"Reuters.co.uk" said : China's Huawei says targeting 7 percent profit margin

as informed in Huawei Chief Executive Eric Xu was speaking on Friday after the company said that net profit edged up just 0.4 percent last year, its slowest annual growth since 2011. REUTERS/Philippe Wojazer/File PhotoHONG KONG Chinese telecom equipment and smartphone maker Huawei Technologies Co Ltd [HWT.UL] said on Friday it is targeting a net profit margin of 7 percent going forward, adding that its carrier business growth rate will slow in 2017. Journalists attend the presentation of the Huawei's new smartphone in Paris, May 7, 2014. (Reporting by Sijia Jiang; Editing by Anne Marie Roantree)


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Huawei blames smartphones for its slowing profit growth

Such is the case with Huawei, the Chinese telecommunications equipment and smartphone maker, whose recent successes in the mobile phone industry have apparently lowered the company's profit growth for 2016. In a market which values growth over market share, even just the slowdown of a company's expansion can be somewhat bad news. Or in other words, the company's greater focus on devices such as smartphones and wearables has apparently put a strain on its financials. And this might not be the best news for fans of Huawei's smartphones, as the company's CEO, Eric Xu, reportedly stated: "We're going to pay more attention to increasing our efficiency and reducing investments that cannot bring value." Whether phones fall into that category isn't immediately clear, but with the impressive reported device shipping numbers of more than 139 million, it's more likely that they don't.


Chinese technology company Huawei had a bullish 2016 in terms of sales that did not translate into a corresponding gain in net profit. During 2016, revenues from China grew 41 percent while an enabling environment in India, Thailand and Japan lifted its Asia-Pacific revenues by 36.6 percent. The share of female users is 27 percentage points higher for the Huawei P9 than for the Huawei P8." The Shenzhen-based company reported 32 percent growth in revenues to Chinese yen (CNY) 521.6 billion (~$75.1 billion) from CNY 395 billion while net profit rose 0.4 percent to CNY 37.1 billion (~$5.3 billion) from CNY 36.9 billion. "By December 2016, Huawei held a market share of over 15 percent in 33 countries, and over 20 percent market share in 22 of these countries, half of which were in Europe."


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