China's Huawei aims to double last year's record revenue by 2018

Mon Mar 31, 2014 5:34am EDT
 
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By Yimou Lee and Paul Carsten

SHENZHEN/BEIJING (Reuters) - China's Huawei Technologies Co Ltd has targeted 2018 revenue almost double the record reaped last year when the company booked 34 percent profit growth and became the world's third-biggest smartphone manufacturer.

Huawei has been flooding emerging markets with low-priced smartphones and tapping advanced economies with high-end offerings to make up for slowing growth in its primary business of building mobile telephone networks.

Smartphones last year contributed the most to revenue growth in yuan terms and are likely to feature prominently in reaching a revenue target which translates as roughly 10 percent annual growth.

To reach that target, the company will have to improve on 2013 when revenue hit a record yet grew at a pace slower than Huawei's 10 percent goal primarily because overseas companies spent less on networks.

Huawei also missed its smartphone sales target as local peers Lenovo Group and ZTE Corp pursued similar strategies to close the gap with leaders Apple Inc and Samsung Electronics Co.

"In 2014, we are aiming our sales efforts at improving our branding image," Eric Xu, Huawei's rotating and current chief executive, said on Monday.

"At the same time, we are going to build our (smartphone) product portfolio in the mid-range and high level," Xu said after the unlisted company released audited earnings results.

In 2013, revenue hit a record 239 billion yuan ($38.47 billion), helping operating profit land within Huawei's guidance range, and pushing net profit up 34.4 percent to 21 billion yuan - its quickest profit growth in four years.   Continued...

 
A man looks at a Huawei mobile phone as he shops at an electronic market in Shanghai January 22, 2013. REUTERS/Carlos Barria