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Huawei reports revenue of CNY395 billion in 2015

China

Huawei reports revenue of CNY395 billion in 2015

The surge in smartphone sales has helped Huawei drive the revenue, indicates its annual revenue report for the year. Chinese telecom company registered CNY395bn ($61bn) in revenue for 2015, showing a 37% rise. Its profit increased by 33% from the previous year.

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Besides the revenue from the infrastructural business (Huawei manufactures 1/3rd of the world’s telecom infrastructure), the sale of Huawei’s smartphones, particularly Ascend Mate 7 propelled its profit. The sales of Ascend Mate 7 surged 44% last year to 108n units.

Parallel to the rise in smartphone sales, Huawei’s consumer device business rose to 73% and reached CNY129bn.

Commenting on the sales drive, Huawei’s deputy chairman and rotating CEO remarked, “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. With an open and collaborative approach, and a commitment to shared success, we will work closely with our customers and partners to maximize industry development opportunities. Together, we will build a Better Connected World.”

Huawei’s focus on ICT infrastructure is also evident in the report. Over the past 20-plus years, Huawei has been steadily investing in R&D. In 2015, Huawei invested 15% of its annual revenue – CNY59.6 billion (US$9.2 billion) – in research and development. Huawei’s total R&D investment over the past decade exceeds CNY240 billion (approximately US$37 billion).

“We wrapped up 2015 in a robust financial position, with stable cash flow from operating activities, increased cash availability, and effective risk control. In 2016, we will continue to focus on our pipe strategy, staying customer-centric in all we do. We will 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,” commented Sabrina Meng, Huawei’s CFO.

Ria Lakshman. V is a lead news writer at The Telecom Times. She studied Journalism at Manipal School of Communication and proceeded to work in newspapers and magazines, with technology as her focus area. Passionate about Telecommunications sector, her move to 'The Telecom Times' was a natural choice. Alongside, she also writes for Telecom Talk, where she covers news and tech commentaries in the sector of telecom. In the free time, Ria loves to go camping, read books, or sketch illustrations. She also runs a local design studio and promotes eco-friendly crafts. Ria can be found sharing her knowledge and insights on Twitter.

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