New Delhi: Huawei has released its audited financial results for 2016, reporting that its Carrier, Enterprise, and Consumer business groups (BGs) each achieved solid year-on-year growth. Group annual revenue was CNY521.6 billion (US$75.1 billion), an increase of 32% over 2015. Net profits were CNY37.1 billion (US$5.3 billion), an increase of 0.4%. In 2016, Huawei continued to invest in the future, with the company’s annual spending on research and development reaching CNY76.4 billion (US$11 billion).
Thanks to its increasingly innovative products and growing global recognition as a premium device brand, Huawei’s Consumer BG, comprising of its dual brands Huawei and Honor, shipped 139 million smartphones during 2016, and reported CNY179.8 billion (US$25.9 billion) in annual revenue, up 44%.
Eric Xu, Huawei Rotating CEO, remarked, “In 2016, Huawei maintained its strategic focus and achieved solid growth. As humanity continues to explore and make new breakthroughs in the digital world, digitization and increasing intelligence present huge business opportunities for all industries, and are also paving the road for new growth for the ICT industry. We will stay customer-centric and will support digital transformation in all industries, in order to create value for our customers and to grow sustainably.”
Huawei smartphones have become the preferred choice for consumers and strong sales growth in regions like Europe and China is the testament to the growing popularity. According to Sino-Market research, Huawei Consumer Business Group registered 18.85% market share of the China market in February making it the top grosser in the China smartphone market. Also in the Chinese online smartphone segment, Huawei led the market with 31.7% market share including its e-brand Honor with 23.1%, making Honor the single largest online smartphone brand in China.
“Owing to a well-crafted dual brand strategy, Huawei has been steadily growing in the Indian market through its differentiated offerings at consumer friendly price points and is poised to grow exponentially in coming years,” said an official company spokesperson from Huawei India – Consumer Business Group
Innovation is the core proposition that Huawei has long harnessed to move up the growth trajectory, with consistent investments towards R&D with 2016 spending in excess of US$10 billion, accounting for 14.6% of Huawei’s total revenue. Huawei has also entered meaningful partnerships to offer unmatched offerings to customers, some partnerships with leading brands for consumer business include Leica, Porsche Design, Google, and Pantone for innovating in the areas of smartphone hardware, software, design, and color – to share strengths and provide premium gadgets and good experiences to our consumers.
“After around 10 years of development, product innovation and consumer demand are now the norm in the global smartphone industry. Huawei has managed to outperform the market average due to our years of patient investment in products, marketing, branding, and services”, added Mr. Eric Xu.