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Huawei announces £3 billion net profit in 2014

Huawei has announced a huge growth in its business services over 2014, resulting in £31 billion in revenue over the year and £3 billion in net profit.

The Chinese smartphone and networking manufacturer claimed financial performance was up heavily in all business areas, including a 32.6 per cent revenue increase to £8.1 billion in its consumer business group, thanks to low-cost smartphones in emerging markets.

Huawei noticed similar gains in its enterprise business group, with a 27.3 per cent increase to £2 billion. Huawei claimed strong growth in cloud technologies and agile networks were key parts of the growth in 2014.

The main part of Huawei - the carrier business group - managed a 16.4 per cent increase in revenue to £21 billion. The expansion of LTE across the globe, alongside more countries accepting Huawei’s services, has allowed them to continue being a leader in this market.

”Our strong revenue growth in 2014 can be attributed to a continuous focus on our pipe strategy, while profit increase stems from streamlined management and improvements in overall efficiency,” said Ken Hu, Deputy Chairman of the Board and Rotating CEO. “With heavy investment in innovations in areas such as cloud computing, big data, 5G, SDN and NFV, we believe we are well positioned to capture the tremendous business opportunities in this digital transformation era.”

Huawei invested 29.4 per cent more into research and development throughout 2014. The overall cost was £4.46 billion, although Huawei failed to document exactly what it was researching.

The massive growth of the Chinese mobile scene has helped Huawei, even if the limelight is on Xiaomi. More people using mobile devices naturally helps Huawei in the business end as well, where it helps with LTE chips, networks and pipelines for governments and carriers.

David has been a technology journalist for over six years, covering a wide range of sectors. He currently researches apps, app sectors and app markets for Business of Apps, and has written for ITProPortal, RTInsights, ReadWrite, and Digital Trends.