Huawei records slowest revenue growth in 4 years

The past year seems to be not much in favor of Huawei. As per Huawei’s Chief Executive Ken Hu, China’s Huawei Technologies expects to see only 15%growth in their annual revenue of 2017; a notable drop off from earlier year’s revenue.

This is the slowest growth of Huawei since 2013. Revenue from Huawei’s Consumer Business group that includes smartphones and smartwatches is expected to increase 30% in 2017, decreasing from 44% in 2016 and 73% in 2015.

Huawei smartphones shipments are projected to reach to 153 million units, increased from 9% over 2016. This shows strong growth of shipments in the market. Huawei has been ranked as the world’s third-largest smartphone maker after Samsung and Apple. Huawei’s leading position in the world’s market came under threat from local rivals over the past one and half year. Which is why it has restrategized its marketing plan. Huawei now is more focused on premium and mid-rangers and wouldn’t be targetting low-end devices.

Huawei’s strategy of releasing high-performance smartphones that combine powerful technology and functional design has a direct impact on its growth. It has become more recognized in the market by its increasing audience.

According to Huawei’s CEO Richard Yu,

“In 2018, we will have disruptive products and innovative technology to lead the global market. I believe that 2018 will be the first year that we will truly be walking the road to global prominence.”

Huawei has grown into one of China’s largest private corporations. It has now planned an expansion into the overseas market such as Europe especially by selling its smartphones. The Chinese smartphone maker is also targeting the American market and they are in the talk with U.S. wireless operators (including Verizon and AT&T) about selling flagship smartphones to American consumers.

Huawei already sells its budget devices in the US via Amazon, Walmart, and other retailers, but working directly with US carriers could help him to boost its smartphone revenue. Huawei has to provide more innovative products in 2018 to compete with its Chinese rivals like Xiaomi, Oppo, and Vivo.