Huawei profits reach $2.5 billion for 2012

Huawei has posted its full-year numbers for 2012. The Chinese manufacturer is still on the upswing as the carrier raked in profits of nearly $2.5 billion on revenues of $35.5 billion. Those numbers might seem more impressive if Huawei were a mere OEM, but its dealings in other areas — such as network and infrastructure — are likely bringing in a vast majority of that.

Huawei didn’t drill too deeply into its numbers to give us a look at how much mobile accounted for, but its “consumer sales business group” unit, which likely houses a majority of the mobile sales, achieved revenue of about $7.8 billion. The enterprise unit could have housed some of those sales, too, with $1.8 billion. That’s not nearly as significant in the grand scheme of things but it’s something to consider anyway.

With HTC on a sharp decline Huawei is finding itself in quite the advantageous position going forward. Many have picked the company to be the next big name in mobile, and while we’re not expecting it to reach Samsung’s heights there’s no reason to doubt that Huawei could become a major force in the smartphone market.

Its biggest problem thus far has been market penetration and mind share, with its wares most popular in Asian markets but only mildly popular in Europe and deduced to rebrand duty here in the States. Those two problem areas will need to be addressed before Huawei can make it to the next level in mobile, and 2013 should be the first big few steps it makes toward getting there. Read on for full press details.

Huawei Optimistic About Future of ICT, Expects Compound Annual Growth Rate of 10% over Next Five Years

 

Shenzhen, China, 8 April 2013: Huawei, a leading global information and communications technology (ICT) solutions provider, today released its audited 2012 financial results. Huawei achieved steady business growth, recording sales revenues of CNY220.19 billion and net profit of CNY15.38 billion. In the next five years, Huawei forecasts a compound annual growth rate of 10%.

 

“In 2012, Huawei met business performance expectations through improved operational efficiency,” said Guo Ping, Huawei’s Rotating and Acting CEO. “Today, telecom networks are yet to meet the requirements for ubiquitous connections – zero wait time, ultra broadband, and smart applications. In the future, ICT will continue to grow, with new opportunities coming from cloud computing, BYOD (Bring Your Own Device), and big data, and feature phones being replaced by smartphones at a faster rate. Huawei will continue to focus on its pipe strategy, integrate and develop businesses around the information pipe, and create value for customers, while achieving sustainable and effective growth.”

 

Huawei’s business demonstrated robust growth across all three of its business groups (BGs). The Carrier Network BG maintained its leadership position, achieving CNY160.1 billion in sales revenue, an increase of 6.7% year-on-year. The Enterprise BG continued to grow in the Chinese market and actively expanded internationally, achieving CNY11.5 billion in sales revenue, a 25.8% increase from the previous year. The Consumer BG’s global sales revenue reached CNY48.4 billion, an increase of 8.4% year-on-year. Rapid growth in Europe, the Middle East, and Africa (EMEA) contributed record regional sales revenue of CNY77.4 billion, an increase of 6.1% year-on-year. In the Asia Pacific region, sales revenue was CNY37.4 billion, an increase of 7.2% year-on-year; in the Americas, sales revenue was CNY31.8 billion, an increase of 4.3% year-on-year. Huawei generated CNY73.6 billion revenue from China, an increase of 12.2% year-on-year.

 

In 2012, Huawei invested CNY30.09 billion, or 13.7%, of its total sales revenue into research and development (R&D). The company has established 16 R&D centers and 28 joint innovation centers across the world.

 

Moving forward, Huawei’s Carrier Network BG is committed to being the preferred partner of its customers. Through vertical integration and continued investments, Huawei will continue to maintain its leadership position in network equipment. The Carrier Network BG will also strive towards operational excellence by capitalizing on opportunities presented by the increased demand for professional services, carrier data center integration and cloud services. Huawei’s Enterprise BG will adhere to an integration strategy and focus on developing partnerships and helping those partners improve their business capabilities and by providing the industry’s most competitive products in the areas of cloud computing, data center solutions, and storage. Huawei’s Consumer BG is committed to becoming a world-leading smart device brand that delivers a superior customer experience. Huawei will continue to simplify its management processes, improve efficiency, and strive to create greater value for customers through its passionate and energetic 150,000 employees and industry-leading innovation.

Huawei’s full-year results, which have been independently audited by international accounting firm KPMG since 2000, are outlined in the company’s 2012 annual report.  The annual report can be found at http://www.huawei.com/en/annualreport2012

 

(Exchange Rates: US$1.00 = CNY6.2285 as of December 31, 2012)

 

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About Huawei

Huawei is a leading global information and communications technology (ICT) solutions provider. Through our dedication to customer-centric innovation and strong partnerships, we have established end-to-end advantages in telecom networks, devices and cloud computing. We are committed to creating maximum value for telecom operators, enterprises and consumers by providing competitive solutions and services. Our products and solutions have been deployed in over 140 countries, serving more than one third of the world’s population.

For more information, visit Huawei online: www.huawei.com.

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