Huawei Continues to Rise in the Smartphone Business Despite Slumping in U.S. Market
Despite many obstacles, Huawei saw a rise of 28 percent in its profit in 2017. The Chinese manufacturer faces fierce competition at home too and a deal with AT&T was mired at the 11th hour because the U.S. issued security concerns. On top of that sales in America have declined amid Washington’s plans of imposing higher import tariffs on Chinese tech products.
Huawei Continues to Retain Its Smartphone Dominance With Net Profits of $7.3 Billion
Despite all these setbacks, Huawei is surely a force to be reckoned with. It is the third largest mobile manufacturer in the world and an increase in profits show that increased competition hasn’t dampened Huawei’s spirits or its efforts. In 2017, the company made net profits of $7.3 billion, which is slightly more than the 0.4 percent increase in 2016. The 85 percent decrease in net financing expenses is one of the reasons behind an increase in profit. However, revenue only grew at 15.7 percent, which is the slowest in four years.
After lackluster profit growth in the last five years up to 2016, Huawei was determined to do something about the situation. The low smartphone margins really impacted profit growth. Last year, the company’s consumer business grew at a pace of 31.9 percent, bringing in $37.85 billion and shipped a total of 153 million smartphones. The same segment had witnessed a growth of 43.6 percent a year before that.
Huawei has recently unveiled the highly anticipated P20 lineup at an event in Paris. The lineup also included the P20 Pro, a triple-camera phone that will retail for 899 euros. If the phone is a success, it could put the company in the same standing as Apple and Samsung in the market of high-end handsets.
Increasing market share in Europe will help Huawei compensate for some of the loss made in the U.S. This country is the most lucrative market in the world for smartphone manufacturers and Huawei could have benefited a lot if the deal with AT&T had gone through. Last year, Huawei’s revenue decreased by 11 percent in America and this could decrease further as the fear of increasing tariffs looms large.
News Source: Fudzilla