Huawei on bumper results: We owe growth to ginormous ICT market
Worldwide roll-out of 4G didn't hurt, either
Chinese telco Huawei posted bumper sales and profits for its full-year 2015, with revenue up 37 per cent to 395bn Chinese yuan (£42bn) and a net profit increase of 33 per cent to in annual revenue worldwide.
Its traditional kit-building biz contributed the lion's share of sales, up 21 per cent to ¥232.3bn (£25bn). The company said widespread rollout of 4G networks accounted for a large portion of this growth.
Consumer sales rose the most, mainly due to the popularity of the company's smartphones in China. Sales increased by 73 per cent to ¥129.1bn (£14bn).
The biz has also been keen to promote its third arm: the enterprise division. Sales in this area shot up 44 per cent to ¥27.6 billion (£3bn). However, compared to its other much larger division, enterprise still only contributes toward 7 per cent of annual revenue.
Growth also swelled across geographic regions. Sales in Europe, the Middle East and Africa increased by 21 per cent to ¥128bn (£14bn). However, the Middle Kingdom remained the biggest area of growth, up 54 per cent to ¥167.7bn (£18bn).
Guo Ping, Huawei's deputy chairman and rotating CEO, said: "In part, Huawei owes its long-term growth to the sheer size of the ICT market, which is the driving force of digital economies around the world.
"However, our growth is also a direct result of strategic focus and heavy investment in our core businesses."
Huawei has posted consecutive double-digit growth for the last few years. In 2014, the company increased revenue by 20 per cent, with profits also up 29 per cent. However, today's results are the best since 2008.
The business also ploughed a significant pile of cash into R&D - some ¥59.6bn (£6.5bn).
The company is also working with Surrey University's 5G Innovation Centre. ®