Huawei forecasts sales jump of 8pc

PUBLISHED : Thursday, 16 January, 2014, 2:36am
UPDATED : Thursday, 16 January, 2014, 2:36am

Huawei Technologies' global sales revenue would reach 238 billion yuan (HK$305 billion) to 240 billion yuan last year, an increase of 8 per cent from 2012, bolstered by growth in the enterprise business and sales of smartphones, the company said yesterday.

Chief financial officer Cathy Meng Wanzhou said in Beijing the mainland technology giant's operating profit for last year was expected to be between 28.6 billion yuan and 29.4 billion yuan.

That compared with an operating profit of 19.96 billion yuan in 2012, representing an increase of 43 per cent and in line with market expectations.

"Our carrier network equipment business hasn't reached a ceiling at all," Meng said. "No matter whether in China or overseas, the outlook for 4G (fourth-generation) deployment remains good."

Meng, the daughter of Huawei founder Ren Zhengfei, projected sales would grow 10 per cent annually for the next five years.

Yan Chengyin, an industry analyst at Bayes Consulting, said growth in revenue was in line with the economic environment.

"While Huawei's traditional business, which is telecoms network building and network equipment, met some frustrations internationally, the growth in handsets sales, software services and business of the 4G networks countered the slowdown in revenue growth of that sector."

Huawei, the world's second-largest telecommunications equipment maker after Sweden's Ericsson, was banned from some multibillion-dollar opportunities in the United States and Australia because of security concerns.

Shenzhen-based Huawei said its enterprise segment rose 32 per cent last year and now accounted for 7 per cent of overall revenue.

Smartphone shipments reached 52 million units last year, missing the company's target of 60 million units.

Even so, Yan said Huawei had huge potential. "The firm is repositioning its products, moving from the traditional kind of mobile phone to smartphone, while in the smartphone market, expanding from low-end to the middle and high-end."

Huawei is the world's No3 smartphone vendor in the quarter to September, trailing South Korea's Samsung Electronics and US giant Apple, market researcher IDC said in October last year.