Jul 26, 2016
China’s
latest hot smartphone maker, the privately-held Huawei, released a
barebones versions of earnings this week. Sales jumped 40% to 246
billion yuan (about $39 billion) in the first half of the year, a
healthy increase given worldwide smartphone sales have flatlined
compared to last year.
Huawei’s
smartphone shipments jumped 25% in the first half of the year to 61
million, compared to the same time last year. Citing IDC data, Huawei
said it smoked the competition; global smartphone shipments increased
just 3% during the same time.
Smartphones
comprise only about a third of Huawei’s total revenues despite being
the fastest growing part of its business; the bulk of revenue still
comes from networking equipment sold to carriers across the world, with
the notable exception of the U.S., where governments still warily eye
the company’s equipment as vulnerable to spying from the Chinese
government.
Huawei
wants to capture a greater portion of revenues from the consumer
business and set a goal of 140 million smartphone shipments earlier this
year. Last year it delivered 108 million smartphones to place first
among Chinese phone makers in market share and third in the world behind
Apple and Samsung.
Its
rise has come with costs. With lots of expensive storefronts and retail
deals, Huawei’s model of selling phones is closer to Samsung than
Xiaomi (which until recently was online-only). The number of outlets
selling Huawei globally increased by 116% to 35,000 stores as of May
this year, the company said.
That
likely explains why Huawei’s operating margins plummeted six percentage
points to 12% the first half of this year compared to the same period
in 2015.
But
Huawei wants to be a global brand and it has money to spend. The
question is whether it can stay a step ahead of Chinese rivals. Huawei
supplanted Xiaomi last year as the hottest Chinese brand. Now it’s at
risk of losing the title. In June, two other brands—Oppo and
Vivo—captured a third of China’s market share thanks to their growing
popularity.
Huawei led market share for the full quarter ending in June. But its lead doesn’t look very safe.
Ref:http://fortune.com/2016/07/26/huawei-phone-revenues-growth/
Analysis of Chinese Smartphone's International Growth | CNBC International
Chinese Smartphones have seen a lot of international growth as China's
smartphone sales growth turned negative in the first quarter. CNBC Asia
takes a look at China's leading smartphones.
Subscribe to CNBC International: http://bit.ly/1eiWsDq
Saturation in the domestic market is fueling Chinese smartphone makers' expansion plans beyond the mainland, but can Xiaomi, CoolPad, Lenovo, Huawei and ZTE take on global leaders like Apple and Samsung? CNBC's Julia Wood reports.
Subscribe to CNBC International: http://bit.ly/1eiWsDq
Saturation in the domestic market is fueling Chinese smartphone makers' expansion plans beyond the mainland, but can Xiaomi, CoolPad, Lenovo, Huawei and ZTE take on global leaders like Apple and Samsung? CNBC's Julia Wood reports.
No comments:
Post a Comment