Huawei operating profit falls by 22 per cent for first half of 2012

Mobile infrastructure and handset manufacturer says it is relatively optimistic about its operating performance and profitability for the remainder of the year despite global economic situation

Huawei operating profit falls by 22 per cent for first half of 2012


Huawei, the telecommunications technology solutions provider based in Shenzhen, China, posted an operating profit of CNY8.79bn (£0.88bn) - an increase of 20.3% against 2011 H2, but a decrease of 22.0% compared with the first half of 2011. The company's operating margin was 8.6% for the half year.

Huawei increased its sales revenue to CNY102.7bn (£10.3bn) in the first half of 2012, a rise of 5.1% over the first half of 2011, the company revealed today (24 July 2012).

Huawei said it continues to maintain robust growth momentum although the global economic situation and telecom equipment market remains a significant challenge. 

Ms. Meng Wanzhou, Chief Financial Officer of Huawei, said: ‘In 2012, Huawei outlined our new pipe strategy and we will focus even further on this approach moving forward to ensure more effective growth and greater efficiency to drive continued improvements in operating performance. We are relatively optimistic about our operating performance and profitability for the remainder of 2012.’

In the first half of 2012, Huawei’s Carrier Network BG (Business Group) launched its GigaSite solution – the first to deliver gigabyte capacities to individual wireless sites – and it also unveiled AtomCell, which it claims is the most integrated solution for small cells in the industry. 
Huawei also deployed 38 out of the 80 commercial LTE networks launched worldwide and its LTE services now support 200 million people. 

The company said it maintained its leadership position in the optical access, optical transport and packet microwave markets. To help carriers navigate the transformations in ICT, Huawei launched the first comprehensive telecom cloud solution for carriers, and helped build the China Mobile Data Center, the world’s largest carrier data center. 

In the enterprise sector, Huawei restructured Huawei Symantec’s business and enriched its ICT solution portfolios for enterprises. Huawei launched the CloudEngine 12800 – a world-leading core switch for data centers – and was also the first to offer full-view telepresence products that deliver a more natural face-to-face experience. Huawei now has more than 2,000 channel partners worldwide, including over 200 tier-1 channel partners such as distributors and value-added partners.

In the consumer field, Huawei entrenched its presence in the global high-end smartphone market with flagship models like Ascend P1 and Ascend D1 becoming bestsellers in China, West Europe, Japan, Australia, Canada, among other markets.Huawei now holds 12.16% market share for smartphones in China, ranking second according to Analysys International.

Huawei said it had also stepped-up its move towards greater openness and transparency and said it will continue to focus on improving the business ecosystem to enhance its globalization and localization capabilities.

Written by Wireless magazine
Wireless magazine

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