Huawei’s annual shipments rose despite a decline in the smartphone market
The global smartphone market has seen stuttering growth recently. China (FXI), the world’s biggest market for smartphones, saw its first annual decline in smartphone shipments in 2017, according to Canalys.
Despite this backdrop, Chinese giant Huawei, the third-largest smartphone maker in the world by units sold, and the largest in China, saw robust smartphone sales in 2017. Huawei sold 153.1 million units globally in 2017, according to IDC. According to the research firm, Huawei’s annual shipments rose 9.9% in 2017 despite the slump in the local market.
Huawei’s earnings rose backed by strong smartphone sales
This rise in sales fueled the company’s growth in 2017. Huawei’s net income rose 28.1% last year and reached 47.5 billion yuan, or $7.3 billion. The company’s 2017 revenue rose 15.7% from the previous year to 603.6 billion yuan or $92.8 billion.
However, according to research firm IDC’s estimates, Huawei’s smartphone shipments in 4Q17 fell 9.7% on a YoY basis, while the overall smartphone market saw a 6.3% decline YoY in 4Q17. Samsung (SSNLF), which was dethroned by Apple in 4Q17, saw a 4.4% decline in 4Q17 from 4Q16. In comparison, Apple’s 1% YoY decline in shipments in 4Q17 looks relatively moderate.
Meanwhile, Huawei’s local competitor Xiaomi saw a 96.9% surge in shipments, making it the fourth largest global smartphone vendor as of 4Q17.