Huawei profits predicted to rise by a third

Huawei profits predicted to rise by a third

Huawei said its yearly net profits are expected to grow by 33% to CNY 15.4bn (£1.56bn) during its past 12 months, as the Chinese manufacturer pledged to become more 'open and transparent' with its shareholders.

The manufacturer, along with ZTE, had been under scrutiny over alleged ties to the Chinese government. Both manufacturers deny the allegations.

Sales at the manufacturer are expected to reach CNY 220.2bn (£22.29bn), an ‌increase of 8%. A fully audited version of the results will be published in April. Huawei said it made "huge breakthroughs in selling smartphones in Japan, North America, Europe, and other high-end markets". The manufacturer has signed a number of exclusive deals with retailers during the past 12 months for various handsets. However, chief financial officer Cathy Meng added: 'Smartphone penetration is still way too low and there is a lot of room for growth.'

Europe, the Middle East and Africa were Huawei's biggest markets, with sales of CNY 77.4bn (£7.83bn) outperforming Chinese sales of CNY 73.6bn (£7.45bn).

Huawei also provides infrastructure to a range of different telecoms companies worldwide. The manufacturer said the convergence of mobile internet and smartphones 'is likely to generates hundreds of times more data in the coming years, which presents tremendous challenges as well as unprecedented opportunities for development of the ICT industry'. Meng added that she expected the manufacturer to report sales growth of 10-12% in 2013.

Author: Graeme Neill

Written by Mobile Today
Mobile Today


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