Huawei says operating profit rose 17% in 2014
China’s Huawei said its operating profit in 2014 rose by 17% from the previous year as global adoption of 4G contributed to its earnings.
Huawei said that it expects to post an operating profit of between $5.46 billion and $5.53 billion (33.9 billion yuan and 34.3 billion yuan) for 2014, an increase of 16.4% to 17.8%.
The growth was driven by sales of smartphones in its mobile devices division, which saw a 32% increase in revenue, and its enterprise arm, which increased by 27%. The Chinese vendor has entered strategic partnerships with enterprises including SAP and Accenture for joint innovation in areas such as cloud computing and big data.
Its carrier network business also saw growth of approximately 15% from the previous year, with the company profiting from an increase in 3G investment and the jump in 4G investments worldwide.
"By 2025, the number of connections around the world is expected to exceed 100 billion with connectivity becoming ubiquitous, much like air and water," said Meng Wanzhou, Huawei’s CEO. "Ubiquitous connectivity and big data will drive a new industrial revolution in intelligent technology, propelling the modernisation of traditional industries, and reshaping today's industries and business landscape.”
The financial results announced are unaudited. Huawei will release its final financial results audited by accounting firm KPMG in March 2015.