China’s Huawei targets US$20 billion for consumer business as its smartphone sales surge

Huawei Technologies' consumer business group has raised its target revenue this year to US$20 billion, up from the previous forecast of US$16 billion, after its phone sales jumped significantly in the first half.

Shenzhen-based Huawei, mainland China's largest telecommunications equipment manufacturer, saw its sharpened focus on mid-priced to high-end smartphones pay off as total revenue in the period climbed 69 per cent to US$9.09 billion, up from US$5.38 billion a year ago.

The company is now working on a "secret product" to rival Apple's iPhone 6 in terms of design, hardware and innovation, Richard Yu Chengdong, CEO of Huawei Consumer Business Group, said on Wednesday in Shenzhen.

He added that Huawei aims to beat Apple in both sales and performance in China by 2018, but that it has not set a date for when it will launch a smartphone in the US.

Reporting on its third financial quarter, Apple said on Tuesday its China sales had more than doubled year on year to $13.23 billion.

For the Chinese tech giant, total handset sales in the first half surged 87 per cent to US$7.23 billion, up from US$3.87 billion in the same period last year, on the back of a higher average selling price and rising shipments overseas.