Huawei's report: Half year income 135.8 billion

4G Network Construction Peak is still continuing, communications equipment manufacturers in the past two years after the winter has a relatively warm "spring", from the first half of the report card to see Huawei is still in the "Tuyere."

Yesterday, Huawei announced the first half of 2014 business performance. Data show that in the first half of this year, Huawei achieved sales revenue of 135.8 billion yuan, an increase of 19%, operating profit rate of 18.3%. "In the first half of 2014 the company's revenue and profitability basically achieved expectations." Huawei's chief financial officer, Meng Jianzhou, said Huawei was confident of achieving sustained and effective growth in 2014 with sound and financial health.

In the Troika, in addition to the operator business, the other two major BG (Business Group) also began to jump. "First Financial daily" reporter learned from reliable sources, as of June 12, Huawei P7 currently more than 1 million worldwide shipments, covering more than 40 countries and regions, and the previous release of P6 is now in more than 100 countries, shipments have more than 4 million.

Take-off of operators outside the business

Carrier business has been Huawei's main revenue and profit source, according to reporters understand that the first half of this year operators are still the main profit contributors. As a traditional business, Huawei has served as a focus for operator transformation, which is expected to grow 8% this year, according to Huawei's internal plans.

But according to data released by Huawei's financial staff earlier, the company wants to reduce the revenue of its operator network business from 73% in 2012 to 60% in the three-year period, compared with an increase in revenue from 5% to 15% per cent, and an increase in consumer end-business revenues from 22% to 25% per cent.

It can be seen that, as Huawei company to achieve the future growth of the two major driving forces, corporate business groups assume an increasingly important role.

Huawei executive Director, strategy and marketing President Xu in an interview with this newspaper in May, said Huawei Business Group will complete the 3.5 billion U.S. dollar revenue target this year, but did not disclose the relevant profits.

Although the income scale, market share is still in the initial stage, but according to the reporter understand, in the first half, Huawei Business has become the fastest growing business group. Huawei has been so appraised of the business situation, the market potential is huge, but there has been no good solution, developed to now, Huawei has in some vertical market differentiated competitiveness, including agile networks, data centers and Elte.

Currently, Huawei's "Agile Network" has been used by more than 200 enterprises in government, finance, transportation, energy, education and other industries. "Huawei's business grew at a global rate of 32.4% per cent last year, with a growth target of around 40% per cent this year and even faster growth." Xu told reporters that the goal of completing the 3.5 billion dollar revenue this year would be achievable, with the hope of earning $10 billion trillion in business in 2017.

And the profit of another terminal business is also very noticeable because of the direct face to consumers.

In the terminal business leader Yu 3 years later, Huawei Consumer Business 2013-year revenue for the first time to break through 9 billion U.S. dollars, smartphone annual shipments of 52 million, ranked third in the world, profitability has reached the best period of history. The expected growth target for the business this year is 15%~20%, which has seen growth expectations in the first half.

Huawei China's regional Ministry of Consumer Business President Zhu Ping recently to the media, the first half of the Chinese consumer business revenue in China's region more than 12.5 billion, sales of more than 20 million intelligent terminals, the first half of the year's growth of 15%.

Specifically, according to the reporter's internal data, Huawei consumer business in the first quarter of this year a total of 27.5 million equipment shipments, including 7.8 million MBB, 5 million home equipment, and 14.6 million mobile phones, of which 13.7 million (about 94%) for smartphones. Huawei insiders told reporters that in this year's terminal strategy is still the most important profit, so the company is interested in controlling the pace, strict control of inventory.

Yu earlier in France interviewed said that this year, the overall sales target of Huawei's terminal is 80 million units, but if the supply chain is mature, can actually do 120 million ~1.5 billion Taiwan.

5G Future Layout focus

It is noteworthy that in the consumer business, Huawei Self-developed Kirin chip has been used in Huawei's mobile phones, such as glory and other products. Some analysts say the formation of independent technology will affect the profit of mobile phone products to some extent.

It is understood that the current establishment of the eight-year-old mobile phone chip shipments of billions, of which the smartphone shipped tens of millions, the rest for the data card shipments. According to the 2013 Global IC design company rankings, Heiss ranked 12th in the world with 1.355 billion U.S. dollars in revenue, while another mainland company was ranked 14th in 1.07 billion U.S. dollars.

Huawei insiders told reporters that Heiss mobile phone division in 2013 to achieve profitability.

and technology investment in Huawei is still seen as the focus of the year. "We've already started 5G research and expect Huawei to invest at least 600 million dollars in 5G research by 2018." Huawei executive Zhijun told reporters earlier.

In the industry, the boundaries of technology are being constantly broken, different from the 2G, 3G and 4G era of life-and-death standards, the 5G era of international standards, is likely to be the global industrial chain core participants in the results of cooperation. According to the reporter understand, Huawei has recently been selected EU 5G PPP board. Joining the board means Huawei will become the core leader of European standards, not only with a core patent for 5G technology involved in research, but also in terms of research direction and focus.

Other communications vendors are also stepping up the layout of this piece. At the beginning of July, Ericsson 5G Lab staff demonstrated the quasi-5G technology in a wireless environment, and implemented 5Gbps throughput per second in 15GHz spectrum. This rate is 5 times times that of Samsung and 250 times times the current 4G LTE speed, meaning that if 5G is used, people can even download five high-definition movies at the same time within a second.

It can be seen that, to a certain extent, 5G will be the focus of future global communications vendors.