Huawei posts huge rise in profits thanks to mobile consumer division (and no thanks to America)

by Matt Klassen on April 5, 2016

Huawei-LogoChinese telecom giant Huawei is experiencing meteoric levels of success around the world, but looking at the mobile market here in North America, you’d be hard pressed to know the company even existed. Rising to third spot in the global mobile market (behind only Samsung and Apple) Huawei announced this week that profits for the year 2015 were up by 33% over the year previous, bolstered largely by a rising global demand for its consumer-oriented smartphones.

But I know what you’re thinking: How can the world be clamouring for smartphones made by a company that you’ve probably never heard of, at least not when it comes to the mobile market? Thanks to a smear campaign of epic proportions, it wasn’t that long ago that Huawei was all but driven out of the American telecom sector, following accusations of spying, espionage, and being deemed a threat to national security.

While having its telecom hardware effectively banned might have crippled other firms, Huawei, one of the world’s largest telecommunication firms, took it in stride, working to expand and solidify its presence in mobile markets across Asia and Western Europe, and even took measures to improve its image on this side of the pond, leading to the company $5.9 billion (USD) in net profits on $60.8 billion in worldwide revenue last year.

Call it arrogance, call it ignorance, call it what you will, but for years the prevailing thought has been that mobile companies can’t succeed globally without a significant presence in the U.S. market. When Huawei was effectively tar and feathered by the American government over accusations of spying and espionage, which subsequently led to the company having its broadband projects restricted and its telecom hardware all but outlawed, I’ll admit that things didn’t seem to be going well for the Chinese telecom giant, but that didn’t stop the firm from growing its mobile business in the rest of the world, delivering high quality phones at a variety of price points that have challenged the dominance of Samsung and Apple.

Beyond that, Huawei has even started its quiet return to the American market, announcing in late 2015 that it has plans to release several phones here this year, particularly its premier smartphone, the Mate 8.

All that to say, with a rise of over 30% in profits last year, done without the help of sales in the American market, just imagine the growth potential still available to Huawei, as any success here in North America would surely mean that top spot as the world’s largest smartphone manufacturer would be in reach.

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Written by: Matt Klassen. www.digitcom.ca. Follow TheTelecomBlog.com by: RSS, Twitter, Facebook, or YouTube.

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