HUAWEI has released its audited financial results for 2017, reporting solid business growth. The company’s total annual revenue was CNY 603.6 billion (USD 92.5 billion based on year-end exchange rates), an increase of 15.7% over 2016. Net profits were CNY 47.5 billion (USD 7.3 billion), an increase of 28.1% year-on-year. In HUAWEI’s consumer business, the HUAWEI and Honor brands ran full speed ahead, leading to rapid growth in their respective markets. HUAWEI shipped a total of 153 million smartphones (including Honor) in 2017, and reported CNY 237.2 billion (USD 36.4 billion) in annual revenue, up 31.9% year-on-year.
With superior mobile services, our user base continues to expand. As of Q4 2017, HUAWEI’s mobile service users surpassed 340 million, with over 30 million in markets outside of China. In retail and channel development, as of December 2017, HUAWEI had more than 45,000 retail stores around the world, a year-on-year increase of about 10%.
Creating synergy between the HUAWEI and Honor brands
In 2017, our dual HUAWEI and Honor brand strategy took the market by storm. Together, the two brands provide a full portfolio of flagship products. Focusing on innovative features and superior experience, the HUAWEI brand made many breakthroughs in the high-end market, served a wider audience, and worked hard to deliver the best possible end-to-end experience to consumers. We made the following achievements in 2017:
HUAWEI’s flagship products, the HUAWEI P and Mate series, were hits among consumers around the world, boosting HUAWEI’s influence in the global high-end market. Overall shipments of the HUAWEI P10 and HUAWEI Mate 9 Series exceeded 20 million units.This was also a year of market breakthroughs for the G and Y series, and multiple mid-range Honor models.
Brand awareness, recognition, and reputation are growing among global consumers, and our market share has risen rapidly. Some of the major breakthroughs achieved in 2017 include:
HUAWEI and Honor smartphones together secured more than 10% of the global market share. We are now firmly positioned among the top three phone makers in the world.
Overall global brand awareness increased from 81% in 2016 to 86% in 2017. Outside of China, brand awareness rose from 64% to 74%.
The number of consumers considering a HUAWEI device in non-Chinese markets saw a year-on-year increase of 100%, which put HUAWEI among the top three global vendors in this category for the first time.
Our flagship products remained bestsellers after their launch, which raised the market share of our high-end models priced over USD 500 to over 10%.
HUAWEI (including Honor) held onto the largest share of the smartphone market in China. We became the most recommended brand in China’s mobile phone industry – a first for a Chinese brand. This award was issued to us by leading brand rating agency, Chnbrand, based on the China Net Promoter Score Index (C-NPS).
In Europe, HUAWEI smartphones won high acclaim from consumers in countries such as Germany, Finland, Denmark, Spain, and Italy, improving both our market share and reputation. HUAWEI ranked as the second most considered brand in a portion of these countries.
In Asia Pacific, HUAWEI made new breakthroughs in Japan, Malaysia, and Thailand, where market shares continue to grow. In key countries like Japan, brand consideration doubled.
In Latin America, the Middle East, and Africa, HUAWEI’s smartphone business grew steadily, with a market share of over 15%.
In 2017, progress in HUAWEI’s proprietary apps and software services included the following:
HUAWEI Pay supported more than 66 banks and was available in 20 device models, including smartphones and smart watches. It can be used for public transport in Beijing, Shanghai, Guangzhou, Shenzhen, Suzhou, Wuhan, Guangxi, and many other cities.
Skytone, an overseas data service, was available in over 80 countries and regions. With this service, consumers can access mobile Internet around the world without a SIM card.
In 2017, we released the Kirin 970, an AI chipset with a dedicated Neural Network Processing Unit (NPU). This chip powers the HUAWEI Mate 10 series of smartphones, helping break bottlenecks in computing performance and laying the foundation for new potential in human-machine interaction.
To deliver a smart experience in every scenario, HUAWEI is expanding its presence across PCs, tablets, wearables, smart homes, and connected vehicles. Such efforts include the following:
Shipments of Huawei tablets saw a year-on-year increase of 40% despite an otherwise sluggish market, making HUAWEI one of the world’s top three tablet manufacturers in terms of market share.
We launched the second generation of our MateBook, and the MateBook X won a series of top awards at CES Asia, including Best PC or Tablet and Best Experience, for its sharp design and powerful performance.
Smart homes will be a key component of an intelligent world. Our Consumer BG is advancing the deployment and operations of the HiLink smart home ecosystem with an eye on three stages of broader ecosystem development.
The first stage is growing connectivity, during which all devices will be connected.
The second stage is full connectivity, during which people, devices, and services will be connected in a closed loop.
The third stage is intelligent connectivity, during which devices will be capable of independent learning and intelligent collaboration across a range of complex application scenarios.
HUAWEI’s Consumer BG believes that competitiveness begins and ends with consumers. With this in mind, in 2018 we will continue to innovate in core technologies – including AI, AR, and VR – to guide evolution from smart devices to intelligent devices. With end-to-end capabilities that optimize synergy between chips, devices, and the cloud, our ultimate goal is to provide an experience that our consumers have never seen before, and lead the transformation of the smart device industry.