Chinese technology giant Huawei Technologies has recorded a 32% rise in net profit a year earlier. The company attributed this growth to a rapid increase in smartphone sales and continued demand for networking equipment from carriers.
Huawei Profits Rose More Than 30% in 2015
The Shenzen-based company has been growing at a fast rate and is rapidly making headway into the smartphone market, making it the third largest maker of smartphones in the world. Its close competitors include Apple Inc. and Samsun Electronics.
The Chinese tech giant is also a leader in the carrier-network equipment market, competing with the likes of Nokia Corp in Finland and Ericsson in Sweden.
In a statement, Huawei said its 2015 net profit jumped to 36.9 billion yuan from 27.9 billion yuan a year earlier. The company’s revenue grew by 37% in the same year. Huawei’s major markets making up to 60% of its revenue include Africa, Middle East and Europe.
The company also indicated that investment in R&D had increased by 46% in 2015.
Huawei’s acting CEO Guo Ping said, “We still find that there is a lot more room for growth.”
Mr. Guo also indicated that growth in the smartphone market was far much greater than that of wireless equipment. In 2015, consumer electronics and smartphones were Huawei’s fastest growing business, with revenue increasing by 73% or an equivalent of about $20 billion, according to company reports.
Mr. Guo further added that the tech giant was looking to grow its revenue from consumer electronics to $30 billion, mostly by expanding its market beyond China.
In 2015, Huawei’s share of the smartphone market was about 7.4% while Apple and Samsung took 16% and 23% respectively, according to the IDC research firm.
Shipment of Huawei’s smartphones rose by 44% in 2015 to over 105 million pieces, the fastest growth among the big five players in the smartphone market, reported IDC.
While Huawei faces stiff competition, company executives are confident that the consumer business is solidly profitable.