Mobile devices and networking equipment revenue drives 17 percent total rise in Huawei profits during 2014
Chinese phone manufacturer Huawei has reported a significant rise in profits throughout 2014 as the world becomes more and more connected through mobile devices and superfast internet networks.
The company said profits are likely to rise by 17 percent last year to hit between 33.9 billion yuan ($5.47bn) to 34.3 billion yuan in 2014, with a roughly 20 percent increase in revenue at 287 billion yuan ($4.6 2billion) to 289bn yuan.
These gains were spurred on by its mobile devices division, which saw a 32 percent rise in revenue, and enterprise arm, which enjoyed a 27 percent increase.
Huawei said the company had benefitted from higher sales of mid-range and high-end handsets,such as the Ascend P7 (pictured left), as the smartphone market grew rapidly worldwide, and had enjoyed particularly strong growth in emerging markets.
Its carrier network group also enjoyed strong growth, with revenues increasing by approximately 15 percent over the previous year, with the company profiting from the steady increase in 3G investment and the jump in 4G investments across the globe.
Huawei, which has poured lots of resources into 4G and 5G research, also announced an increase in R&D spending as it looks to continue its leadership in these areas. The company revealed that it had invested between 39.5-40.5 billion yuan in R&D in 2014, an increase of 28 percent over 2013, and has invested a total of 188 billion yuan in R&D over the last ten years.
“By 2025, the number of connections around the world is expected to exceed 100 billion with connectivity becoming ubiquitous, much like air and water,” said Huawei’s chief financial officer Meng Wanzhou.
“Ubiquitous connectivity and big data will drive a new industrial revolution in intelligent technology, propelling the modernisation of traditional industries, and reshaping today’s industries and business landscape.”
What do you remember about the smartphones of 2014? Try our quiz!