Huawei posted its slowest year-over-year revenue growth since 2013 in 2017, even though it briefly overtook Apple to claim third place in global smartphone shipments.
According to a letter published on the company’s WeChat account by rotating CEO Ken Hu, Huawei’s revenue increased by roughly 15 percent to about 600 billion yuan (approximately $92 billion) for the year.
Hu attributed the relatively modest growth to a stagnation in the carrier market. Investment in next-generation network construction had not yet accelerated in 2017, though Huawei expects momentum to pick up as 5G deployment approaches.
“Our carrier business was affected by market investment trends but remains stable,” Hu wrote in the memo. “The market’s fluctuations make us more determined to partner with carriers and capture future opportunities.”
Huawei’s consumer division, which develops smartphones, wearables and other devices, saw stronger growth. In 2017 that unit grew by an estimated 30 percent to generate about 236 billion yuan (around $36 billion).
Having consolidated its position in China, Huawei has turned its attention to expanding smartphone shipments globally. Samsung continues to lead the market while Huawei and Apple have been competing for second place.
Market analysis from Counterpoint Research reported that Huawei surpassed Apple’s global smartphone sales for the first time in June and July of last year, though Apple’s new iPhone lineup released in September helped Apple regain ground in the following months.
Huawei is intensifying its push into overseas markets, particularly Europe, and has reportedly held discussions with U.S. carriers about selling its phones in the United States. Historically known for strong mid-range devices, Huawei has been moving upmarket in recent years, introducing high-end flagship phones with advanced features.
Success in Western markets, however, will depend in part on addressing internal issues that have affected the company’s reputation. Last month, Huawei disclosed that the head of sales for its China consumer business had been detained amid a corruption investigation.
“We were disappointed to see that there are still employees and managers who were turned over to judicial authorities this past year,” a company representative said. “I would like to stress, once again, that the company has zero tolerance for corruption. Do not take chances.”
For a hands-on perspective, see the review of the Huawei Mate 10 Pro and its AI features in the original coverage.
What are your thoughts on Huawei’s performance over the past year? Share your views in the comments.