Huawei announces 42% consumer revenue jump

Huawei announces 42% consumer revenue jump

Huawei’s consumer arm has announced its end of year figures including a predicted £20.85 billion in sales revenue for 2016, a 42% increase year on year. The report explains that this was helped by a 29% increase in shipments to 139 millions, bucking the overall industry shipment numbers which show just 0.6% growth year on year.

 

Huawei’s market success announcement comes at the same time as their major domestic rival ZTE is revealed to be preparing major job cuts. Reuters reports that the brand is preparing to cull 5% of their global workforce including a 20% reduction in their Chinese handset department. One unnamed executive claimed they received a redundancy quota alongside a list of ‘unstable factor’ employees who had allegedly applied for jobs at Huawei.

 

ZTE holds a 10% market share in the US but has been rocked by the US Commerce Department’s export ban on ZTE for allegedly breaking Iran sanctions.

 

In November Huawei celebrated passing the 20% market share mark for the first time in their domestic Chinese market, but according the firm, their share excelled elsewhere as well, reaching 11.3% globally according to GfK in October. Their release boasted of a 15% plus share of the market in over 51 countries, at least 9 of which are in Europe.

 

Though not releasing the numbers, Huawei’s report also highlights ‘significant progress’ in the UK, French and German markets which they describe as ‘key high-end markets.’

 

Richard Yu, Huawei CBG CEO, said, ‘Despite tough market conditions Huawei CBG is still growing at an industry-leading pace. This can be attributed to our consumer-centric approach that focuses on creating meaningful innovation, as well as our ongoing commitment to building a premium brand and reinforcing our global channels and service capabilities. In 2017, we will strengthen our supply chain, channels, R&D, services and several other areas required to help us streamline our operations, improve the efficiency of our decision-making and implementation, drive our internationalization strategy and proactively develop future capacity.’

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