According to the latest news on the 25th, Huawei announced today its operating results for the first half of 2016. According to the communique, Huawei's revenue for the first half of 2016 reached 245.5 billion yuan, a year-on-year increase of 40%, which is higher than the 30% growth in the same period of last year. However, operating profit was only 12%, lower than the 18% in the previous six months. In addition, Huawei did not disclose its net profit, nor did it disclose the specific revenue of each business unit.
According to Huawei's chief financial officer Meng Wanzhou, thanks to Huawei's globally balanced layout and focused pipeline strategy built by Huawei, in the first half of 2016 Huawei achieved steady growth in all three major business areas:
1. In the enterprise business segment, Huawei insists on adopting an open technology architecture. With its core products such as cloud computing, storage, and SDN, as well as full-line solutions such as Ping An City and Power Internet of Things, Huawei has become an increasingly important player in many areas such as public safety, finance, power, transportation, and education. Accelerate the development of the track.
2. In the consumer business, Huawei still maintains a steady growth in the global market. The flagship products represented by P9, Mate8, Glory V8, and MateBook are highly recognized and loved by consumers worldwide. They have become one of the most popular consumer end brands in nearly 30 countries and regions. Huawei's first 2-in-1 notebook product, the MateBook, has also landed in dozens of countries around the world and received widespread praise from the industry.
3. In terms of operator services, Huawei focuses on the business and technical requirements of the operator's digital strategy. From four aspects of business, operations, architecture and network, Huawei strives to provide operators with comprehensive transformation support and services, and jointly promote the development of cutting-edge technologies such as 5G and IoT with the industry.
With regard to the reasons for the decline in operating profit, the industry generally believes that Huawei has increased its investment in consumer business. Last year, Huawei's total revenue was 395 billion yuan, of which consumer business was 129 billion, an increase of 73% over the same period last year. In February of this year, Huawei released the first MateBook personal computer outside the mobile phone, significantly increasing the related investment in the consumer business. According to previous estimates, Huawei’s total revenue this year will reach RMB 59 billion. Ren Zhengfei previously publicly stated that by 2020, Huawei’s annual sales will reach more than US$150 billion (approximately RMB 1 trillion).
According to media reports, in May of this year, Ren Zhengfei mentioned in an internal forum: “The terminal is a monitor that is most needed in human civilization and will not have no future. It is only that we are not investing enough and we have not fully grasped human society. The development opportunity points.†At the same time, said: “Apple is very rich, but it is too conservative; Huawei has no money, but it is as crazy as a wealthy person to invest. If Apple does not dare to invest money, it can only follow us, Huawei. It will become as rich as Apple."
According to the 2016 World Top 500 ranking released last week, Huawei jumped from 228 in the world last year to 129. Within just one year, it jumped as much as 99 places. It was amazing. It is hoped that Huawei, who is proud of the people, will go further and better.
