Huawei generated profits of US$5.5 billion in 2014, enabling it to maintain its margin at around 12%.
The Chinese equipment maker on Tuesday published a set of unaudited financials for calendar 2014, in which it noted that profits for the year are expected to come in at between 33.9 billion yuan and 34.3 billion yuan (€4.67 billion-€4.73 billion), or around $5.5 billion. At the top end, that constitutes an increase of 17.9% on 2013 and a consistent margin, the vendor said.
Confirming what rotating CEO Ken Hu said in his new year message, Huawei noted that sales revenue in 2014 will reach $46 billion-$47 billion (CNY287 billion-CNY289 billion, or close to €40 billion), up almost 20% on the previous year.
Huawei posted the biggest growth at its consumer business, which saw revenue increase by 32% last year thanks to higher smartphone sales. The firm reported "par ticularly strong growth in emerging markets."
Huawei’s consumer business accounted for 24% of its revenues in 2013, up from 22% the previous year. It has not yet shared its revenue splits for 2014.
The vendor’s carrier networks unit, which accounted for 70% of turnover last year, posted a 15% increase in revenue in 2014, driven by "a steady increase in 3G investment and the jump in 4G investments across the globe." Meanwhile, its enterprise business grew by 27%.
Huawei upped its R&D spending in 2014. It spent $6.4 billion-$6.5 billion on research and development, an increase of 28% on 2013. Its R&D spend over the last 10 years comes to $30.3 billion.
The firm will publish its audited 2014 results in March.
