While Chinese smartphone maker Huawei may have one of the more difficult brand names to pronounce, it certainly doesn’t seem to be slowing the company’s growth down. Huawei’s latest earnings show a massive 20% increase in revenue which was attributed mainly to a rise in sales of mid-to-high end smartphones in its consumer business unit.
“Overall, globally we’re now focused on the middle-to-high-end segment.” Huawei’s vice president for international media affairs, Roland Sladek, told reporters last week. “We don’t do feature phones, we don’t focus on the low-end market as our global strategy.”
The consumer unit as a whole increased saw a 32% increase in sales which, along with a 27% rise in the cloud and data projects division, was responsible for the bulk of Huawei’s good fortunes.
“Huawei’s consumer business has done a good job.” chief financial officer Cathy Meng said. “Our global brand awareness increased remarkably.”
Chinese brands on the whole are taking a larger share of the worlds smartphone sales with two of the current top 5 places held by Chinese companies. Samsung and Apple are still in position one and two but Xiaomi and Lenovo have taken up the next two positions with a back and fourth battle that should see Lenovo win out once it’s recently purchased subsidiary, Motorola‘s market share is factored into the calculation.
Interestingly, Huawei’s main business is still the supply of network infrastructure to the mobile network operators of the world where it ranks second only to Sweden’s Ericsson. Regulatory troubles in the US have stemmed Huawei’s potential rise to the top as regulators have banned Huawei equipment from being used in any US government contract over fears that it may be used by the Chinese government to spy on the US. A rather comical sentiment from the country that spies on pretty much the entire world, including Huawei itself.[Source – Bloomberg]