Huawei grows revenues 8%, profits 33% in 2012
Huawei has announced some pretty respectable numbers for the year just passed, with the company taking $35.4 billion (CNY 220.2 billion) in revenue and turning that into a $2.48 billion (CNY 15.4 billion) profit
CFO Cathy Meng, daughter of Huawei’s founder, said:
[quote]that despite the money coming in, “smartphone penetration is still way too low and there is a lot of room for growth.” Meng also brought up the ongoing trust issues with the US, which she doesn’t expect to hamper growth. Huawei is certainly maturing its international business regardless — 66 percent of overall revenue came from other regions[/quote]
Huawei’s becoming increasingly visible at international trade shows like CES, and it will undoubtedly have more to share at the upcoming MWC, where we can only hope to hear more about that mouth-watering eight-core chip.
Huawei CFO Announces 2012 Financial Results Achieves Effective Growth, Says ICT Sector Opportunity Is Growing [Beijing, China, January 21, 2013]: Huawei, a leading global information and communications technology (ICT) solutions provider, today released its 2012 financial performance results.
Cathy Meng, Huawei Chief Financial Officer said:
[quote]the company achieved effective growth in 2012 by focusing on customers, streamlining management and improving efficiency.we are Meng is positive about the industry’s future growth prospects[/quote]
Continuous innovation focusing on customer needs is also an important driving force for Huawei’s growth. The company has cumulatively invested CNY 120 billion in R&D over the past 10 years, including a CNY 29.9 billion investment in 2012, accounting for more than 13% of the year’s revenue. Huawei has strategically focused on developing sophisticated communications network infrastructure, or “pipe.” Huawei has invested in and developed its Carrier Network, Enterprise and Consumer businesses in order to provide faster, broader and smarter information services to its customers, while addressing the challenges and opportunities in the era of big data.
70% of total revenue is generated by the leading telecommunications operators, including 45 of the world’s top 50.Huawei’s three business groups continued their steady growth and achieved performance in line with expectations.
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Huawei’s Carrier Network business group, a traditionally strong business group, continued to be a leader in the industry, with sales revenues of CNY 160.3 billion. Huawei’s Consumer business group recorded robust sales revenue of CNY 48.4 billion, with sales continuing to grow in developed markets including Europe and Japan.
uawei’s Enterprise business group further developed its portfolio and won contracts, generating sales revenue of CNY 11.5 billion. 66% of Huawei’s overall revenue came from outside China. Among the overseas revenue, the Asia-Pacific region saw revenue of CNY 37.4 billion, while Europe, Middle East and Africa recorded CNY 77.4 billion and the Americas contributed CNY 31.8 billion. The domestic market China recorded CNY 73.6 billion.
The convergence of mobile internet, smartphones, the digital and physical world is likely to generate hundreds of times more data in the coming years, which presents tremendous challenges as well as unprecedented opportunities for development of the ICT industry. Huawei believes that pipes with large bandwidth that can transmit and process massive data flow are the key to addressing these challenges and also Huawei’s key growth driver in the future.