Huawei Posts 20% Revenue Growth in 2014 Amidst Rapid Expansion

Huawei Technologies, China's telecom equipment giant, witnessed a 20% surge in revenue in 2014, marking a significant milestone for the company. The growth can be attributed to the rising sales of its 4G mobile communications devices, according to Guangzhou's 21st Century Business Herald. This achievement has positioned Huawei alongside Cisco Systems in terms of sales revenue, surpassing Ericsson's revenues since 2013. The company's main business profit margin for 2014 remained unchanged at 12%, while its main business profits were estimated at 33.9-34.3 billion yuan (around US$5.5 billion). Huawei's chief financial officer, Meng Wanzhou, attributed the unusual growth to the success of its 4G product sales.

Key Takeaways:

Huawei's business revenue increased by approximately 20% in 2014, fueled by the sales of 4G mobile communications devices.
The company overtook Ericsson in sales revenue in 2013 and is now closely aligned with Cisco Systems in terms of sales revenue.
Huawei's 2014 sales revenue was estimated at 287-289 billion yuan (US$46.4-US$46.7 billion), with main business profits estimated at 33.9-34.3 billion yuan (around US$5.5 billion).
The company's main business profit margin for 2014 remained unchanged at 12%.
Huawei commenced a business transformation scheme three years ago to cater to customers in the equipment, software, and services providers, and electronic communications devices manufacturers segments.
The two newly targeted segments achieved 27% and 32% growth in 2014, respectively.
Huawei focuses on the US$400 billion information communication technology market, which is considerably larger than the 100 billion yuan (US$16.2 billion) traditional telecom equipment market.
The company became the world's third-largest smartphone seller in 2014.

Statistics:

20%: the increase in Huawei's business revenue in 2014.
287-289 billion yuan (US$46.4-US$46.7 billion): Huawei's estimated 2014 sales revenue.
33.9-34.3 billion yuan (around US$5.5 billion): Huawei's estimated main business profits in 2014.
12%: Huawei's main business profit margin for 2014, unchanged from 2013.
27% and 32%: growth rates of Huawei's equipment, software, and services providers and electronic communications devices manufacturers segments in 2014.
US$400 billion: the size of the information communication technology market that Huawei focuses on.
100 billion yuan (US$16.2 billion): the size of the traditional telecom equipment market.

Sources:

Guangzhou's 21st Century Business Herald
Huawei's financial report published on Jan. 13
Huawei's 2014 business revenue report
Cisco's financial report published in January 2003