Huawei sees strong H1 sales growth, smartphones lead the charge

July 25, 2014

Despite concerns that the smartphone market is reaching saturation point, at least at the premium end of the market, some manufacturers are still managing to post impressive growth figures this year. Huawei is the latest consumer electronics company expected to announce strong sales growth last quarter, led by the company’s smartphone division. According to a memo seen by The Wall Street Journal, sales of Huawei smartphones, and other consumer products, rose by 30 percent in the first half of this year.

In a business memo sent out to colleagues titled “Don’t Fall Behind”, Richard Yu, the head of Huawei’s consumer business group which mainly deal with smartphone sales, said that his group had already reached half of its 2014 profit target in the six months which ended on June 30th. Contrary to some analyst concerns about the top end of the market, Huawei’s strategy of focusing more on mid- to high-end smartphones, such as the Ascend Mate 2 and Ascend P7, rather than selling the cheapest phones on the market, seems to be paying off.

Although Huawei has not disclosed any sales figures yet, Huawei has said that its revenue rose by 19 percent in the first half of this year. Last year Huawei’s consumer electronics business generated 70 percent of its revenue from telecommunications sales, so we can assume that the growth in the smartphone division is having a very positive impact on the company’s profit margins.

2013 Marketshare by Quarter

Market share statistics for last year.

Despite Huawei’s strong growth so far this year, the company is still a way behind the market leaders, Samsung and Apple, when it comes to its global sales share. The latest research from IDC puts Huawei on just 5 percent of the global market, compared with 30 percent for Samsung and 16 percent for Apple.

Even so, Huawei’s business strategy seems better suited to the current market climate than its larger rival Samsung, which is expecting to post a poor Q2 earnings report. It seems likely that Huawei is set to retain its position as the third largest smartphone manufacturer in the world, with most of its growth coming from emerging markets.

According to the memo from Mr Yu, Huawei is seeing its strongest levels of sales growth in the northern portion of Latin America, particularly in Mexico, Colombia, Venezuela and Ecuador, followed by the Middle East, Africa, and Southeast Asia.

If you’re interested in a further breakdown of how Huawei’s mobile business is faring, the company is scheduled to announce its financial results next week.

Comments

  • http://amazing-youtube-video.blogspot.com/ Omran Terro

    I don’t see Sony :)

  • The Breaker

    Are Sony smartphones seriously so unpopular :( And is this really a graph for GLOBAL sales share…. I think that HTC/Sony would have a bigger share… :(

    • xoj_21

      no, sony and htc plugged out of low end market a while ago.huawei stills sell those. less profit per devices but they sell so many they still make enough

      • The Breaker

        Yeah, but Sony and HTC still have pretty good mid-high range phones… Isn’t that good enough…?

        • eliHd

          Sony sandwich their phones with 2 pieces of glass. You drop it and say good bye to at least $100 from your pocket! This is the reason why I don’t buy sony phones.

  • Jonathan TAM

    Am I the only one that thinks the Ascend P7 looks like the xperia Z1/2

  • el_sur

    Can the Chinese come up with products without blatantly ripping off the competition? Sheesh. Z1, anyone?

  • eliHd

    If Huawei phones have better camera I will start buying their phones. No need 2k screen and 4gb ram. Am happy with 1080p screen + 2gb ram and a great camera to take pictures of my ugly ass face!

  • RH

    I bought a Huawei Ascend Mate2 about 2 weeks ago, to replace my Note1 GT-N7000. 6.1″ screen, and a battery that lasts 2-3 days, with room to spare. So what it doesn’t have 4.4, 1080p or that other nonsense that I’d never see anyway. IT WORKS! Fast, screen is bright & clear, it does everything I need it to do. Not having to plug it in 2-3 times a day, just to get through the day is REALLY nice.