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Huawei 2016 Analyst Event Day One: Build Up a High-end Brand

by Linda Sui | Apr 11, 2016

There are hundreds of analysts and media worldwide attended Huawei 13th Global Analyst Summit in Shenzhen, China from April 11th to 13th . Our analysts from Wireless Smartphone Strategies (WSS) services also joined the event.

The key theme of day one is about corporate overall performance review and strategy outlook. 2015 is a banner year for Huawei. Financially company overall revenue increased +18% YoY to RMB 395 billion. Company overall operating profit margin stood at 11.6% in 2015, slightly down from 11.9% in 2014 mainly due to higher R&D investment (15.1% in 2015, up from 14.2% in 2014), as well as higher portion of consumer business revenue.

Operator business still made up lion’s share (59%) of overall revenue, but consumer business (33%) has been growing robust in 2015, making up one third of company overall revenue, up from 26% one year ago. Consumer business group (smartphone, MBB and other products) posted RMB 129.1 billion revenue in 2015, significantly up +73% YoY, leading the pack among all three business groups.

Geographically China contributed to 42% of total revenue in 2015, up from 38% in 2014, mainly thanks to the uptake of 4G LTE in China. All other regions (Europe, Africa, Middle East, Asia Pacific and America) also saw a healthy growth.

For smartphone business, Huawei solidified the third largest position by volume and by value worldwide in 2015, according to the report from our Wireless Smartphone Strategies (WSS) services. However, compared with the two giants Apple and Samsung, the operating margin on Huawei smartphone business was still quite slim. Our Wireless Smartphone Strategies (WSS) services track top 16 smartphone vendors value and profitability figures on quarterly basis in this report.

Moreover, Huawei set consumer business goal as “build a high-end brand and establish consumer centric ecosystems” this year. Apparently high end brand is a new element which hadn’t outlined previously. There are NO any Chinese brands that have ever successfully made inroad as a high end brand globally. Huawei is the first mover among all Chinese brands.

How many smartphones will Huawei ship in 2016? How will Huawei execute and implement its high end brand dream? In addition to partnering with Leica and others, is there any other initiative to reach the goal? How will Huawei build up consumer-centric ecosystems? Please stay tuned for our day two blog.

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Previous Post: Blackberry Smartphones Need a New Sub-Brand | Next Post: Huawei 2016 Analyst Event Day Two: Can Huawei Achieve 140M Smartphone Shipment in 2016 with New P9 and Continued Honor Success?

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