The Inquirer-Home

Huawei sees 39 per cent drop in profits despite smartphone push

Government bans bite
Mon Apr 23 2012, 15:29

CHINESE TELECOMS EQUIPMENT VENDOR Huawei announced a 39 per cent drop in profits despite a steady increase in revenues.

Huawei reported its financial year 2011 results with revenues at $32.4bn, an increase of 11 per cent from 2010. Although the firm's revenues went in the right direction, profits fell off a cliff, dropping 52 per cent to $1.8bn.

According to the company the growth in revenue was due to its consumer and enterprise business units with the firm claiming it shipped 150 million 'smart devices' during 2011. Huawei also reported a 57.1 per cent increase in revenues from its enterprise business.

Ken Hu, rotating and acting CEO of Huawei said, "In 2011, Huawei increased its investment in the enterprise and consumer business segments, and achieved all-around growth on the back of strong business momentum generated by the company's successful transformation into a complete end-to-end ICT solutions provider. We have made strategic investments, augmented our R&D capabilities and deployed resources globally, and implemented a future-oriented business architecture that puts Huawei in a confident position for sustained growth."

Huawei's bread and butter telecoms equipment business has been suffering not due to competition but because of governments ruling the company cannot bid for contracts due to alleged ties with the Chinese military. The firm has also made a significant push into consumer electronics with a fast growing range of smartphones and tablets. µ


Share this:

blog comments powered by Disqus
Subscribe to INQ newsletters

Sign up for INQbot – a weekly roundup of the best from the INQ

Existing User
Please fill in the field below to receive your profile link.
Sign-up for the INQBot weekly newsletter
Click here
INQ Poll

Microsoft Windows 10 poll

Which feature of Windows 10 are you most excited about?