Chinese telecom network vendor today said its revenue rose 8.5 percent to $38.49 billion (CNY239 billion). Its net profit was $3.38 billion (CNY21 billion).
Eric Xu, rotating and acting CEO of Huawei, said the company’s all divisions – devices, enterprise IT, telecom network — has performed well. Macroeconomic and industry environment, as well as the effective execution of its company strategy were main growth drivers.
ZTE, one of the rivals of Huawei, last week said its 2014 revenue dipped 10.6 percent to $12.11 billion (RMB 75.2 billion). ZTE could not report an increase in its revenue despite its 4G LTE business income growing 200 percent to $800 million.
ZTE did not share revenue details of its main divisions.
Huawei carrier network
Huawei carrier network business sales rose 4 percent to $26.81 billion (CNY166.5 billion).
Huawei enterprise revenue increased 32.4 percent to $2.45 billion (CNY15.2 billion).
Huawei consumer businesses grew 17.8 percent to $9.18 billion (CNY57.0 billion).
Interestingly, both ZTE and Huawei bring majority of their revenues from abroad and not from China. This is despite challenging market conditions due to their alleged involvement in security related issues.
Huawei earned 65 percent of its revenue from markets outside of China in 2013, and in the Chinese market, Huawei revenue rose 14.2 percent to CNY84 billion. Huawei does not share revenue growth in its international markets.
On the other hand, ZTE reported operating revenue of RMB 39.60 billion from international operations, accounting for 52.6 percent of overall operating revenue.
Ericsson ahead of Huawei in network business
Ericsson with $35.13 billion annual revenue is ahead of Huawei ($26.81 billion) in terms of telecom network business. While Huawei carrier network business sales rose 4 percent, Ericsson posted flat growth.
On 30 January, Ericsson said it posted flat revenue growth in 2013 to $35.13 billion (SEK 227.4 billion). Its net income increased to SEK 12.2 million from SEK 5.9 million. In 2013, Ericsson said network business generated sales of SEK 117.7 billion (0 percent), global services SEK 97 billion (0 growth) and support services SEK 12.2 billion (-9 percent).
In 2013, Huawei invested $5.06 billion in R&D which is about 12.8 percent of its sales revenue.
Future focus of Huawei
In 2014, Huawei sees the growing penetration of ultra-broadband and mobile broadband, particularly LTE, as an important strategic opportunity.
Smart devices will be another key area for the company.
ICT is turning into a production system and a core competence for enterprises, driven by the transformation of existing IT systems and the reconstruction of traditional industries toward digital.
ZTE earlier said it will focus on areas such as 4G technologies, broadband infrastructure, smartphones, wearable devices, Internet of Things, Cloud computing, Smart City, information security, etc.