Huawei Profits Soar On Strong Smartphone Growth As It Prepares To Launch P9 Flagship Model

Huawei has openly stated that it has plans on usurping Apple — and eventually Samsung — to become the world’s biggest smartphone maker, and if its results for 2015 are anything to go by, then it is well on its way.

Overall, Huawei saw profits rise 33 percent in the 12 months to the end of December with most of the growth coming from its consumer division, with the Chinese company bucking the trend of slowing smartphone sales seen among the top manufacturers in the world.

Huawei announced earlier this year that its smartphone sales had jumped 44 percent in 2015 with the company shipping over 108 million units. This growth contributed to a 73 percent increase in revenue in its consumer division as the company seeks to move away from its image as a budget smartphone maker and compete directly with Apple and Samsung.

Typically seen as a China-centric company, Huawei revealed that 58 percent of its revenue now comes from overseas, with its smartphones alone being sold in 170 countries. The company is due to launch its P9 flagship smartphone next week at an event in London with the metal-clad phone expected to come in standard, Lite and Max models, and feature a dual-camera setup.

One of the countries Huawei has yet to find significant success in, however, is the U.S. where its brand has been hampered by accusations by the government that its networking equipment is being used to help the Chinese government spy on foreign countries.

Huawei is looking to change this perception and has launched a two-pronged approach to cracking the U.S. market in 2016. Firstly, the company has launched a sub-brand called Honor in North America that will comprise a range of smartphones at budget prices but with relatively premium design and features. The range has already proven a success in China and Europe.

The company will also continue to sell its own Huawei-branded smartphones in the U.S. but it will focus on highlighting its premium devices such as the recently launched Mate S and Mate 8, both of which offer top-of-the-range specs and materials, and will compete directly with the iPhone and Samsung’s Galaxy S7.

The private company revealed in its annual report that overall net profits rose to 36.9 billion yuan ($6.13 billion) in 2015‚ a rise of 33 percent, while its global revenue grew to 395 billion yuan, up 37 percent year-on-year.

While its consumer division saw the biggest growth in 2015, its networking business continues to drive the majority of its revenue with sales up 21 percent to 232.3 billion yuan compared to the previous year.