenue due to the increasing success of its consumer business, which shipped 139 million smartphones during the year, a rise of 29 percent for a global smartphone share of 9.5 percent in Q4.