Huawei revenue surges 30% for 1H15

21 Jul 2015

Huawei has reported a 30% surge in revenue for the first half, its strongest revenue growth in five years, as the vendor recorded growth across each of its three business segments.

Unaudited results also show that the company achieved an operating margin of 18% for the period, the company said.

Growth in the company's carrier business was driven by continuing heavy investment in 4G network construction in China, according to CFO Meng Wanzhou.

“In addition, the growth in global data traffic drives investment in network capacity expansion, while carriers' digital transformation pushes up investment in the ICT industry," Meng said. "These factors helped us maintain steady growth in the carrier business."

In the consumer product line, Huawei built traction for its mid-range and high-end smartphones, with the Mate7, P8 and Honor-branded phones doing particularly well, according to Meng.

An internal memo seen by Reuters stated that the company is ahead of schedule with its planned smartphone shipments and is expected to exceed its 2015 target of shipping 100 million handsets.

The memo states that Huawei has recorded monthly smartphone shipments of more than 10 million per month since May. The company fell shy of reaching its 2014 sales target of 80 million, shipping around 75 million units for the year.

Growth in Huawei's enterprise business also began to pick up due to demand for its cloud, storage and agile networking products in the smart city, finance, education and ISP markets, Meng said.

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