Huawei Boasts 2014 Revenues of $46B

A diversified portfolio and aggressive expansion in the enterprise and smartphone markets helped Huawei achieve an enviable year-on-year revenues growth rate of 15% in 2014, taking its full-year sales figure to US$46 billion, according to the vendor's CEO.

In a "New Year Message for 2015," current CEO Ken Hu noted that Huawei Technologies Co. Ltd. had "seized" opportunities resulting from the rollout of 4G and accelerated innovation in cloud computing, big data, and the Internet of Things (IoT). "As a result," the CEO stated in his message, "our sales revenue is expected to reach US$46 billion in 2014, an increase of over 15% year-on-year." No further details related to margins, profits or business unit performance were included.

The CEO went on to highlight areas of development within Huawei, including its extensive 4G business, customer wins for its 400G router (now sold to more than 160 customers) and "joint innovation on NFV/SDN integration services" with "20 leading carriers." (See Eurobites: Telefónica, Huawei Get Closer, Huawei, China Telecom Claim Virtual CPE First, NTT Docomo Completes NFV Trial With Multiple Vendors and Broadnet Gets 400G-Ready With Huawei.)

In the enterprise technology sector, Hu cited partnerships with "SAP and Accenture for joint innovation on cloud computing and Big Data," adding that Huawei has now built more than 480 data centers globally, "including 160 cloud data centers, while our agile networks and S12700 agile switch now serve hundreds of top-tier industry customers." (See Huawei SAP HANA Appliance Makes Successive Breakthroughs in Europe and Huawei Intros SDN-Enabled Campus Switch.)

As for the device segment, the CEO cited significant increases in market share, but did not confirm details reported by Reuters last week. Citing an internal memo from consumer business unit leader Richard Yu, Reuters reported that Huawei's device sales rose by about a third to $11.8 billion in 2014, with Huawei having sold about 75 million smartphones globally during the year, an increase of more than 40%. (See Handset Vendors Battle for Limelight and Asia Strengthens Its Grip on Smartphone Market.)

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So what's next? CEO Hu noted that Huawei expects there to be 100 billion connections worldwide by 2025, resulting in a networking and data market of "unprecedented scale. How to store and process, transmit and distribute, acquire and present these massive data are enormous challenges as well as strategic opportunities to Huawei."

To take advantage of those opportunities, the CEO said that Huawei will focus on becoming a more agile and responsive organization, improve "project operations and management capabilities" to meet customers' needs, concentrate on "market-oriented innovation and customer engagement," and step up "efforts to safeguard cyber security and user privacy."

In 2013, Huawei achieved full-year revenues of $39.5 billion -- surpassing rival Ericsson AB (Nasdaq: ERIC) in terms of full-year revenues for the first time -- and net income of nearly $3.5 billion. (See Huawei Pumps Up Its Profits to $3.5B and Ericsson Flatlines in 2013, Trails Huawei.)

— Ray Le Maistre, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile, Editor-in-Chief, Light Reading

R Clark 1/6/2015 | 2:02:38 AM
Re: 15% It's been on quite a ride. Ten years ago Huawei did just $5b in revenue.

If the Reuters number is right, Huawei's handset division on its own is nearly as big as ZTE.
Ariella 1/5/2015 | 9:14:45 AM
15% That's a very respectable rate of growth.
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