Huawei sees sales rise but profits fall in H1

Chinese telecoms equipment vendor Huawei achieved revenues of RMB 102.7bn (US$ 16bn) for the first half of this year, up 5% on an annual basis, but saw its operating profits fall 22% by the same comparison to RMB 8.8bn.

The privately-held company does not provide details for the performance of its three main business groups (Carrier Network, Enterprise and Consumer), but states that the global economic situation and telecom equipment market remains a “significant challenge”.

Huawei’s main competitors have been suffering for the same reasons of late: Alcatel-Lucent issued a profit warning just last week, as did Chinese vendor ZTE, while Nokia Siemens Networks is being forced to make significant cuts to its headcount.

Its not all doom and gloom however: Swedish market leader Ericsson posted a SEK 1.2bn (€140mn) net profit for the second quarter of this year, down 63% from one year earlier but still placing it comfortably in the black.

If Huawei is to overtake Ericsson then it will first have to dislodge the lingering antipathy harboured by some Western governments, including the US and most recently Australia, where the company was blocked from participating in a broadband equipment tender for cyber-security reasons.


We welcome reader discussion and request that you please comment using an authentic name. Comments will appear on the live site as soon as they are approved by the moderator (within 24 hours). Spam, promotional and derogatory comments will not be approved

Post your comment

Facebook, Instagram and Sky case study: Game of Thrones

BT at IBC: 'unlocking the power of fibre IPTV'

IP&TV News tries out 4G Broadcast at the FA Cup Final

Thomas Riedl: “Google TV has evolved into Android TV”

Tesco and blinkbox: what went wrong?

Reed Hastings and 2030: is he right?