Huawei Sold More Smartphones But Made Less Profits Last Year
Of every single important moment that tech giant Huawei has lived since it was created, one of the most important was when Huawei's chief executive for consumer business group, Richard Yu, revealed last year that the company´s biggest goal was to become the biggest smartphone maker in the world by 2021, beating colossus like Apple and Samsung.
Huawei Didn´t Achieve Its Goals For 2016
The reason why this moment was so important is because it showed to the world that Huawei´s rise was something real and that the company is able to achieve highest positions. In fact, this is something that has been proved in the way in which the brand managed to sell more smartphones than ever in 2016, but new information revealed that even when this increase has been quite outstanding, its profits were quite low.
Believe it or not, Huawei´s consumer business group only made $2billion in operating profit last year as compared to the $2.2 billion in 2015. Actually, this numbers gets even worse when you add to the equation the fact that the company´s main target in 2016 was to achieve $2.5 billion, which means that the Chinese brand came in way below that, even when it sold more mobile devices than ever in its history.
Huawei Spent A Lot Of Money In Advertising
Naturally, this is something that doesn't seem to have any sense, considering that in the smartphone business, selling more mobile devices means more money, but in this case, things are a little more complicated. The reason of this situation is that Huawei´s consumer business group saw how its revenue increased by 42 percent to billion, but it also suffered a huge increase in the operating expenditures.
This means that the Chinese giant ended up spending more money by offering good deals to retailers and carriers that stock its mobile devices, and a huge amount in advertising and marketing efforts in order to make its products more famous and make customers feel attracted to it. Another reason was that Huawei´s margins were getting slammed by higher prices, considering that components' costs are going up as more features are being added to the company's top-shelf mobile devices. Of course, this is something quite usual that happens almost in every kind of company.
Huawei Wants To Achieve A Major Growth This Year
Believe it or not, even when selling a lot of products but having less profit than last year doesn't seem good at all, this situation might even have been incredibly great for Huawei, given the fact that these numbers could actually mean that the brand is focusing on growing share at the expense of profitibability, which is exactly what Huawei wants in order to become the biggest smarphone maker in the world at 2021. As you can see, this scenario was actually on the company plans, and far for representing something concerning, is something really good.
Apparently, the Chinese giant has set some ambitious goals for this year, which includes doubling the consumer group profits to $4 billion, which is almost twice than the number that Huawei set for last year. Naturally, this clearly represents the way in which the company is more powerful than it was in 2016, but the thing is that this time the money will have to be spent wisely, considering that if Huawei want to achieve this kind of growth, it would have to promote its products in a better way, and concerns itself with making a larger profit on its smartphones instead of worrying about topping the Cupertino giant and the South Korean company.
Wall Street Officially Lost Its Faith In Twitter
Although it is too soon to make predictions, If Twitter´s financial problems keep getting worse, it is quite possible that the company could be sold.
Verizon´s Team Revealed How An IoT Attack Almost Took A University Offline
A Verizon´s report explained that many IoT manufacturers are primarily making their devices for functionality, which means that the cyber security measures are really weak.
Google Might Remove Millions Of Apps From The Play Store
Given the fact that many of these zombies apps have been under Google´s radar for too long, the search giant is taking a serious stance on this particular issue for good.
Huawei Reveals AI-Powered Faster Phone Chip That Will Beat Apple And Samsung
Huawei aims to use artificial intelligence-powered features such as instant image recognition to take on rivals Samsung and Apple when it launches its new flagship phone next month.
Huawei Mate 10 Latest Official-Looking Teaser Shows Bezel-Less Display, Dual Camera And More
An official teaser of Huawei suggests the Mate 10's release date, specs, and features.
MORE IN ITECHPOST
Car Tracking Technology Evolved with a GPS Camera. Here's How
The number of vehicles on the road has increased significantly. It has led to higher exposure to risks while driving a car. It has also changed the way we look at vehicle security. Owners face multiple challenges when it comes to the protection of their vehicles, as well as their loved ones.
Wellness Technology is a Billion Dollar Industry. Here Comes the Next Wave: Death Positive & Grief Wellness
The World Health Organization estimates that 25% of all people will be affected by mental or neurological disorders at some point in their lives, with roughly 450 million individuals currently struggling with a condition.
Eight Must-Have Tools to Keep Your Car Out of Garage
We all dread taking our car to a garage for repairs. We might just want to avoid the inconvenience of being off the road or maybe the costs associated, which can even lead to knock-on effects on things like our holiday plans.
6 Hacks for Students to Choose a Laptop While on a Budget
The modern world tries to drown us in the sea of choices. One can’t simply buy a laptop - there are hundreds of laptops around and sometimes our budget becomes the only real limitation we can rely on. But how to choose other parameters to get the best laptop possible?