Huawei reports 30% rise in revenue for H1 2015

• ‘Stable and healthy growth’ in all business segments
• Confident of growth for the full year

CHINESE telecommunications equipment maker Huawei announced revenue for the first half of 2015 of 175.9 billion yuan (US$28 billion), a 30% increase over the same period last year.
 
This is the highest jump since the privately held firm began providing half-yearly numbers in 2011.
 
However, operating margins were flat at 18% in the first half. The company issued no other numbers.
 
“Huawei achieved stable and healthy growth in all of its three business segments,” chief financial officer Meng Wanzhou said in a statement, referring to the company’s telecommunications, consumer electronics and enterprise units.
 
The Shenzhen-based company jostles for the top position in the global telecoms equipment market with Sweden’s Ericsson.
 
In the mobile space, research firm Gartner has placed Huawei as the fourth largest maker of smartphones behind Apple, Samsung and Lenovo, with 5.4% of the global market share.
 
But Huawei was keen to highlight the growth of its enterprise arm. In the same statement, Meng said, “Thanks to the extensive application of our cloud computing, storage, agile network and other flagship products and solutions in the smart city, finance, education and ISP (Internet service provider) markets in and outside of China, our growth in the enterprise business began to pick up in the first half of this year.”
 
As for the full year, she said, “We are confident that we will maintain effective growth and steady and healthy development in all business segments in 2015.”
 
Last year, the company’s revenue grew by 21% with an operating margin of 11.9%.
 
Meanwhile, a leaked memo by Huawei’s consumer business head Richard Yu, seen by Reuters and the Financial Times, noted that Huawei’s smartphone shipments exceeded 10 million a month since May, and is on target to ship 100 million units globally by the end of 2015.
 
Late last month, at the launch of its Honor 7 in Beijing, company executive George Zhao said Huawei’s Honor line of smartphones has already shifted 20 million units in the first half, and he was expecting shipments to reach its target of 40 million by the end of the year.
 
The Honor brand, which is sold primarily online and competes directly with China’s Xiaomi, has seen 85% of its sales come from the domestic China market and the rest from overseas buyers.
 
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