Huawei Consumer Business Group (BG) today announced its 2014 financial performance. Total sales revenue increased 30% year-on-year to USD 12.2 billion, crossing the 10 billion mark for the first time. Shipment grew by 7.8% to a total of 138 million devices in 2014, including 75 million smartphones, representing a year-on-year increase of 45%.
“Our strategy of focusing on premium mid- to high- end products has borne fruit, with 2014 resulting in significant achievements in a number of areas including product R&D, brand awareness, channel development and growth in market share which further consolidated our number three position in the global smartphone market. The global influence of our brand has continued to grow, and Huawei has become the first mainland Chinese company to successfully enter Interbrand’s Top 100 Global Brands of 2014 list,” said Mr. Richard Yu, CEO of Huawei Consumer BG.
Growing Brand Awareness Locally
South Africa and China registered the strongest growth in brand awareness this year, whilst North Africa and Latin America reported a more significant drop.
“The growing popularity of our mid- to high- end smartphones among consumers has been enhanced by our internet marketing initiatives, enabling Huawei’s brand awareness to continue its expansion around the globe and specifically in South Africa,” said Peter Hu, Managing Director for Huawei Consumer BG Southern and Eastern Africa.
A recent consumer survey report from IPSOS, which covered 32 countries, found that Huawei’s brand awareness in South Africa rose from 26% in 2013 to 86% in 2014, meaning that the Huawei brand is recognized by nearly two thirds of the respondents in South Africa. In South Africa, Huawei continue to grow in terms of market share with more than a million devices sold in South Africa alone in the past year.
“In terms of brand awareness we have grown by 58% and we continue to make inroads into the consumer space now through our latest flagship device, the innovative Huawei Mate 7, a first of its kind. Through its unique finger print technology feature the Mate 7 device, available in stores early March, boasts one the best security features found in any smartphone device today,” added Hu.
Success of Focusing on Premium Mid- to High- End Products
One of the most notable achievements of 2014 is the shipment contribution of mid- to high- end smartphones which rose to 18%. Huawei P7, one of Huawei Consumer BG’s premium flagship products, achieved global shipment of four million units only six months after it was launched in Paris in May while Huawei Mate7 has been overwhelmingly well-received among business executives in all markets and shipped over two million units only three months since its launch in September last year.
“We are proud that thegap in market experience between Huawei and major competitors has been narrowed when compared to previous years. This is thanks to our continued efforts of solely seeking to improve the consumers’ experience as well as our recent sponsorship efforts that include the top five rugby unions (the DHL Western Province, the Cell C Sharks, the Emirates Lions, the Vodacom Bulls and the Toyota Cheetahs) and PSL side, Ajax Cape Town as well as by creating the Huawei Culture Club as an engagement platform for our consumers to music events that include bringing international music stars to South Africa like One Direction, One Republic and The Script,” Hu concluded.
Sustaining the Momentum in 2015
2015 will be a year of strategic deployment for Huawei Consumer BG, in which Huawei Consumer BG will leverage the opportunities in Internet, the Internet of Things and car networking to achieve breakthroughs in various business areas including products, brand, marketing, channel, retail and e-commerce. Huawei Consumer BG will focus on flagship products brand marketing to establish Huawei’s brand image as a symbol of innovation and high-quality products through its high-end products. The Honor brand will focus on internet business and to replicate its successful online business model to overseas markets.
Mr. Richard Yu, CEO of Huawei Consumer BG, concluded, “Looking ahead, Huawei Consumer BG aims to sustain the growth momentum created in 2014 and further consolidate Huawei’s leading position in the mid- to high- end smartphone market with a 2015 shipment target of 100 million units. With Huawei’s strong technical capability, Huawei Consumer BG will continue to create extraordinary brand experiences to consumers all over the world and realizing dreams for people everywhere.”
