Chinese smartphone firm Huawei has reported a surge in profit of 39.8% for the first half of this year. Its revenue of 245.5 billion Yuan ($37 billion) is a significant increase over the 175.6 billion yuan ($26.5 billion) for the corresponding period last year.
The net profit remains undisclosed, although the company did state that the operating profit was 12%, which is down from the 18% in the first half of last year. Huawei is third only to Samsung and Apple as worldwide smartphone vendor, and is also involved in the telecoms industry.
While the Chinese smartphone firm began its smartphones life by marketing lower-cost smartphones, it is now involved in higher quality phones and improving its brand. The company has enjoyed steady growth across all business sectors in the telecoms industry.
One of Huawei’s major issues presently is a patent dispute with Korean company, Samsung. Huawei and Samsung just do not seem to get along, and the two firms have been at loggerheads many times, and this time Samsung is claiming a patent violation after claiming to have tried to reach an amicable solution with the Chinese smartphone firm. Huawei had sued Samsung in May over patent issues related to two Huawei inventions claimed to have been used in Samsung phones.
There seems to be a long-running soap opera between the two which also appears to have spilled over into the USA. Huawei, based in Shenzen in China, has been blocked from becoming involved in broadband operations in the USA for several years. This is because of a spy fear in the US regarding the Chinese smartphone firm’s potential to use American internet broadband connections to spy on the USA for the Beijing government.
Much the same is the case in Australia. There, Huawei is banned completely from Australia’s broadband network. However, broadband operators are permitted to use Huawei technology so long as the company itself is not involved in the installation or operation. The technology must therefore be good!
The company has other consumer electronic products which are permitted in the USA, although Huawei has found it next to impossible to grow a viable presence. This Chinese smartphone firm must have something about it, although it must be doing something right! A 40% increase in first-half revenue does not just happen by itself!
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