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Huawei reports 37% revenue growth for 2015

Chinese hardware maker sees its 2015 revenue hit 395 billion yuan (US$60.8 billion), fuelled by 73 percent growth in its consumer business and increased global demand for ICT.
Written by Eileen Yu, Senior Contributing Editor

Huawei has reported a 37 percent year-on-year increase in its 2015 revenue to 395 billion yuan (US$60.8 billion) worldwide, with growth fuelled by a robust consumer business and increased demand for ICT.

The Chinese hardware manufacturer's net profit climbed 33 percent year-on-year to reach 36.9 billion yuan (US$5.7 billion), on strong growth across its carrier, enterprise, and consumer business groups, according to its 2015 annual report, which was audited by KPMG.

Huawei's carrier business clocked 232.3 billion yuan (US$35.8 billion) in revenue, up 21 percent over the previous year, with the vendor's global rollout of 4G networks a significant growth driver.

Its enterprise business reported an annual revenue of 27.6 billion yuan (US$4.3 billion), climbing 44 percent from 2014. The business unit saw strong growth in the public safety, finance, transportation, and energy sectors.

Describing its consumer business as "a major highlight" of the company's performance last year, Huawei said this group grew 73 percent year-on-year to clock 129.1 billion yuan (US$19.9 billion) in revenue. It attributed the growth to increased demand for its handsets and footprint as a consumer brand.

Huawei's domestic market China remained its biggest geography, where revenue grew 54.3 percent to account for 42 percent of the company's overall revenue. Revenue from EMEA climbed 27.2 percent, contributing 32 percent of overall revenue, while Asia-Pacific revenue grew 19.1 percent to account for 13 percent. The Americas, which generated 10 percent of total sales, also saw a climb of 26.4 percent in revenue.

Huawei's deputy chairman and rotating CEO, Guo Ping, said: "In part, Huawei owes its long-term growth to the sheer size of the ICT market, which is the driving force of digital economies around the world. However, our growth is also a direct result of strategic focus and heavy investment in our core businesses.

"Over the next three to five years, we will concentrate on enhancing connectivity, enabling the development of vertical industries, and redefining network capabilities," he said. "With an open and collaborative approach, and a commitment to shared success, we will work closely with our customers and partners to maximise industry development opportunities."

Huawei said 15 percent of its revenue last year funded its research and development efforts, totalling 59.6 billion yuan (US$9.2 billion), and pushing its total R&D investment over the past 10 years to more than 240 billion yuan (US$37 billion).

Huawei CFO Sabrina Meng said: "In 2016, we will continue to focus on our pipe strategy, staying customer-centric in all we do, [and] press ahead with management transformation projects to better prepare ourselves for the future, and continue boosting the efficiency of our operations to ensure sustainable growth."

(Source: Huawei)​
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