Phone sales helped network equipment giant Huawei to bank 20 per cent more revenue in 2014 than the previous year, the company said today in an earnings guidance.
The Chinese company estimates sales for the 12 months to come in at between ¥287-289bn (£30.3bn to £30.9bn) when the final numbers for calendar ’14 are reported in March.
The core business, network equipment sales - where Huawei is second to Ericsson - grew 15 per cent in the year, it revealed. The newer consumer electronics division bounced 32 per cent - a result of staying out of the rock-bottom landfill end of the market and tight cost control.
The overall rate of growth is slower than in previous years, when operators rushed to build out LTE networks, but the company maintained its margins.
Turnover at the enterprise wing, which has been growing well in China but faced relative struggles in North America and Europe - are up 27 per cent, according to company estimates.
Rivals including Cisco disrupted channel building activities and Huawei is perhaps suffering from some earlier hiccups when it first launched, with inconsistencies in the supply chain.
Huawei said it will post an operating profit of between ¥33.9bn (£3.62bn) and ¥34.3bn (£3.66bn) for 2014, up 16 to 17 per cent up year-on-year.
The privately held, employee-owned company revealed it will plough around ¥40.5bn (or £4.3bn) into R&D this year. It will post more details in March. ®