It has been quite a busy 2013 for Huawei as seen from the latest report that it released. The company had a 34 percent increase in profit growth last year. Revenue for the company reached a record high of 239 billion yuan ($38.47 billion) with a net profit of 21 billion yuan. This is enough to make it the world’s third largest smartphone manufacturer. Now, the company is targeting to double this figure by 2018.
Huawei is not new to the Android market scene as they have been releasing several Android models in the past years. Their dominance in the Chinese market however has been threatened by several competing brands such as Xiaomi, Lenovo, and ZTE among others.
The company was able to achieve record high revenues last year by flooding emerging markets with low-priced smartphones while also releasing high-end smartphones to advanced countries. This system seems to work for the company as seen by the result.
It is not only in its smartphones that the company is relying on as it has several other products that it is offering to the market.
The consumer division of Huawei which includes smartphones grew 18 percent and a similar growth result is expected for 2014. Its enterprise division which builds networks for companies grew 32 percent thanks to the heavy investment in cloud and mobile computing by its customers. Its carrier network business grew only 4 percent however this accounts to 70 percent of its income.
Eric Xu, Huawei’s rotating and current chief executive, said that “In 2014, we are aiming our sales efforts at improving our branding image. At the same time, we are going to build our (smartphone) product portfolio in the mid-range and high level.”
By 2018 the company is targeting revenues of $70 billion which translates to an annual growth rate of 10 percent.
What is probably the greatest challenge of Huawei is increasing its sales in the lucrative American market. The Chinese company has been flagged by several lawmakers as posing a potential security risk to the nation due to its affiliation with the Chinese People’s Liberation Army.
Xu commented on this issue by saying “Nobody has ever said that Huawei has the capacity to spy on the U.S. network and things like that. For a business organization, no one would be so unwise as to do such a thing. The whole focus point of all the ongoing discussion is the concern that the Chinese government may leverage Huawei’s equipment (for spying) I think it will take a lot of effort to address.”