HUAWEI FLAGS SLOWEST SALES SINCE 2013
Revenue likely rose 15pc to 600b yuan this year, says rotating CEO
HUAWEI Technologies Co warned of its slowest revenue growth since 2013, despite making headway against Apple Inc in global smartphones.
Revenue at China’s biggest telecommunications gear maker probably rose 15 per cent to 600 billion yuan (RM372.9 billion) this year, said rotating chief executive officer Ken Hu in a letter to staff.
That’s down from 2016 when sales jumped 32 per cent. The company shipped 153 million smartphones.
Huawei has used a vast cashgenerating networking business to bankroll a successful foray into smartphones, using high-end but affordable devices to push aside local rivals such as Oppo and Xiaomi Corp.
Together with local peers, it’s played a critical role in squeezing Apple and Samsung out from the country’s top sellers, though Apple is now counting on the iPhone X to help it win back status-conscious Chinese.
But telecoms spending is stagnant as construction of next-generation networks hasn’t taken off.
“Our carrier business was affected by market investment trends but remains stable,” said Hu in his memo.
“The market’s fluctuations makes us more determined to team with carriers to explore and grasp” future opportunities.
Huawei’s now stepped up an expansion into overseas markets such as Europe and is said to be in talks with US carriers about selling its phones on Apple’s home turf.
Ranked third globally, the Chinese company took 10.4 per cent of global shipments in the third quarter versus its US rival’s 12.4 per cent, according to research firm IDC.
The Chinese brand is steadily moving deeper into higher-end phones, selling devices priced as high as 8,999 yuan.
Next year may prove pivotal with Huawei and Xiaomi said to be in talks with US wireless operators including AT&T Inc and Verizon Communications Inc about selling flagship smartphones to American consumers.
The two Chinese firms now barely register in the US, where relationships with carriers are key to penetrating the market.
Huawei has already tried selling its flagship Mate 9 phone in the US via e-commerce websites like Amazon.com, but working directly with wireless partners would give it a wider presence across through retail stores, carrier websites and television commercials. Bloomberg