Huawei is on Fire: First-half Shipments up by 25% – Revenue Jumps 40%

Chinese consumer electronics giant Huawei continued its impressive run of form for yet another year. The company reported that its shipments are up by 25%. That would hardly surprise anyone who has been following Huawei’s progress over the last few years. Huawei had reported late last year that they had shipped 100 million smartphones in 2015 becoming the third largest smartphone brand by shipments at the end of 2015.

More from iSpyPrice: Find a comprehensive list of Huawei 4G mobiles here

What makes Huawei’s first-half performance this year even more credible is the fact that they have managed to push the revenue up by a fair notch. The company reported that its revenue has jumped by 40% year-over-year. Huawei is now als the world’s third largest smartphone brand by sales. Products shipped are great. Products sold are the real gold.

Here is a quick rundown on the numbers surrounding the Huawei report:

• Huawei shipped 60.5 million smartphones in the first-half of 2016.
• Huawei’s consumer business reported revenues of $11.6 billion, a jump of over 40% from previous year.
• At the end of the first financial quarter Huawei held 8.3% of the global smartphone market share. This is according to the research firm Gartner.

We are confident that Huawei will maintain its current momentum, and round out the full year in a positive financial position backed by sound ongoing operations.

– Sabrina Meng, Chief Financial Officer, Huawei

While Huawei hasn’t disclosed a segment wise revenue breakdown for its businesses, these numbers alone tell quite a story.

When in 2015 Huawei met the 100 million shipments mark whether they will be able to turn the shipments numbers to actual sales numbers was still in question. While such speculation can never be totally laid to rest Huawei’s sales figures in the first half have been beyond impressive.

Another reason why Huawei’s figures are impressive is because the top two smartphone vendors in the world have seen a bit of a market share decline in the recent past. In fact, the International Data Corporation (IDC) in its Q1 2016 Worldwide Quarterly Mobile Phone Tracker report stated that Samsung’s shipment numbers declined by -0.6% year-over-year while Apple’s numbers saw a steeper decline of -16.3% year-over-year. Huawei on the other hand saw a 58.4% increase in shipments for the same period.

This means that Huawei has been doing way better than Apple and Samsung in terms of shipments for about year. Of course, let’s not forget that Apple and Samsung still ship a lot more smartphones compared to Huawei and these figures only reflect data relative to a given period in time.

According to the same IDC report, Vivo recently stormed into the top 5 smartphone brands in the world while Oppo also continued its very impressive run that has spanned the last 2 years. While Lenovo and Xiaomi dropped out of the top 5 brands list, according to IDC, the Chinese market dominance on the global smartphone scene is now an emphatic ‘Yes!’ and Huawei is leading this charge at the moment.

The one little hurdle to Huawei’s imminent global smartphone dominance could be at home rather than on the global scene. The likes of Xiaomi, OnePlus, and Gionee are offering some quality products at extremely reasonable prices, which makes the consumers have a preference for these brands.

Huawei and its likes do offer low-cost products but they are few and far in between. This means that the consumer perception of brand Huawei is very much that of a premium smartphone brand; a Chinese Apple, if you will. If Huawei wants to topple Apple and Samsung from the top two podium positions, it may want to reconsider its pricing strategy at home.